Project 1

CHAPTER - 1
INTRODUCTION
1.1 INTRODUCTION
1.2 REVIEW OF LITERATURE
1.3 STATEMENT OF THE PROBLEM
1.4 OBJECTIVES OF THE STUDY
1.5 SCOPE OF THE STUDY
1.6 RESEARCH METHODOLOGY
1.7 LIMITATIONS
CHAPTER - 1
INTRODUCTION
1.1 INTRODUCTION
The financial system constitutes of the money market and capital market. The capital
market facilitates the transfer of small and scattered savings of the household sector into
productive investment. It helps in financing the activities of corporate entities, Government
and Public Sector organization. The capital market provides liquidity, marketability and the
safety of investments to the investors. Properly organized and regulated capital market
provides scope for substantial development for an economy, through the availability of long
term funds, in exchange of financial securities.
The market for long term securities like bonds, equity stocks and preferred stocks is
divided into primary market and secondary market. Primary market deals with the new issues
of securities. Outstanding securities are traded in the secondary market, which is commonly
known as stock market or stock exchange. In the secondary market, the investors can sell or
buy securities. Stock markets predominantly deal in the equity shares. Well regulated and
active stock market promotes capital formation. The health of the economy is reflected by the
growth of the stock market.
Today investing in financial securities such as shares, debentures, bonds, and other
financial securities are considered to be the most profitable investment avenues when
compare to other type of investments. However, this financial security not only ensures
higher return but also bears higher risk. Therefore, the combination of these two
characteristics in the financial securities has created a challenging task for the investors.
The Equities are playing a major role in contribution of capital to the business from
the beginning of capital markets. The large numbers of investors have shown interest to
invest in the stock market. The price of a security represents a consensus. It 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 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. These simple
statements are the cause of a major challenge in forecasting security prices, because they
refer to human expectations. As we all know first-hand, human expectations are neither easily
quantifiable nor predictable. If prices are based on investor expectations, then knowing what
a security should sell for becomes less important than knowing what other investors expect it
to sell for. That's not to say that knowing what a security should sell for isn't important, it still
is. But there is usually a fairly strong consensus of a stock's future earnings that the average
investor cannot disprove. Every investor is advised to have enough knowledge about the
stock market before making any investment decisions.
The study is done for the purpose of conducting fundamental analysis and technical
analysis of leading securities in the stock market. In the stock market share price of
companies are determined by the demand and supply forces operating in the market. These
demand and supply forces in turn are influenced by a number of fundamental factors as well
as certain psychological or emotional factors. The combined impact of all these factors is
reflected in the share price movement. The price movements of securities follow systematic
and certain consistent patterns. Past movements in the prices of shares help to identify trends
and pattern. It is useful for the prediction of future price movements. Security analysis is
conducted by analysing both the fundamental and technical aspects. The technical analysis
includes bar chart, Moving Average & RSI (Relative Strength Index).
SECURITY ANALYSIS
An examination and evaluation of the various factors affecting the value of a security
is known as Security analysis. Security analysis refers to the analysis of tradable financial
instruments. Financial instruments can be classified into debt securities, equities, or some
hybrid of the two, futures contracts and tradable credit derivatives are sometimes included.
Security analysis is typically divided into fundamental analysis, which relies upon the
examination of fundamental business factors such as financial statements, and technical
analysis, which focuses upon price trends and momentum. Two analytical models When the
objective of the analysis is to determine what stock to buy and at what price, there are two
basic methodologies.
 Fundamental Analysis
 Technical Analysis
Fundamental analysis maintains that markets may misprice a security in the short run
but that the "correct" price will eventually be reached. Profits can be made by trading the
mispriced security and then waiting for the market to recognize its "mistake" and re-price the
security. Technical analysis maintains that all information is reflected already in the stock
price, so fundamental analysis is a waste of time. Trends 'are your friend' and sentiment
changes predate and predict trend changes. Investors' emotional responses to price
movements lead to recognizable price chart patterns. Technical analysis does not care what
the 'value' of a stock is. Their price predictions are only extrapolations from historical price
patterns.
Investors can use both these different but somewhat complementary methods for
stock picking. Many fundamental investors use techniques for deciding entry and exit points.
Many technical investors use fundamentals to limit their universe of possible stock to 'good'
companies.
FUNDAMENTAL ANALYSIS
Fundamental analysis of a business involves analysing its financial statements and

health, its management and competitive advantages, and its competitors and markets. When
applied to futures and forex, it focuses on the overall state of the economy, interest rates,
production, earnings, and management. When analysing a stock, futures contract, or currency
using fundamental analysis there are two basic approaches one can use; bottom-up analysis
and top-down analysis. The term is used to distinguish such analysis from other types of
investment analysis, such as quantitative analysis and technical analysis. A method of
security valuation which involves examining the company's financials and operations,
especially sales, earnings, growth potential, assets, debt, management, products, and
competition. Fundamental analysis takes into consideration only those variables that are
directly related to the company itself, rather than the overall state of the market or technical
analysis data. The end goal of performing fundamental analysis is to produce a value that an
investor can compare with the security's current price in hopes of figuring out what sort of
position to take with that security. Fundamental analysis is performed on historical and
present data, but with the goal of making financial forecasts. There are several possible.
TECHNICAL ANALYSIS
Technical analysis is a study of the market data in terms of factors affecting supply
and demand schedules, namely, prices, volume of trading, etc. The technical analysis
believes that share prices are determined by the demand and supply forces operating the
market. These demand and supply forces are in turn influenced by a number of fundamental
factors as well as certain psychological and emotional factors. The combined impact of all
these factors is reflected in the share price movement. The technical analysis therefore
concentrates on the movement of share price. Technical analysis is the name given to
forecasting techniques that utilize historical share price data.
Technical analysis is a method of evaluating securities by analysing statistics generated

by market activity, such as past prices and volume. Technical analysts do not attempt to
measure a security's intrinsic value, but instead use charts and other tools to identify patterns
that can suggest future activity. Technical analysts believe that the historical performance of
stocks and markets are indications of future performance.
IT INDUSTRY
Information technology is playing an important role in India today and has

transformed India’s image from a slow-moving bureaucratic economy to a land of innovative.
The IT sector in India is generating 2.5 million direct employments. India is one of the
biggest IT capitals of the modern world and all the major players in the world IT sector are
present in the country.
The Indian IT sector is one of the ongoing shining sectors of the Indian economy
showcase with rapid development and promise. According to a report by NASSCOM called
“Perspective 2020: Transform India” the exports element of the Indian Industry is anticipated
to reach US$ 175 billion in revenue by 2020. India is considered as the home town to a huge
number of potential IT professionals who could congregate the demands and global industry
expectations with their eminent skill and expertise. IT sector in India is high cost efficient in
terms of skilled professionals as in comparison with the developed countries. This is also the
reason for increase in IT services like knowledge process outsourcing and business process
outsourcing have extended in the job market of Indian economy. The average purchasing
powers of the individual consumers have increased. With this aggregate demand and
aggregate supply has increased which resulted improvement in gross domestic production of
goods and services in the India. Therefore, IT sector plays a very important role in Indian
Economy as whole. This is attempt to study the fundamental analysis and technical
analysis on Tata Consultancy Services Ltd listed in NSE
1.2 REVIEW OF LITERATURE
DEBJIT CHAKRABORTY (1997)
In his study attempts to establish a relationship between major economic indicators

and stock market behaviour. It also analyses the stock market reactions to changes in the
economic climate. The factors considered are inflation, money supply, and growth in GDP,
fiscal deficit and credit deposit ratio. To find the trend in the stock markets, the BSE National
Index of Equity Prices (Natex) which comprises 100 companies was taken as the index. The
study shows that stock market movements are largely influenced by, broad money supply,
inflation, C/D ratio and fiscal deficit apart from political stability.
AVIJIT BANERJEE (1998)
The Fundamental Analysis and Technical Analysis to analyse the worthiness of the
individual securities needed to be acquired for portfolio construction. Technical Analysis
detects the most appropriate time to buy or sell the stock. It aims to avoid the pitfalls of
wrong timing in the investment decisions. He also stated that the modern portfolio literature
suggests 'beta' value P as the most acceptable measure of risk of scrip. The securities having
low P should be selected for constructing a portfolio in order to minimize the risks.
WARREN BUFFET
“I never attempt to make money on the stock market. I buy on the assumption that
they could close the market the next day and not reopen it for five years.” Instead of trying to
foresee the unforeseeable that is the market fluctuations, it makes more sense to focus on the
fundamentals and the intrinsic value of the desired asset.
EMMA J. SCHULTZ (2008)
Proposes an equity valuation model integrating Fundamental and Technical analysis,

they tend to recognize their potential as complements rather than as substitutes. Testing
confirms the complementary nature of Fundamental and Technical analysis by showing that
in spite of each performing in isolation models integrating both have superior explanatory
power Fundamental research focuses on identifying and analysing the factors that influence
security prices whereas technical analysis is solely concerned with analysing market
behaviour, without concern for trying to explain it. Given the sharp differences, it is easy to
understand why proponents tend to favour one over the other. The performance of the
securities that represent the company can be said to depend on the performance of the
company itself. However, as companies are a part of industrial and business sector, which in
turn are a part of overall economy, so even the economic and industry factors can affect the
investment decision.
VENKATESH C K AND MADHU TYAGI (2011)
The research paper titled, “Fundamental analysis as a method of share valuation in

comparison with technical analysis” detailed about different movement of share prices in
comparison with fundamental and technical analysis. It also emphasized on the market
capitalization and organizational structure.
STEPHAN H PENMAN (2007)
In his study found that Technical analysis includes a variety of forecasting techniques
such as chart analysis, pattern recognise ion analysis, seasonality and cycle analysis, and
computerized technical trading systems. However, academic research on technical analysis is
generally limited to techniques that can be expressed in mathematical forms, namely
technical trading systems, although some recent studies attempt to test visual chart patterns
using pattern recognition algorithms. A technical trading system consists of a set of trading
rules that result from parameterizations, and each trading rule generates trading signals (long,
short, or out of market) according to their parameter values. Several popular technical trading
systems are moving averages, channels, and momentum oscillators
THOMAS OBERLCHNER (2001)
Presents the findings of a questionnaire and an interview survey on the perceived

importance of Technical and Fundamental analysis among foreign exchange traders and
financial journalists in Frankfurt, London, Vienna and Zurich. Foreign Exchange traders
confirm that, out of both the forecasting approaches, technical analysis is more prominent
than the other.
SANJAY SEHGAL AND MEENAKSHI GUPTA (2005)
Presents the survey which aims at providing insights about the way technical traders
operate in the financial market and the trading strategies that they adopt. The survey covered
institutional and individual technical traders with a long and active trading record for the
Indian market. In this study also it is observed that the sample respondents tend to use
Technical analysis along with Fundamental analysis for security selection.
MICHAL PARNESS
Investors don't Make Money in the Stock Market. One reason the institutions make so
much money is that they are trading. They make money every time you buy or sell. They
make money whether you win or lose. That means that when you're investing, you're
basically just sitting there. You're not going anywhere. You're not making money as an
investor.
Trading the Trend: The Only Way to Make Money in the Market If you don't know
this already, "Trend Trading" means trading trends based on human emotions. Not lagging
indicators. Not complex statistical analysis and not Ph.D. level mathematical equations. With
trend trading, you look for market movement. That could mean stocks that are going to move
up or down during the course of a day (intraday). You'll play the gaps up and down, often
several days a week. The "Trend trading" means being aware and taking advantage of trends
like the run-ups that happen around earning sessions. These are trends that have worked time
and time again in the market. They consistently yield results.
PALEPU AND KRISHNA (2004)
He found that technical analysis has been extensively used among market participants
such as brokers, dealers, fund managers, speculators, and individual investors in the financial
industry. 3 Numetpus surveys indicate that practitioners attribute a significant role to
technical analysis. For example, futures fund managers rely heavily on computer-guided
technical trading systems, and about 30% to 40% of foreign exchange traders around the
world believe that technical analysis is the major factor determining exchange rates in the
short-run up to six months.
1.3 STATEMENT OF THE PROBLEM
The study will help to know what strategies the investor can adopt while trading in
equity market with the help of fundamental analysis. Fundamental Analysis is the upcoming
tool and helps the investor to know how the company is fundamentally strong and who want
to invest in a systematic manner in the competitive world, the study reveals the importance
for the investment decision which acts as guidance and helps them in decision making and
predicts the figure price of the scrips . Technical analysis is the study of price movement and
trend in markets in order to forecast future prices. Investment timing plays a crucial role for
trading in stock market trading. The investors face difficulty while identifying the
opportunities. so this analysis is directed towards the use of different tools of technical
analysis. Which help the investor to identify and decide when to buy or sell.
1.4 OBJECTIVES OF THE STUDY
 To implement my learning.
 To understand the stock exchange market.
 To study the various aspects of Indian Stock Market in detail.
 To examine the growth of IT sector in Indian capital market.
 To study fundamental and technical analysis of securities in the IT sector.
 To analyse the balance sheet and income statement in order to know the position of
the company.
 company’s performance on the basis of historical data.
 To do the fundamental analysis of the companies taken for comparison in order to
know the financial position of the company
 To analyse the Intrinsic value and forecast the future value through fundamental
analysis.
 To evaluate performance of TCS in Indian stock market with respect to its financial
performance.
1.5 SCOPE OF THE STUDY
The study is conducted on the TCS IT sector company listed in NSE. The company is
selected with respect to their market capitalization, revenue, sales and performance. The
study is to analyze the financial strength and future investment prospective of the key players
from IT sector of the economy. The fundamental analysis is to determine the value of the
shares. The technical analysis is to predict the future stock behavior. Rational investors
always focus on maximum return which bears minimum risk. Hence, for them, well
diversified equity funds are the superlative opportunity available for the investment.
1.6 RESEARCH METHODOLOGY
Research methodology is the systematic way to solve the research problem. It is a

system of models, procedures and techniques used to find the result of research problems. So,
the research methodologies not only take about research methods but also consider the logic
behind the method we use in the context of our research study.
SOURCE OF DATA
The present study is based on only secondary data which is collected from various
books, journals, annual reports of the company’s quarterly financial results and various other
articles & websites. The relevant data are collected from the past available financial Reports,
namely balance sheet, profit & loss Account and Corresponding schedules that were made
available by Yearly Review of the company.
TYPE OF STUDY
The research has been based on secondary data analysis. The study has been
exploratory as it aims at examining the secondary data for analyzing the previous researches
that have been done in the area of technical and fundamental analysis of stocks. The
knowledge thus gained from this preliminary study forms the basis for the further detailed
Descriptive research. In the exploratory study, the various technical indicators that are
important for analyzing stock were actually identified and important ones short listed.
1.7 LIMITATIONS
 Analysis is only a means not an end. The analysis has been done on the basis of my
own interpretations and up to my best knowledge but every analyst has his or her own
interpretations and suggestions.
 The non-monetary factors are not taken into consideration for the analysis
 No personal contacts with stakeholders of companies also a limitation for analyzing

the project.
 The biggest problem that I faced during the research study was that of data collection.
 The research will be only in the IT sector.
 The study depends more on secondary data rather than on primary data.
 We can't predict the prices of the stocks for long term.
 This technical analysis can 't be applicable to newly listed companies’ script.
CHAPTER - 2
INDUSTRY ANALYSIS
2.1 INTRODUCTION
2.2 EVOLUTION OF IT SECTOR IN INDIA
2.3 INFORMATION TECHNOLOGY SECTOR
2.4 INDIAN IT INDUSTRY PLAYERS
2.5 MAJOR DEVELOPMENTS IN INDIAN IT SECTOR
2.6 ROLE OF IT INDUSTRY
2.7 GOVERNMENT POLICY INITIATIVES
2.8 CHALLENGES OF IT INDUSTRY
2.9 CONTRIBUTION OF INFORMATION TECHNOLOGY IN INDIAN

ECONOMY
CHAPTER - 2
INDUSTRY ANALYSIS
2.1 INTRODUCTION
The Information Technology (IT) industry is an essential component of the

technology-driven knowledge economy of the 21st century. In fact, globally India has been
recognised as a knowledge economy due to its impressive IT industry. The IT industry
mainly encompasses IT services, IT-enabled services (ITES), e-commerce (online business),
Software and Hardware products. This industry is also instrumental in creating infrastructure
to store, process and exchange information for important business operations and other
organisations. The IT-based services and products have become indispensable for flourishing
any business enterprise and accomplishing success. This industry has a conspicuous impact in
improving the productivity of almost every other sector of the economy, it also has huge
potential for further accelerating the growth and economic development. Information
Technology not only contributed to the economic development of the country but it has also
made governance more efficient and responsive. It has made access to government services
and information easier and inexpensive. Information technology has also made management
and delivery of government service (such as health services, consumer rights, etc.) more
effective with enhancing transparency.
The growth of the IT industry in India is unprecedented across the economies of the
world. All the sub-sectors of this industry (hardware products have relatively seen less
progress) have made strides in revenue growth in the last two decades and fuelled the growth
of the Indian economy. The rapid advancement within the IT industry and liberalisation
policies such as reducing trade barriers and eliminating import duties on technology products
by the Government of India are instrumental in the growth of this industry. Also, various
other government initiatives like setting up Software Technology Parks (STP), Export
Oriented Units (EOU), Special Economic Zones (SEZ) and foreign direct investment (FDI)
have helped this industry in achieving a dominant position in the world IT
industry. Information technology (IT) industry in India has played a key role in putting India
on the global map. IT industry in India has been one of the most significant growth
contributors for the Indian economy.
2.2 EVOLUTION OF IT SECTOR IN INDIA
The evolution of the IT sector can be studied in 4 states as follows.
1) Stage 1 - Prior to 1980:
In the first stage of evolution, Indian IT sector was basically started with hardware
products and software industry did literally not exist in India until 1960. Government
protected the hardware sector through high tariff barriers and licensing. In the west, there was
a greater demand for software development because the inbuilt software with the systems was
insufficient to perform all the operations accurately. So, to earn more foreign exchange, the
Indian Government found out the potential of software sector. In 1972, the government
formulated a new software export scheme, in which it was decided to import hardware and
export software. TCS Ltd. became the first company to accept such scheme. In 1974, the
software export was started in India.
2) Stage 2 - 1980 to 1990:
During this stage, in spite of government initiatives, the software exports could not be
reached at the expected level because of two reasons. First, the export of software was
dependent on the imports of hardware and the procedural aspects ware too cumbersome.
Second, there were no proper infrastructural facilities for software development. In order to
encourage more participants in this sector, it was mandatory to reduce import duty and to
simplify import and export procedure. To overcome the above problem, a new software
policy was formulated. According to this policy, the import procedure was simplified and the
import duty for import on hardware for software developers was reduced. In 1986, the
government took some healthy corrective steps to develop IT sector. As a result, Indian
Government software policy and liberalized the IT sector. According to this policy, the
imports of hardware were de-licensed and were also made duty free for exporters. This policy
has reduced a number of entry barriers making the growth in this sector inevitable.
3) Stage 3 1990 to 2000:
This period has witnessed intensified competition in the IT sector. During this stage,
there were some significant changes in Indian economy, including trade liberalization,
relaxation in the entry barriers, opening up of Indian economy for foreign investments and
devaluation of rupee. Due to the liberalization, a flow of foreign investments was come in
India and MNCs in India were introduced. “Offshore Model”, “Onsite Model” and “Global
Delivery Model (GDM) were also introduced as part of their distinguished services.
4) Stage 4 Post 2000:
The global problems like Y2K, the dotcom crash and the recession in the US
economy has forced many US firms to utilize the services of the Indian firms. This has
resulted in placing the Indian IT industry on the global map. Post 2002-2003, the industry had
registered a robust growth rate. During this stage, there was in increase in the Indian client
base, large sized contracted and a strong global delivery model.
2.3 INFORMATION TECHNOLOGY SECTOR
The information technology sector can broadly be classified into:
1) IT- Software
These companies help in developing and implementation of different software for
their clients worldwide. This software could be for documentation, security services, banking
software’s etc.
2) IT Business Process Outsourcing (BPO)

Major Corporations across the world outsources their back-office operations to some
companies. E.g. Employee payroll for a US company’s global workforce is maintained by an
Indian BPO. Slowly the definition is expanding to Human resources, accounting, logistics,
legal processes etc.
3) IT- Hardware and peripherals
The stuff which can be actually seen and touched and would likely break if we threw
it out, is hardware. This would include laptops, desktops, Storage devices, Networking
devices, LCD, printers etc.
4) IT- Education
This segment provides training for employment in the other segments. This would
include companies providing various certification courses, like Java, Oracle etc. These
companies also provide training for employees in corporate sector. Recently, some
companies have also expanded this service to cater to schools and colleges.
MARKET SIZE INDIA’S IT INDUSTRY
250
200 191
181
167
154
146 143
US$ (Billion)
150
100
50
0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Years
(Data Source: IBEF, Ministry of Commerce & Industry, Government of India.)
 The IT & BPM industry’s revenue is estimated at US$ 194 billion in FY21, an
increase of 2.3% YoY.
 The sector is the largest employer within the private sector. In FY20, the industry
added 1.38 lakh new employees, taking the total employment to 44.7 lakh.
 The domestic revenue of the IT industry is estimated at US$ 45 billion and export
revenue is estimated at US$ 150billion in FY21.
 The market size of India’s IT & BPM sector is expected to grow to US$ 350 billion
by 2025 and BPM is expected to account for US$ 5055 billion out of the total
revenue.
 Spending on information technology in India is expected to reach US$ 144 billion in
2023.
 Outsourcing of large technology contracts by clients is expected to accelerate the
growth of the industry in FY20.
 The cloud market in India is expected to grow three-fold to US$ 7.1 billion by 2022
with the help of growing adoption of Big Data, analytics, artificial intelligence and
Internet of Things according to Cloud Next Wave of Growth in India report.
 India’s digital economy is estimated to reach US$ 1 trillion by 2025.
2.4 INDIAN IT INDUSTRY PLAYERS
Over the last few decades, India has become the home of the top IT companies. These
Indian IT companies have become the global leaders in the information technology (IT)
sector. This has contributed to the growth of technology not only in India but globally. Some
of the best Indian IT companies are part of the world’s best software companies.
INDIA’S TOP 3 IT COMPANY BASED ON REVENUE IN FY 2019-20
1) TATA CONSULTANCY SERVICES (TCS):

Tata Consultancy Service (TCS) is the Largest IT
company in India in terms of Revenue. TCS is the first
Indian IT company to have a market capitalization of
$100 billion and has over 420,000 employees. TCS is an IT services, consulting, and business
solutions provider that has been partnering with the world’s largest businesses in their
transformation journeys for the last fifty years. TCS, being one of the global leaders in the
sector, generates roughly 70% of the revenue for Tata Sons.
 Revenue: Rs 152,497 Cr
 Market Cap: Rs 845,337 Cr
 Employees: 420,000
 ROE: 35.98 %
 Sales Growth (3Yrs): 10.47 %
 Promoter holding: 72.05 %
2) INFOSYS
Infosys is an NYSE listed global consulting and IT services

company with more than 228,000 employees. It is India’s
second-largest IT company in terms of revenue for the
financial year 2019-20. It is one of the best IT companies in
India and first to be listed on NASDAQ. Over 37 years, the company has catalysed some of
the major changes that have led to India’s emergence as the global destination for software
services talent.
 Market Cap: Rs 282,028 Cr.
 Employees: 228,000
 ROE: 23.50 %
3) HCL TECHNOLOGIES
HCL Technologies, in terms of revenue, is one of

the third largest IT companies in India, which generated a
revenue of more than ₹21,000 crores over the last four
quarters and has a strong workforce of 117,000+ employees. The Company is a leading
global IT services company that helps global enterprises re-imagine and transform their
businesses through Digital technology transformation.
 Market Cap: Rs 153,370 Cr.
 ROE: 25.76 %
HCL Technologies has a global network of integrated co-innovation labs and global
delivery capabilities to provide holistic services in key industry verticals including Financial
Services, Telecommunications, Manufacturing, & Healthcare, Publishing, Media, Retail &
CPG, Entertainment, Oil & Gas, Energy & Utilities, Travel, Transportation & Logistics.
2.5 MAJOR DEVELOPMENTS IN INDIAN IT SECTOR
Indian IT's core competencies and strengths have attracted significant investment
from major countries. The computer software and hardware sector in India attracted
cumulative foreign direct investment (FDI) inflows worth US$ 69.29 billion between April
2000 and September 2020. The sector ranked 2nd in FDI inflows as per the data released by
Department for Promotion of Industry and Internal Trade (DPIIT). In FY21, computer
software and hardware topped FDI investments, accounting for 44% share of the total FDI
inflows of US$ 81.72 billion. Leading Indian IT firms like Infosys, Wipro, TCS and Tech
Mahindra are diversifying their offerings and showcasing leading ideas in block chain and
artificial intelligence to clients using innovation hubs and research and development centres
to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:
 In May 2021, Infosys entered a partnership with Majesco, a New Jersey-based

cloud insurance software solutions provider, to enable insurance companies to aid
in digital adoption and transformation across the insurance value chain.
 In May 2021, HCL Technologies (HCL) announced a multi-year contract with
Hitachi ABB Power Grids to build a new greenfield digital foundation as part of a
global transformation programme. Through this engagement, HCL will help
Hitachi ABB Power Grids establish a new, efficient and modern independent IT
organisation.
 In May 2021, Tata Consultancy Services (TCS) joined forces with VIAVI
Solutions, a network test, measurement and assurance solutions company, to
launch new test solutions that address the industry’s need for comprehensive
testing of next-generation disaggregated 5G radio access network (RAN)
products.
 In May 2021, Tata Consultancy Services (TCS) partnered with LAC Chain, an
initiative led by IDB Lab, the innovation laboratory of the Inter-American
Development Bank Group, to boost adoption of a block chain ecosystem across
Latin America and the Caribbean.
 In May 2021, IBM collaborated with 11 top-tier academic institutions, including
IIT Kharagpur and the Indian Institute of Science (IISc), Bangalore, to enable
‘over-the-cloud’ access to its quantum systems to boost advanced training and
research in the area of quantum computing.
 In May 2021, Infosys announced a definitive agreement to acquire Guide Vision,
a Service Now Elite Partner in Europe.
2.6 ROLE OF IT INDUSTRY

The IT industry can serve as a medium of e-governance, as it assures easy
accessibility to information. The use of information technology in the service sector improves
operational.
 efficiency and adds to transparency. It also serves as a medium of skill formation.

 Economies of scale for the information technology industry are high. The marginal
cost of each unit of additional software or hardware is insignificant compared to the
value addition that results from it.
 Unlike other common industries, the IT industry is knowledge-based.
 Efficient utilization of skilled labour forces in the IT sector can help an economy
achieve a rapid pace of economic growth.
 The IT industry helps many other sectors in the growth process of the economy
including the services and manufacturing sectors.
2.7 GOVERNMENT POLICY INITIATIVES
Some of the major initiatives taken by the Government to promote IT and ITeS sector
in India are as follows:
1) Foreign Direct Investment (FDI) Policy

As per the FDI policy, 100% FDI has been allowed in the software / IT
industry under the automatic route (i.e., there is no need to obtain prior government
approval).
2) India BPO Promotion Scheme (IBPS)
The India BPO Promotion Scheme (IBPS) has been approved under Digital
India Programme, to incentivize BPO/ITES operations across the country. The main
objective of IBPS is the creation of employment opportunities for the youth, by
promoting the IT/ITES Industry particularly by setting up the BPO/ITES operations
and promoting investment in the IT/ITES Sector in order to expand the base of IT
Industry and secure balanced regional growth.
3) Software Technology Parks of India (STPI)

Software Technology Parks of India, is an Autonomous Society set up by the
Ministry of Electronics and Information Technology (MEIT), Government of India in
1991, with the objective of encouraging, promoting and boosting the Software
Exports from India.
4) National Policy on Information Technology 2012

In order to promote further growth of the ICT industry, the government has
approved National Policy on Information Technology 2012 which aims to make at
least one individual in every household e-literate.
5) National Cyber Security Policy 2013

In 2013, the Ministry of Communication and Information Technology of the
Government of India had released the National Cyber Security Policy to protect the
information, such as personal information, financial/banking information, sovereign
data, etc.
2.8 CHALLENGES OF IT INDUSTRY
 Retention of employees is one of the biggest challenges for IT industry. Generally,

software companies hire people, train them but only to witness their resignation once they
are enough experienced in the job. It takes investment for any company to integrate
employees in the work flow.
 There is a huge gap in the skills the work demand and the skills job applicants have. Our
education system still needs to be revamped. And that affects the industries that seeks
highly skilled employees. Unemployment is high in our country, but the fact is that many
companies are not able to find talent to fill the positions.
 As IT industry takes care of the technical related things of all the other countries,
maintaining cyber security is one of the most important things for it. A small loophole can
do a lot of damage. We are witnessing several cyber-attacks these days. Cyber security is
one of the biggest challenge for any industry in the present times.
 Introduction of new technologies & the constantly changing technologies force IT
industry to upgrade their technology stack, which is a challenge for any IT industry. And
it’s also an opportunity.
 Integrating the new technologies is a must for IT companies to survive in the industry, but
that also comes with new issues to solve.
 As the technologies are constantly evolving, retraining of the employees at a regular
interval is a must for any IT company.
 Economic slowdown of the developed countries is another challenge for the IT
companies.
 Revenue sources of traditional IT services are shrinking. For example, a few years before
companies used to get paid for making basic websites. But now there are so many free
tools available online to do it for free.
2.9 CONTRIBUTION OF INFORMATION TECHNOLOGY IN INDIAN

ECONOMY:
The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT
industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT
industry recorded 138,000 new hires. According to STPI (Software Technology Park of
India), the software exports by its registered units increased by 7% YoY to reach Rs. 5 lakh
crore (US$ 67.40 billion) in FY21 from Rs. 4.66 lakh crore (US$ 62.82 billion) in FY20,
driven by rapid digitization and the IT industry's timely transition to remote working
environments that helped to keep up the industry’s growth amid coronavirus pandemics.
India is the world's largest sourcing destination with largest qualified talent pool of
technical graduates in the world. According to National Association of Software and Service
Companies (NASSCOM), the Indian IT industry’s revenue is estimated to reach US$ 194
billion in FY21, an increase of 2.3% YoY. The sector is the largest employer within the
private sector. This push towards cloud services has boosted hyper-scale data centre
investments, with global investments estimated to exceed US$ 200 billion annually by 2025.
In Budget 2021, the government has allocated Rs. 53,108 crores (US$ 7.31 billion) to the IT
and telecom sector.
The computer software and hardware sector in India attracted cumulative foreign
direct investment (FDI) inflows worth US$ 69.29 billion between April 2000 and December
2020. The sector ranked 2nd in FDI inflows as per the data released by Department for
Promotion of Industry and Internal Trade (DPIIT). The Government of India has extended tax
holidays to the IT sector for Software Technology Parks of India (STPI) and Special
Economic Zones (SEZs). As of February 2020, there were 421 approved SEZs across the
country, with 276 of them from IT & BPM and 145 as exporting SEZs.
CHAPTER - 3
COMPANY PROFILE
3.1 INTRODUCTION
3.2 BACKGROUND OF THE COMPANY
3.3 COMPANY PROFILE
3.4 NATURE OF BUSINESS
3.5 VISION, MISSION AND OBJECTIVES
3.6 SERVICES AND SOLUTIONS

3.7 COMPETITORS COMPANIES
3.8 ORGANISATION STRUCTURE
3.9 COMPANY’S PERFORMANCE
3.10 AWARDS & RECOGNITION
3.11 CSR ACTIVITIES
3.12 SHAREHOLDING PATTERN, REVENUE, NETWORTH AND PROFIT

OF TCS
3.13 COVID-19 IMPACT ON TCS
CHAPTER - 3
COMPANY PROFILE
3.1 INTRODUCTION
Tata Consultancy Services Ltd is an information technology (IT) company. The

company offers a range of IT services, outsourcing and business solutions. They also offer IT
infrastructure services, business process outsourcing services, engineering and industrial
services, global consulting and asset leveraged solutions. Their segments include banking,
financial services, insurance, manufacturing, retail and distribution, and telecom. The
company uses all these, and its industry leading suite of products and platforms to deliver
high quality, high impact solutions leveraging the latest technologies customers across the
world. TCS’s geographic footprint consists of North America, Latin America, the United
Kingdom, Continental Europe, Asia-Pacific, India and Middle-East & Africa.
The company is a part of Tata Group, one of India's most respected business
conglomerates and most respected brands. They are headquartered in Mumbai. They are
having 285 offices in 46 countries as well as 147 delivery centers in 21 countries and TCS
had a total of 58 subsidiary companies. The company shares are listed on the National Stock
Exchange and Bombay Stock Exchange of India. Tata Consultancy Services Ltd was
incorporated in the year 1968. Tata Sons Ltd established the company as division to service
their electronic data processing (EDP) requirements and provide management consulting
services. In the year 1971 they started their first international assignment.
3.2 BACKGROUND OF THE COMPANY
1) Stage 1: 1968 – 2004

Tata Consultancy Services was established in the year 1968. TCS is considered a
pioneer in the Indian IT industry. Despite un favourable government regulations, like the
License Raj, the company succeeded in establishing the Indian IT Industry. It began as the
"Tata Computer Centre", a division of the Tata Group, whose main business was to provide
computer services to other group companies. F C Kohli was its first General Manager.
The legendary JRD Tata was its first Chairman and was followed by luminaries such
as Nani Palkhivala. One of TCS' first assignments was to provide punch card services to a
sister concern, Tata Steel (then TISCO). It later bagged the country's first software project,
the Inter-Branch Reconciliation System (IBRS) for the Central Bank of India. It also provided
bureau services to Unit Trust of India, thus becoming one of the first companies to offer BPO
services.
In 1975, TCS delivered an electronic depository and trading system called SECOM
for Swiss company SIS Sega Inter Settle; it also developed System X for the Canadian
Depository System and automated the Johannesburg Stock Exchange. TCS associated with a
Swiss partner, TKS Teknosoft, which it later acquired.
In 1980, TCS established India's first dedicated software research and development
centre, the Tata Research Development and Design Centre (TRDDC) in Pune. In 1981, it
established India's first client-dedicated offshore development centre, set up for
clients Tandem. TCS later (1993) partnered with Canada-based software factory Integrity
Software Corp, which TCS later acquired.
In anticipation of the year 2000 (Y2K) bug and the launch of a unified European

currency (Euro), Tata Consultancy Services created the factory model for conversion and
developed software tools which automated the conversion process and enabled third-party
developer and client implementation. Towards the end of 1999, TCS decided to offer
Decision Support System (DSS) in the domestic market under its Corporate Vice President
and Transformation Head Subbu Iyer.
2) Stage 2: 2004 to Present
On 25 August 2004, TCS became a publicly listed company. In 2005, TCS became
the first India based IT services company to enter the bioinformatics market. In 2006, it
designed an ERP system for the Indian Railway Catering and Tourism Corporation. By 2008,
its e-business activities were generating over US$500 million in annual revenues.
TCS entered the small and medium enterprises market for the first time in 2011,
with cloud-based offerings. On the last trading day of 2011, it overtook RIL to achieve the
highest market capitalisation of any India-based company. In the 2011/12 fiscal year, TCS
achieved annual revenues of over US$10 billion for the first time. In May 2013, TCS was
awarded a six-year contract worth over ₹1100 crore to provide services to the
Indian Department of Posts. In 2013, the firm moved from the 13th position to 10th position
in the League of top 10 global IT services companies and in July 2014, it became the
first Indian company with over ₹5 lakh crore market capitalization.
In Jan 2015, TCS ends RIL's 23-year run as India's most profitable firm. In Jan 2017,
the company announced a partnership with Aurus, Inc., a payments technology company, to
deliver payment solutions for retailers using TCS Omni Store, a first of its kind unified store
commerce platform. In the same year, TCS China was associated as a joint venture with the
Chinese government.
TCS announced its FY19 Q3 results posting 24 percent year-on-year (YoY) rise in
profit at ₹8,105 crore. The stock plunged 2.5 percent intra-day as brokerages cut price target.
TCS received the 2019 American Business Awards from Four Stevies. On 8 October 2020,
TCS surpassed Accenture in market capitalization to become the world's most-valuable IT
company with a market cap of $144.73 billion. On 25 January 2021, TCS again
surpassed Accenture briefly, in market capitalization to become the world's most-valuable IT
company with a market cap of $170 billion. The same day, TCS became India's most
valuable company, surpassing Reliance Industries with a market cap of ₹ 12.55 lakh crore.
3.3 COMPANY PROFILE
Name of the company Tata Consultancy Services Ltd (TCS)

Type Information technology (IT) services and consulting
company.
Founded 1968; 53 years ago
Founder Tata sons
Headquarters Mumbai, Maharashtra, India
Area served World wide
Constitution Public Limited
websites www.tcs.com
Key People Natarajan Chandrasekaran (Chairman)
Rajesh Gopinatan (MD & CEO)
Revenue ₹1.62 trillion (2020)
Services Outsourcing, Consulting, Managed Services
3.4 NATURE OF BUSINESS
Tata Consultancy Services is an IT services, consulting and business solutions

organization that has been partnering with many of the world’s largest businesses in their
transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered,
integrated portfolio of business, technology and engineering services and solutions. This is
delivered through its unique Location Independent Agile™ delivery model, recognized as a
benchmark of excellence in software development.
A part of the Tata group, India’s largest multinational business group, TCS has over
488,000 of the world’s best-trained consultants in 46 countries. The company generated
consolidated revenues of US $22.2 billion in the fiscal year ended March 31, 2021, and is
listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock
Exchange) in India. TCS’ proactive stance on climate change and award winning work with
communities across the world have earned it a place in leading sustainability indices such as
the MSCI Global Sustainability Index and the FTSE4Good Emerging Index.
3.5 VISION, MISSION AND OBJECTIVES
Company vision, mission and objectives provide the foundation for the organisations.
These critical elements describe who they are, what they want to achieve and what will guide
our approach to business on daily basis. The firm is intended to provide the frame work to
incorporate these concepts into specific programmes and projects based on the following:
VISION
According to TCS, "Our vision is to decouple business growth and ecological
footprint from its operations to address the environment bottom-line. The green approach is
embedded in our internal processes and services offerings... From green buildings to green IT
to a green supply chain, our mantra is to grow sustainably and help our customers achieve
sustainable growth through our green solutions and service offerings."
MISSION STATEMENT
“To help customers achieve their business objectives by providing innovative, best-in-
class consulting, IT solutions and services & to make it a joy for all stakeholders to work with
us.”
OBJECTIVES
The company have set a number of strategic and tactical objectives that reflect their
mission, aim and collective goals:
 To establish the company as the best global organization for large-scale deployment
of financial management software solutions on the Cache platform.
 To establish a fully object-oriented component based application, which will enable
us to deliver robust software quicker and more efficiently than any competitor.
 To ensure that customers can operate their business software solutions on
infrastructures that match their needs.
3.6 SERVICES AND SOLUTIONS:
TCS is a leading IT services provider, with a wide breadth of services across the
entire Information technology spectrum. To know more about how TCS can help you identify
opportunities of improvement, build the roadmap to getting there & leverage technology to
make it possible, read more about our services & solutions:
1) Consulting.
2) IT Services.
3) BPO.
4) IT Infrastructure Services.
5) Engineering and Industrial Services.
6) Product Based Solutions.
OPERATIONS:
Tata Consultancy Services has 285 offices across 46 countries and 147 delivery
centers in 21 countries. On the same date, TCS had a total of 58 subsidiary companies.
TCS has Operations in the following locations:
1) India: Ahmedabad, Bengaluru, Baroda, Bhuvaneshwar, Chennai, Delhi, Gandhinagar,

Goa, Gurugram, Guwahati, Hyderabad, Bhopal, Indore, Jamshedpur, Kochi, Kolkata,
Lucknow, Mumbai, Nagpur, Patna, Pune, Thiruvananthapuram and Varanasi.
2) Asia (Excluding India): Bahrain, China, Israel, UAE, Hong Kong, Indonesia, Japan,
Malaysia, Philippines, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand and
Qatar.
3) Oceania: Australia
4) Africa: south Africa
5) Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Republic of
Ireland, Italy, Luxembourg, Netherland, Norway, Portugal, Spain, Sweden, Switzerland,
United Kingdom.
6) North America: Canada, Mexico, and united states.
7) South America: Argentina, brazil, Chile, Colombia, Ecuador, Peru, and Uruguay.
3.7 COMPETITORS COMPANIES
1) HCL
2) Infosys
3) Wipro
4) Tech Mahindra
5) Cognizant
LOOKING AHEAD
They are entering FY 2022 with strong growth momentum and with much better
visibility for future growth than they did last year, powered by a strong order book built up
throughout the year and a robust deal pipeline. In the medium and longer term, they see
strong structural growth drivers triggered by the multi-year technology refresh cycle that their
customers are embarking on, and their increased focus on G&T initiatives.
The G&T opportunity is very large, and yet to be fully scoped. The transformation
imperative will only strengthen over time, and as new technologies emerge, new
combinatorial possibilities will open up, driving further investments by their customers. So
they believe this market will see tremendous growth in the coming years. That puts us in a
very advantageous position. In addition to the large outsourcing opportunity which they
continue to dominate, they are now entering a large, growing opportunity that significantly
expands their addressable market. It is an exciting growth journey they are embarking on for
the next few years.
3.8 ORGANISATION STRUCTURE
Board of Directors
N. Chandrasekaran
(Chairman)
Rajesh Gopinathan
(Chief Executive Officer & Managing
Director)
OP Bhatt
(Director)
N. Ganapathy Subramaniam
(Chief Executive Officer and Executive
director)
Aarthi Subramanian
(Director)
Dr. Pradeep Kumar Khosla

(Director)
3.9 COMPANY’S PERFORMANCE
On a consolidated basis, the revenue for FY 2021 was 164,177 crores, higher by 4.6
percent over the previous year’s revenue of 156,949 crores. The profit after tax (PAT)
attributable to shareholders and non-controlling interests for FY 2021 and FY 2020 was
33,520 crores and 32,447 crores, respectively. The profit after tax (PAT) attributable to
shareholders for FY 2021 and FY 2020 was 33,388 crores and 32,340 crores, respectively.
3.10 AWARDS & RECOGNITION
 TCS was voted Overall Most Outstanding Company in India by investors across the
region in Asia money’s 2019 Asia's Outstanding Companies poll, the most number of
times over the last 10 years.
 TCS Interactive won the prestigious Red Dot: Best of the Best - Brands and
Communications Design 2019 Award for its game, Marathon City.
 TCS’ New York City Marathon App won Gold in the App of the Year category at the
Best in Biz Awards 2019 International.
 Ranked #22 on the Forbes 2000 list of the World's Best Regarded Companies in 2019.
 Named the Fastest Growing Brand of the Decade in IT Services globally by Brand
Finance. TCS’ brand value crossed $12.8 Billion in 2018, up 447% over the decade.
 Ranked #1 in the DQ Top 20 - a ranking of Indian IT companies that dealt with
disruptive technology forces in FY 2018.
 Ranked #1 for Customer Satisfaction for the sixth consecutive year in Europe’s largest
independent survey of IT service providers, carried out by White lane Research in
2018.
3.11 CSR ACTIVITIES
TCS has always recognized the responsibility Corporates should have towards the
wider communities they operate in. Be it girl child education in South Asia in collaboration
with UNICEF or adult literacy programs in South India, TCS believes in using IT as an
instrument for social development and change. Other TCS' community initiatives have been
in areas addressing environmental and civic problems; setting up and maintaining
infrastructure for urban beautification, pollution reduction and healthcare; waste management
in the office environment, tree plantation and water treatment.
3.12 SHAREHOLDING PATTERN OF TCS
The Shareholding Pattern of Tata Consultancy Services Ltd. presents the Promoter's
holding, Foreign institutions holding, Domestic institutions holdings, Retail holding, Mutual
funds holdings etc.
5% 3%
5%
Promoters
Foreign institurions
15%
Other domestic institutions
Retail and others
Mutual funds
72%
(Source of the data www.groww.in)

TATA CONSUTANCY SERVICES (TCS) REVENUE IN RUPEES
180,000
164,177
156,949
160,000
146,463
All values are in Rs. Cr
140,000
123,104
117,966
120,000
100,000
80,000
60,000
40,000
20,000
0
2017 2018 2019 2020 2021
Years
TATA CONSULTANCY SERVICES NET WORTH
90,000
89,446
89,000
88,000
87,000
86,214 86,433
86,000
85,000 85,128
84,000 84,126
83,000
82,000
81,000
2017 2018 2019 2020 2021
TCS's NETWORTH
Years

TCS’S PROFIT
35,000 32,430
31,472 32,340
30,000
26,289 25,826
25,000
20,000
15,000
10,000
5,000
0
2017 2018 2019 2020 2021
TCS's PROFIT Years
2
TATA CONSULTANCY
SERVICES LTD.
Opportunities
Growth in Service
Markets Globally
The global market for IT
services has exceeded $697.7
billion in 2017 and is projected
to
grow by $947 billion by
CAGR by 6.3 percent in 2017-
22. Infrastructure services
represented
45.1% of the global IT
services market ' total
market value, followed by
30.9% application
service and 24% BPO services
in 2017 (MarketLine,2019,
para. 8)
In regional terms, the US
accounted for 37,5% of the
overall IT services industry,
led by
Europe, 31,7%, Asia Pacific,
24,2%, the Middle East, 0,2%
and the rest of the world, 6,4%
in 201
7 (MarketLine,2019, para. 8)
2
TATA CONSULTANCY
SERVICES LTD.
Opportunities
Growth in Service
Markets Globally
to
represented
30.9% application
para. 8)
led by
Europe, 31,7%, Asia Pacific,
in 201
2
TATA CONSULTANCY
SERVICES LTD.
Opportunities
Growth in Service
Markets Globally
to
represented
30.9% application
para. 8)
led by
Europe, 31,7%, AsiaPacific,
in 201
OPPORTUNITIES
The global market for IT services has exceeded $697.7 billion in 2017 and is
projected to grow by $947 billion by CAGR by 6.3 percent in 2017-22. Infrastructure
services represented 45.1% of the global IT services market ' total market value, followed by
30.9% application service and 24% BPO services in 2017 (Market Line, 2019)
In regional terms, the US accounted for 37,5% of the overall IT services industry, led
by Europe, 31,7%, AsiaPacific, 24,2%, the Middle East, 0,2% and the rest of the world, 6,4%
in 2017 (Market Line, 2019)
3.13 COVID-19 IMPACT ON TCS
The COVID-19 pandemic has emerged as a global challenge, creating disruption

across the world. Global solutions are needed to overcome the challenges - businesses &
business models have transformed to create a new work order. The swift transition to remote
working was facilitated by the Secure Borderless Workspaces™ model adopted by the
Company.
The physical and emotional wellbeing of employees continues to be a top priority for the
Company, with several initiatives to support employees and their families during the
pandemic. The Company has invested in setting up medical helplines, ambulance services
and first line Covid Care Centres within TCS premises, and has also extended counselling
and self-help services providing mental & emotional support to employees. The Company
has reimagined employee engagement, which transcends geographic barriers by embracing
virtual technologies and embraces our diverse workforce. Initiatives like the #OneTCS
channel, designed to reduce stress and the feeling of isolation, hosted inspirational leaders,
mental health experts, virtual town halls and a global talent hunt competition to boost morale
of employees.
CHAPTER - 04
CONCEPTUAL FRAMEWORK
4.1 INRODUCTION
4.2 HISTORY OF INDIAN STOCK MARKET
4.3 FUNDAMENTAL ANAYSIS
4.4 TECHNICAL ANALYSIS
4.5 DOW THEORY

4.6 TECHNICAL ANALYSIS TOOLS
CHAPTER - 04
CONCEPTUAL FRAMEWORK
4.1 INRODUCTION
A stock exchange is an exchange where stock brokers and traders can buy and sell
shares, bonds, and other securities. many large companies have their stocks listed on a stock
exchange. This makes the stock more liquid and thus more attractive to many investors. The
exchange may also act as a guarantor of settlement. These and other stocks may also be
traded "over the counter" (OTC), that is, through a dealer. Some large companies will have
their stock listed on more than one exchange in different countries, so as to attract
international investors. Stock exchanges may also cover other types of securities, such as
fixed-interest securities (bonds) or (less frequently) derivatives, which are more likely to be
traded OTC.
Trade in stock markets means the transfer (in exchange for money) of a stock or
security from a seller to a buyer. This requires these two parties to agree on a
price. Equities (stocks or shares) confer an ownership interest in a particular company.
Participants in the stock market range from small individual stock investors to larger
investors, who can be based anywhere in the world, and may
include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders
may be executed on their behalf by a stock exchange trader.
A potential buyer bids a specific price for a stock, and a potential seller asks a specific
price for the same stock. Buying or selling at the Market means you will accept any ask price
or bid price for the stock. When the bid and ask prices match, a sale takes place, on a first-
come, first-served basis if there are multiple bidders at a given price. The purpose of a stock
exchange is to facilitate the exchange of securities between buyers and sellers, thus providing
a marketplace. The exchanges provide real-time trading information on the listed securities,
facilitating price discovery.
The total market capitalization of equity backed securities worldwide rose from

US$2.5 trillion in 1980 to US$68.65 trillion at the end of 2018. As of December 31, 2019, the
total market capitalization of all stocks worldwide was approximately US$70.75 trillion. As
of 2016, there are 60 stock exchanges in the world. Of these, there are 16 exchanges with
a market capitalization of $1 trillion or more, and they account for 87% of global
market capitalization. The Bombay Stock Exchange (BSE), the National Stock Exchange
(NSE) and the Calcutta Stock Exchange (CSE) are the three large stock exchanges of Indian
Stock Market & London stock exchange is oldest stock market in the world.
4.2 HISTORY OF INDIAN STOCK MARKET:
The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of BSE in 1875. BSE is the oldest stock market in
India. The history of India stock trading starts with 318 persons taking membership in Native
share and Stock Brokers Association, which we knowow by the name Bombay Stock
Exchange or BSE in short. In 1965, BSE got permanent recognition from the Government of
India. BSE and NSE represent themselves as synonyms of India stock market. The history of
India stock market is almost the same as the history of BSE.
The regulations and reforms been laid down in the equity market has resulted in rapid
growth and development. Basically the growth in the equity market is largely due to the
effective intermediaries. The broking houses not only act as an intermediate link for the
equity market but also for the commodity market, the foreign currency exchange market and
many more. The broking houses have also made an impact on foreign investors to invest in
India to certain extent. In the last decade, the Indian brokerage industry has undergone a
dramatic transformation. Large and fixed commissions have been replaced by wafer thin
margins, with competition driving down the brokerage fees, in some cases to a few basis
points. There have also been major changes in the way the business is conducted. The scope
of services has enhanced from being equity products to a wide range of financial services.
National Stock Exchange of India Limited (NSE)
NSE is the leading stock exchange of India, located in Mumbai, Maharashtra. It is

under the ownership of some leading financial institutions, Banks, and Insurance
companies. [5]NSE was established in 1992 as the first dematerialized electronic exchange in
the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.
National Stock Exchange has a total market capitalization of more than US$3 trillion, making
it the world's 10th-largest stock exchange as of May 2021.[4] NSE's flagship index, the NIFTY
50, a 50 stock index is used extensively by investors in India and around the world as a
barometer of the Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.
However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is
actually derived from the stock exchanges in India.
Bombay Stock Exchange (BSE)
The Bombay Stock Exchange (BSE) is the first and largest securities market in India
and was established in 1875 as the Native Share and Stock Brokers' Association. Based in
Mumbai, India, the BSE lists close to 6,000 companies and is one of the largest exchanges in
the world, along with the New York Stock Exchange (NYSE), Nasdaq, London Stock
Exchange Group, Japan Exchange Group, and Shanghai Stock Exchange. The BSE is the 9th
largest stock exchange with an overall market capitalization of more than ₹2,18,730 billion
on as of May 2021.
The BSE has helped develop India's capital markets, including the retail debt market,
and has helped grow the Indian corporate sector. The BSE is Asia's first stock exchange and
also includes an equities trading platform for small-and-medium enterprises (SME). BSE has
diversified into providing other capital market services including clearing, settlement,
and risk management.
STOCK ANALYSIS
Stock analysis refers to the method that an investor or trader uses to evaluate and investigate
a particular trading instrument, investment sector, or the stock market as a whole. Stock
analysis is also called equity analysis or market analysis. Investors or traders make buying or
selling decisions based on stock analysis information. Stock analysis helps traders to gain an
insight into the economy, stock market, or securities. It involves studying the past and present
market data and creating a methodology to choose appropriate stocks for trading. Stock
analysis also includes the identification of ways of entry into and exit from the investments.
4.3 FUNDAMENTAL ANAYSIS
Fundamental analysis is the examination of the underlying forces that affect the well-
being of the economy, industry groups and companies. As with most analysis, the goal is to
develop a forecast of future price movement and profit from it. At the company level,
fundamental analysis may involve examination of financial data, management, business
concept and competition. At the industry level, there might be an examination of supply and
demand forces of the products. For the national economy, fundamental analysis might focus
on economic data to assess the present and future growth of the economy. To forecast future
stock prices, fundamental analysis combines economic, industry, and company analysis to
derive a stock’s fair value called intrinsic value. If fair value is not equal to the current stock
price, fundamental analysts believe that the stock is either over or under valued. As the
current market price will ultimately gravitate towards fair value, the fair value should be
estimated to decide whether to buy the security or not. By believing that prices do not
accurately reflect all available information, fundamental analysts look to capitalize on
perceived price discrepancies.
Fundamental Analysis is a method of evaluating a security by attempting to measure

its intrinsic value by examining related economic, financial and other qualitative and
quantitative factors. Fundamental analysts attempt to study everything that can affect the
security’s value, including macroeconomic factors (like the overall economy and industry
conditions) and individual specific factors (like the financial condition and management of
companies).
Three Phases of Fundamental Analysis
1) Understanding of the macro-economic environment and developments (Economic

Analysis)
2) Analysing the prospects of the industry to which the firm belongs (Industry Analysis)
3) Assessing the projected performance of the company (Company Analysis)
The three phase examination of fundamental analysis is also called as an EIC

(Economy-Industry-Company analysis) framework or a top-down approach.
Here the financial analyst first makes forecasts for the economy, then for industries
and finally for companies. The industry forecasts are based on the forecasts for the economy
and in turn, the company forecasts are based on the forecasts for both the industry and the
economy. Also in this approach, industry groups are compared against other industry groups
and companies against other companies. Usually, companies are compared with others in the
same group. For example, a telecom operator (Spice) would be compared to another telecom
operator not to an oil company.
Thus, the fundamental analysis is a 3 phase analysis of
A) The Economy
B) The Industry
C) The Company
Phase Nature of Purpose Tools And

analysis Techniques
To access the general
FIRST Economic Analysis economic situation of Economic indicators
the nation.
To assess the prospects Industry life cycle
SECOND Industry Analysis of various industry analysis, Competitive
groupings. analysis of industries etc.
To analyse the Analysis of Financial
Financial and Non- aspects: Sales,
THIRD Company Analysis financial aspects of a Profitability, EPS etc.
company to determine Analysis of Non-financial
whether to buy, sell or aspects: management,
hold the shares of a corporate image, product
company. quality etc.
ECONOMIC ANALYSIS:
The Economic Analysis aims at determining if the economic climate is conclusive and
is capable of encouraging the growth of business sector, especially the capital market. When
the economy expands, most industry groups and companies are expected to benefit and grow,
When the economy declines, most sectors and companies usually face survival problems.
Hence, to predict share prices, an investor has to spend time exploring the forces operating in
overall economy. Exploring the global economy is essential in an international investment
setting The selection of country for investment has to focus itself to examination of a national
economic scenario, it is important to predict the direction of the national economy because
economic activity affects corporate profits, not necessarily through tax policies but also
through foreign policies and administrative procedures.
 Government Policy
 The political equation
 Inflation
 Interest Rates
 Taxation
INDUSTRY ANALYSIS:
The second face of fundamental analysis consists of a detailed analysis of a specific

industry; its characteristics, its past record, its future prospects. The purpose of industry
analysis is to identify those industries which are likely to grow in the future and to invest in
equity share of companies selected from such industries.
Here are factors that Investors should consider while analysing an industry.
 Competitiveness in the industry:

 Government Regulations:
 Stage of the industry life cycle
 Investors preference over the industry
 Performance of the industry
 Labour conditions
 Technological innovations
 Industry share prices relative to industry earnings
 Demand Supply Gap
In Industry analysis, Information technology industry is studied in terms of its

problems and prospects. India is considered as world’s leading sourcing destination for the
information technology industry, as ion figures it comes to just about 67 percent of the US $
124-130 billion market. The IT industry has shaped momentous command in education
sector, in particular for engineering and computer sciences.
Information Technology is fragmented industry and not a concentrated one. In

fragmented industries, there is absence of big dominant players such that small companies
also prevail in the market but it is difficult for one company to establish a vigorous operation.
Information technology industry is a fragmented industry, which emphasis on free entry and
exit of firms into the sector. Even though such a situation prevails in the market, the major
role is played by the big giant corporate like IBM, Infosys, TCS, Wipro and others.
Government can make their interference into the technology sector which has its own effect
in the industry. Government interference and intervention can be explained in two
fundamental parts i.e. directly and indirectly. Direct method means support given by the
government for the development of new technology and market mechanisms to present
incentives for change done by the industry. On the other hand, indirect approach deal with the
persuasion to regulate project standards and direct government purchases by the IT sector.
Porter’s five force models consist of five major indicators to analyse an industry i.e. existing
competition, availability of substitutes, threat of new entrants, bargaining power of suppliers
and bargaining power of customers.
1. EXISTING COMPETITION: IT services such as network management services, data-

center services, infrastructure management services, application development and
maintenance etc. which leads to competition. Many companies in the industry are
offering the similar services and therefore difficult to differentiate each other.
2. BARGAINING POWER OF CUSTOMERS: Buyers bargaining power is large and
chance of pressure on rates prevails in the industry. Both the international and Indian
IT firms have negated the advantages all the way through global delivery and mature
procurement.
3. BARGAINING POWER OF SUPPLIERS: Supplier’s bargaining power is very low
and as high standardization prevails in the industry there is modest chance for the
suppliers to have any thump.
4. THREAT OF NEW ENTRANTS: Industry is also characterized by high people
dependence and consequently can observe veterans isolate from prevailing companies
to devote in new ventures. The innovative technology allows the opportunity of
entrants to new niche players which are not dependent on experience constraints or
size.
5. AVAILABILITY OF SUBSTITUTES: IT sector has been a mixed bag for newer
services as well since internal specialization is low and most of the work is outsourced
generally. Therefore, there is no substantial substitute to information technology
industry from internal perspective, and are thinner in numbers and significance.
COMPANY ANALYSIS:
At the company level, fundamental analysis may involve examination of financial

data, management, business concept and competition. Financial statements are the medium
by which a company discloses information concerning its financial performance. The
fundamental analyst use the quantitative information gleaned from financial statements to
make Investments decisions. An investor should be aware of the financial performance of the
company to know the risk and return associated with particular share.
The main techniques of financial analysis are:
1. Financial Statements of The Company: Records that outline the financial activities of
a business, an individual or any other entity. Financial statements are meant to present the
financial information of the entity in question as clearly and concisely as possible for both
the entity and for readers. Financial statements for businesses usually include: income
statements, balance sheet, statements of retained earnings and cash flows, as well as other
possible statements
2. Common Size Statement: Financial statements when read with absolute figures are not
easily understandable, sometimes they are even misleading. It is, therefore, necessary that
figures reported in these statements, should be converted into percentage to some
common base. In profit and loss account sales figure is assumed to be equal to 100 and all
other figures are expressed as percentage of sales. Similarly, in balance sheet the total of
assets or liabilities is taken as 100 and all the figures are expressed as percentage of the
total. This type of analysis is called vertical analysis. This is a static relationship because
it is a study of relationship existing at a particular date. The statements so prepared are
called common-size statements
3. Fund Flow Statement: Fund Flow Statement is prepared to find out financial changes
between two dates. It is a technique of analysing financial statements. With the help of
this statement, the amount of change in the funds of a business between two dates and
reasons thereof can be ascertained. The investor could see clearly the amount of funds
generated or lost in operations. These reveal the real picture of the financial position of
the company.
4. Cash Flow Statement: The cash flow statement shows how much cash comes in and
goes out of the company over the quarter or the year. At first glance, that sounds a lot like
the income statement in that it records financial performance over a specified period. But
there is a big difference between the two.
5. Ratio Analysis: Ratio is a relationship between two figures expressed mathematically. It
is quantitative relationship between two items for the purpose of comparison. Ratio
analysis is a technique of analysing financial statements. It helps in estimating financial
soundness or weakness. Ratios present the relationships between items presented in profit
and loss account and balance sheet. It summaries the data for easy understanding,
comparison and interpretation. The ratios are divided in the following group:
 Liquidity Ratios
 Asset Turnover Ratios
 Profitability ratios
6. Earnings per share (EPS): The portion of a company's profit allocated to each
outstanding share of common stock. Earnings per share serve as an indicator of a
company's profitability.
7. Return on Total Assets (ROA): A ratio that measures a company's earnings before
interest and taxes (EBIT) against its total net assets. The ratio is considered an indicator
of how effectively a company is using its assets to generate earnings before contractual
obligations must be paid.
8. Return on Equity (ROE): The amount of net income returned as a percentage of

shareholder’s equity. Return on equity measures a corporation's profitability by revealing
how much profit a company generates with the money shareholders have invested.
9. Dividend per Share (DPS): The sum of declared dividends for every ordinary share
issued. Dividend per share (DPS) is the total dividends paid out over an entire year
(including interim dividends but not including special dividends) divided by the number
of outstanding ordinary shares issued.
4.4 TECHNICAL ANALYSIS
Technical analysis is an analysis methodology for forecasting the direction

of prices through the study of past market data, primarily price and volume. Technical
Analysis is important to form a view on the likely trend of the overall market, and it is helpful
to have some idea of how to go about selecting individual stocks. Naturally, all investors
would like their investments to appreciate rapidly in price, but stocks, which may satisfy this
wish, tend to accompanied by a substantially greater amount of risk then many investors are
normally willing to accept. However, it is important to understand that investors can be very
conscious when it comes to stock ownership.
Technical analysis is the use of numerical series generated by market activity, such as
price and volume, to predict future price trends. The techniques applied to any market with a
comprehensive price history. Primarily, but not exclusively, technical analysis is conducted
by studying charts of past price movement. Many different methods and tools are used in
technical analysis, but they all rely on the assumption that price patters and trends exist in
markets, and that they can be identified and exploited.
Technical analysis or charting is considered to be as a supplement to Fundamental

Analysis of securities. As an approach to investment analysis technical analysis is radically
different from fundamental analysis. While the fundamental analysts believe that the market
is 90% logical and 10% psychological, the technical analysis assumes that its 90%
psychological and 10% logical. Technical analysis can be applied to any market with a
comprehensive price history. The premises of technical analysis were derived from empirical
observations of financial markets over hundreds of years.
4.5 DOW THEORY
The Dow Theory, originally proposed by Charles Dow in 1900 is one of the oldest
technical methods still widely followed. The basic principles of technical analysis originate
from this theory. According to Charles Dow “The market is always considered as having
three movements, all going at the same time. The first is the narrow movement from day to
day. The second is the short swing, running from two weeks to a month or more and the third
is the main movement, covering at least four years in its duration”. The Theory advocates that
stock behaviour is 90% psychological and 10% logical. It is the mood of the Crowd which
determines the way in which prices move and the move can be gauged by analysing the price
and volume of transactions.
The Dow Theory only describes the direction of market trends and does not attempt to
forecast future movements or estimate either the duration or the size of such market trends.
The theory uses the behaviour of the stock market as a barometer of business conditions
rather than as a basis for forecasting stock prices themselves. It is assumed that most of the
stocks follow the underlying market trend, most of the times. A trend should be assumed to
continue in effect until such time as its reversal has been definitely signalled. The end of a
bull market is signalled when a secondary reaction of decline carries prices lower than the
level recorded during the earlier reaction and the subsequent advance fails to carry prices
above the top level of the preceding recovery. The end of a bear market is signalled when an
intermediate recovery carries prices to a level higher than the one registered in the previous
advance and the subsequent decline halts above the level recorded in the earlier reaction.
4.6 TECHNICAL ANALYSIS TOOLS:
Technical analysis can be conditionally divided into some main parts such as:
 Charts
 Technical indicators
CHARTING
Charting is the basic tool in technical analysis, which provides visual assistance in
defecting changing pattern of price behaviour. The technical analyst is sometimes called the
Chartist because of importance of this tool. The Chartists believe that stock prices move in
fairly persistent trends. There is an inbuilt inertia, the price movement continues along a
certain path (up, down or sideways) until it meets an opposing force due to demand-supply
changes. Chartists also believe that generally volume and trend go hand in hand. When a
major ‘up’ trend begins, the volume of trading increases and also the price and vice-versa.
The essence of Chartism is the belief that share prices trace out patterns over time. These are
a reflection of investor behaviour and it can be assumed that history tends to repeat itself in
the stock market.
 Line Chart
 Bar Chart
 Point and figure Chart
1. Line Charts: The simplest form of chart is a line chart. Line charts are simple graphs
drawn by plotting the closing price of the stock on a given day and connecting the points
thus plotted over a period of time. Line charts take no notice of the highs and lows of
stock prices for each period.
2. Bar Charts: It is a simple charting technique. In this chart, prices are indicated on the
vertical axis and the time on horizontal axis. The market or price movement for a given
session (usually a day) is represented on one line. The vertical part of the line shows the
high and low prices at which the stock traded or the market moved. A short horizontal
tick on the vertical line indicates the price or level at which the stock or market closed:
3. Point and Figure Chart (PFC): Though the point and figure chart is not as
commonly used as the other two charts, it differs from the others in concept and
construction. In PFC there is no time scale and only price movements are plotted. As a
share price rises, a vertical column of crosses is plotted. When it falls, a circle is plotted in
the next column and this is continued downward while the price continues to fall.
TRENDS
A trend can be defined as the direction in which the market is moving. Up trend is the
upward movement and downtrend is the downward movement of stock prices or of the
market as measured by an average or index over a period of time, usually longer than six
months. Trend lines are lines that are drawn to identify such trends and extend them into the
future. These lines typically connect the peaks of advances and bottoms of declines.
Sometimes, an intermediate trend that extends horizontally is seen.
Trends are of three types

1. Uptrend
2. Downtrend.
3. Horizontal trend.
MOVING AVERAGE ANALYSIS
The statistical method of moving averages is also used by technical analysts for
forecasting the prices of shares. While trends in share prices can be studied for possible
patterns, sometimes it may so happen that the prices appear to move rather haphazardly and
be very volatile. Moving average analysis can help under such circumstances. A moving
average is a smoothed presentation of underlying historical data. It is a summary measure of
price movement which reduces the distortions to a minimum by evening out the fluctuations
in share prices. The underlying trend in prices is clearly disclosed when moving averages are
used.
To construct a moving average the time span of the average has to be determined. A
10 day moving average measures the average over the previous 10 trading days, a 20 day
moving average measures the average values over the previous 20 days and so on. Regardless
of the time period used, each day a new observation is included in the calculation and the
oldest is dropped, so a constant number of points are always being averaged.
RELATIVE STRENGTH
The empirical evidence shows that certain securities perform better than other
securities in a given market environment and this behaviour remains constant over time.
Relative strength is the technical name given to such securities by the technical analysts
because these securities have stability and are able to withstand both depression and peak
periods. Investors should invest in such securities, because these have constant strength in the
market. The relative strength analysis may be applied to individual securities or to whole
industries or portfolios consisting of stock and bonds. The relative strength can be calculated
by: i. Measuring the rate of return of securities ii. Classifying securities iii. Finding out the
high average return of securities iv. Using the technique of ratio analysis to find out the
strength of an individual security.
RESISTANCE AND SUPPORT LEVELS
The peak price of the stock is called the resistance area. Resistance level is the price
level to which the stock or market rises and then falls repeatedly. At this level, selling
increases which causes the price fall. Support level shows the previous low price of the stock.
It is a price level to which a stock or market price falls or bottom out repeatedly and then
bounce up again. Demand for the stock increases as the price approaches a support level. The
buying pressure or the demand supports the price of stock preventing it from going lower
SUPPORT
Support levels indicate the price where the most of investors believe that prices will move
higher.
RESISTANCE
Resistance levels indicate the price at which the most of investors feel prices will move
lower.
CANDLESTICK CHARTS
The creation of candlestick charts is widely credited to an 18th century Japanese rice

trader Munehisa Homma. His prowess at gaming the rice trading markets was legendary. It is
believed his candlestick methods were further modified and adjusted through the ages to
become more applicable to current financial markets.
A candlestick is composed
of three parts; the upper shadow,
lower shadow and body. The body
is coloured green or red. Each
candlestick represents a segmented
period of time. The candlestick data
summarizes the executed trades
during that specific period of time. For example, a 5-minute candle represents 5 minutes of
trades data. There are four data points in every candlestick: the open, high, low and close.
The open is the very first trade for the specific period and the close is the very last trade for
the period. The open and close is considered the body of the candle. The high is the highest
priced trade and low is the lowest price trade for that period.
Every candlestick tells a story of the showdown between the bulls and the bears,
buyers and sellers, supply and demand, fear and greed. It is important to keep in mind that
most candle patterns need a confirmation based on the context of the preceding candles and
proceeding candle.
1. Bullish Candle
Green is an example of a bullish pattern and here the stock opened at (or near) low
and closed near its high.
2. Bearish Candle
Red is an example of a bearish pattern and here the stock opened at (or near) high
and dropped substantially to close near its low
3. Hammer Candle
This is called a Hammer, which is a bullish pattern, and it only occurs after the
stock price has dropped for several days.
4. Star Candle
This is called a Star, typically indicating a reversal or indecision situation.
CHAPTER – 5
DATA ANALYSIS AND INTERPRETATION
5.1 INTRODUCTION
5.2 FUNDAMENTAL ANALYSIS
5.3 FINANCIAL PERFORMANCE OF TCS

5.4 TEHNICAL ANALYSIS
5.5 TCS SHARE TECHNICAL STUDIES ARE AVAILABLE IN SELECT
TIME FRAMES
CHAPTER – 5
DATA ANALYSIS AND INTERPRETATION
5.1 INTRODUCTION
Data analysis is defined as a process of cleaning, transforming, and modelling data to

discover useful information for business decision making. The purpose of Data Analysis is to
extract useful information from data and taking the decision based upon the data analysis.
1) Data Analysis Process
The Data Analysis Process is nothing but gathering information by using a proper
application or tool which allows you to explore the data and find a pattern in it. Based on that
information and data, you can make decisions, or you can get ultimate conclusions.
Data Analysis consists of the following phases:
 Data Requirement Gathering

 Data Collection
 Data Analysis
 Data Interpretation
 Data Visualization
2) Data Interpretation
Data interpretation is the process of reviewing data through some predefined

processes which will help assign some meaning to the data and arrive at a relevant
conclusion. It involves taking the result of data analysis. Data analysis is the process of
ordering, categorizing, manipulating, and summarizing data to obtain answers to research
questions. It is usually the first step taken towards data interpretation. It is evident that the
interpretation of data is very important, and as such needs to be done properly. Therefore,
researchers have identified some data interpretation methods to aid this process.
5.2 FUNDAMENTAL ANALYSIS
TCS’ COMPARATIVE BALANCE SHEET ANALYSIS
A comparative balance sheet is a statement that shows the financial position of an

organization over different periods for which comparison is made or required. The financial
position is compared with 2 or more periods to depict the trend, direction of change, analyse
and take suitable actions A comparative balance sheet is a statement that shows the financial
position of an organization over different periods for which comparison is made or required.
The financial position is compared with 2 or more periods to depict the trend, direction of
change, analyse and take suitable actions.
COMPARATIVE BALANCE SHEET ANALYSIS OF TATA CONSULTANCY

SERVICES AS ON 31ST MARCH 2020 & 2021
TCS (2020) TCS (2021) INCREASE OR DECREASE

PARTICULARS IN 2020 OVER 2021
Amount Rs. Amount Rs. Amount Rs. Percentage
(crores) (crores) (crores) (%)
LIABILITIES
Share Capital 375 370 − 5.00 − 1.33
Reserve & surplus 83,751 86,063 + 2,312.00 + 2.76
Current liabilities 27,060 34,155 + 7,095.00 + 26.21
Other liabilities 9,713 10,171 + 458.00 + 4.71
TOTAL LIABILITIES 1,20,899 1,30,759 + 9,860.00 + 8.15
ASSETS
Fixed assets 20,124 20,149 + 25.00 + 0.12
Current assets 90,237 99,280 + 9,043.00 + 10.02
Other 10,538 11,330 + 792.00 + 7.51
TOTAL ASSETS 1,20,899 1,30,759 + 9,860.00 + 8.15
INTERPRETATION:
 The above table shows the share capital of TCS, it has been reduced by 1.33% in the
year 2021
 The current assets have increased to 10.02% when compared to previous years
because of increase in trade receivable and current investment. And this shows a good
sign of effective asset quality management
 The total liabilities have increased to 8.15% due to trade payable compared to
previous year
 Reserve and surplus was increased by nearly 2.76% when compared to previous year
TCS’ COMMON SIZE ANALYSIS
Common size analysis, also referred as vertical analysis, is a tool that financial
managers use to analyse financial statements. It evaluates financial statements by expressing
each line item as a percentage of the base amount for that period. The analysis helps to
understand the impact of each item in the financial statement and its contribution to the
resulting figure.
COMMON SIZE BALANCE SHEET ANALYSIS OF TATA CONSULTANCY

SERVICES AS ON 31ST MARCH 2020 & 2021
TCS (2020) TCS (2021)

PARTICULARS Amount Rs. Percentage Amount Rs. Percentage
(crores) (%) (crores) (%)
LIABILITIES
Share Capital 375 0.31 370 0.28
Reserve & surplus 83,751 69.27 86,063 65.82
Current liabilities 27,060 22.38 34,155 26.12
Other liabilities 9,713 8.04 10,171 7.78
TOTAL LIABILITIES 1,20,899 100 1,30,759 100
ASSETS
Fixed assets 20,124 16.65 20,149 15.41
Current assets 90,237 74.63 99,280 75.93
Other 10,538 8.72 11,330 8.66
TOTAL ASSETS 1,20,899 100 1,30,759 100
INTERPRETATION:
 The Reserve and surplus of TCS contribute to total liability is 69.27% in the year
2020 and to 65.82% in the year 2021
 Due to non-payment of short term borrowing of TCS, the current liability
contribution is 22.38% to total liability in the year 2020
 Fixed assets contribution is 16.65% to total assets in the year 2020 and it was also
reduced to 15.41% in the same year 2021.
 Current assets contribute to total assets 74.63% in the year 2020 it was increased
75.93% in 2021.
CURRENT RATIO OF TCS
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year. It tells investors and analysts how a company
can maximize the current assets on its balance sheet to satisfy its current debt and other
payables.
CA RATIO = CURRENT ASSETS / CURRENT LIABILITY
Year Current Assets Current Liabilities Ratio

2016-17 80,316 14,512 5.53 (
S 2017-18 81,224 17,828 4.56 o
u 2018-19 92,131 22,084 4.17 r
2019-20 90,237 27,060 3.33
c e
2020-21 99,280 34,155 2.19
from annual report)
GRAPHICAL REPRESENTATION OF CURRENT RATIO
0 Current Ratio
2016-17 2017-18 2018-19 2019-20 2020-21
INTERPRETATION
The ideal Current Ratio is 2:1. It is indicative of Solvency of Current Assets in paying
of its Short Term Liabilities & Debts. The above table shows current ratio of the company
which is 4.17:1 in 2018-19 and decreased to 3.33:1 in next year 2019-20. The higher the
current ratio, the more capable the company is of paying its obligations. A ratio under I
suggests that the company would be unable to pay off its obligations if they came due at that
point. So for TCS, current ratio shows that they have more current assets than current
liability. As graph shows that they have potential to pay its obligation so short term solvency
for TCS is strong.
NET PROFIT MARGIN (%) OF TCS
Net profit indicates how much a company is able to earn after accounting for all the
direct and indirect expenses to every rupee of revenue. This ratio is calculated by using the
formula and is expressed in percentage terms.
NP RATIO = NET PROFIT / SALES * 100
YEAR NET PROFIT SALES N/P Ratio

2017 26,289 1,17,966 22.28
2018 25,826 1,23,104 20.97
2019 31,472 1,46,463 21.48
2020 32,340 1,56,949 20.60
2021 32,430 1,64,177 19.75
(Source from annual report)
GRAPHICAL REPRESENTATION OF NET PROFIT RATIO
22.28
22.5
22 21.48
21.5 20.97
20.6
21
20.5 19.75
20
19.5
19
18.5
18
2017 2018 2019 2020 2021
NP RATIO
INTERPRETATION:
Net profit indicates a firm’s capability to face adverse economic conditions and it has
also high ratio indicates that profitability of concern is good. Low ratio indicates that
profitability of concern is poor.
Above graphs represent the gross block of TCS’ Net Profit. the company has
made higher gains in the year 2017-18 about 22.28%. The Net Profit Margin Ratio was
decreased; it was 20.97% in 2018-19. Again it was decreased in the year 2020-21 about
19.75%.
EARNING PER SHARE OF TCS

For an equity investor, a company’s EPS is the most important indicator of its
performance. if the EPS is good, the company can pay dividends, pay back the surplus into
reserves and issue bonus shares in the future. For these reasons, the market price of any
company’s share is largely influenced by its projected EPS.
EPS = EARNINGS AFTER TAXES AND PREFERRED DIVIDENDS / TOTAL

NUMBER OF EQUITY SHARES OUTSTANDING
YEAR 2017 2018 2019 2020 2021
EPS 66.72 67.61 83.93 86.24 87.65
GRAPHICAL REPRESENTATION OF EARINGS PER SHARE
100
90
80 86.24 87.65
83.93
70
60 66.72 67.61
50 EPS%
40
30
20
10
0
2017 2018 2019 2020 2021
INTERPRETATION:
High EPS will be the indicator of good performance and prospects of company. Table
shows EPS an increased trend. In the year 2018-19 it was 83.93% and increased to 86.24% in
2019-20. In the present year 2020-21 the company gain is 87.65% EPS with the good
performance of stock.
The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share (EPS) serve as an indicator of a company's profitability. This
graphs clearly indicates that TCS has a great investment and should be a part of the portfolio
of an investor.
RETURN ON ASSETS (%) OF TCS
Return on assets (ROA) is an indicator of how profitable a company is relative to its

total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a
company's management is at using its assets to generate earnings. ROA is best used when
comparing similar companies or by comparing a company to its own previous performance.
ROA is calculated by dividing a company’s net income by total assets. As a formula, it would
be expressed as:
ROA = NET PROFIT / TOTAL ASSETS * 100
YEAR NET PROFIT TOTAL ASSETS ROA (%)
2017 26,289 1,03,252 25.46

2018 25,826 1,06,292 24.29
2019 31,472 1,14,943 27.38
2020 32,340 1,20,899 26.74
2021 32,430 1,30,759 24.80
GRAPHICAL REPRESENTATION OF RETURN ON ASSETS
28
27.38
27 26.74
26
25.46
25 24.8 ROA (%)

24.29
24
23
22
2017 2018 2019 2020 2021
INTERPRETATION:
The return on assets actual rate is more than standard rate it is an indication of higher
profitability of total assets. If actual rate is less than standard rate it is indication of lower
productivity of the resources.
The graph shows that in the year of 2018-19 the return on assets has 27.38% it shows
the company very efficient to utilize the capital invested in the business when compared to
last year. It is good sign of effective return on assets and by the next it was gradually decrease
yearly and presently it has 24.8%.
RETURN ON EQUITY (ROE) OF TCS

Return on equity (ROE) is calculated by dividing a company's net income
by its shareholders' equity, thereby arriving at a measure of how efficient a company is in
generating profits. While ROE can help investors identify a potentially profitable stock, it has
its drawbacks and is not the only metric an investor should review when evaluating a stock.
ROE is calculated by dividing a company's net income by its shareholders' equity, or book
value. The formula is:
ROE = NET INCOME / SHAREHOLDERS’ EQUITY * 100

YEAR NET PROFIT SHAREHOLDERS’ ROE (%)
FUNDS
2017 26,289 86,214 30.49
2018 25,826 85,128 30.33
2019 31,472 89,446 35.18
2020 32,340 84,126 38.44
2021 32,430 86,433 37.52
GRAPHICAL REPRESENTATION OF RETURN ON EQUITY
ROE (%)
45
40 38.44 37.52
35.18
35
30.49 30.33
30
25
20
15
10
5
0
2017 2018 2019 2020 2021
INTERPRETATION:
The Return On Equity helps the investor for preference to investment on the basis of
ROE. The ratio indicates the return which the management is realizing from shareholders’
equity and shows how effectively it is been utilized. It also mainly indicates the available
return on shareholder’s funds and it determines the profit generated by the owners. Higher the
ratio the better in return on equity.
The Graph shows in the year 2018-19 Return on equity has 35.18%, in the year 2019-
20 it has 38.44% it indicates that the returns available to the equity shareholders for the
capital invested have increased in this financial year. thus, it will indicate the profitability and
efficient utilization of funds and it was slight decrease in 2020-21 by 0.92% but the TCS’
ROE ratio has increased yearly. It was a good sign for the company which indicates company
has increased its share capital, thus there is an increase in the return to the proprietor over the
funds he has invested in the business.
PRICE-TO-EARNINGS RATIO (P/E RATIO) OF TCS
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its per-share earnings (EPS). P/E ratios are used by
investors and analysts to determine the relative value of a company's shares in an apples-to-
apples comparison. It can also be used to compare a company against its own historical
record or to compare aggregate markets against one another or over time. A high P/E ratio
could mean that a company's stock is overvalued, or else that investors are expecting high
growth rates in the future.
YEAR 2017 2018 2019 2020 2021
PE RATIO 9.11 10.54 23.84 21.14 36.25
GRAPHICAL REPRESENTATION OF P/E RATIO OF TCS
P/E Ratio
40 36.25
35
30
25 23.84
21.14
20
15
10.54
9.11
10
5
0
2017 2018 2019 2020 2021
YEARS
INTERPRETATION:
The P/E Ratio is significant in predicting future stock returns. Price Earnings Ratio is
a useful indicator of what premium or discount investors are prepared to pay or receive for
the investment. The P/E Ratio highlights the connection between the price and recent
company’s performance. The ratio moves either side only when price and profit get
discounted. It indicates the amount that the investors are willing to pay for each rupee of
earnings. Higher ratio indicates higher profitability and thereby, investor’s confidence
increases, it indicates the number of times market price is higher or lower compared to EPS.
The Graph shown in the year 2020-21 P/E Ratio has 36.25% it was significant higher
ratio last five years’ earnings ratio of TCS. it was slight decrease in 2019-20 it has 21.14%
but the TCS’ P/E Ratio has increased yearly. It was a good sign for the company. it is inferred
that there is more responsiveness between the earing capacity of the share price has done
better in the share market.
5.3 FINANCIAL PERFORMANCE OF TCS

The financial performance is the most important data about a company for any
investor for making an investment decision. So, let's analyse the financial performance of the
company requested by you ‘Tata Consultancy Services’ Over the Past 3 Years.
FINANCIAL 2018-19 2019-20 2020-21

ASPECTS
Total Revenue 1,46,463 1,56,949 1,64,177
Total Expenses 1,09,007 1,18,368 1,22,813
Net Income 31,472 32,340 32,430
Current Assets 92,131 90,237 99,280
Total Assets 1,14,943 1,20,899 1,30,759
Current Liabilities 22,084 27,060 34,155
Total Liabilities 25,497 36,773 44,326

Stockholders’ Equity 89,446 84,126 86,433
Current Ratio 4.17% 3.33% 2.19%
Return on Equity 35.18% 38.44% 37.52%
Net Profit Margin 21.48% 20.60% 19.75%
Earnings Per Share 83.93 86.24 87.65
(Source: Tata Consultancy Services Ltd Annual Report)
In the past 3 years, TCS has continued to show a substantial increase in its annual
revenue. A transition from the Fiscal year 2018 to 2019 showed an increase of 10,486 crores
while from 2019 to 2020 an increase of 7,228 crores was observed. Net profit margins in
2018-19 it was 21.48%, in the fiscal year 2019-20 it is 20.60%. On the other hand, the rise in
the expense figure was nominal in overall due to inflation, yet TCS has implemented
measures such as avoiding travel where necessary and shifting people from overseas to India
to reduce costs.
TCS has been outstanding in growing its assets overtime and converting them value
for money assets While a 15-20% return on a rising business is commonly accepted as nice,
TCS has surpassed this cap ten year early. Consequently, today Tata Consultancy Services
Limited has outperformed all the IT consulting sectors and other services sectors on basis of
its return on equity delivering a higher 30.26% compared to a peer-average of 15.18% over
the past 12 months. TCS will spend much more with more leverage and gain more revenue,
increasing its earnings in upcoming years.
Although TCS has managed to provide a subsequently reasonable dividend to its

investors for the past several years. The company's market value hit more than $169.2 billion
in February 2021.
5.4 TEHNICAL ANALYSIS
Technical analysis is the examination of past price movements to forecast future price
movements. Technical analysts are sometimes referred to as chartists because they rely
almost exclusively on charts for their analysis.
Technical stock analysis is based on three basic principles namely:
1. Market action discounts everything;

2. Prices move in trends
3. History repeats itself
Technical analysis is a forecasting method of price movements using past Prices,

volume, and open interest. Pring (2002), a leading technical Analyst provides a more specific
definition: “The technical approach to investment is essentially a reflection of the idea that
prices move in trends that are determined by the changing Attitudes of investors toward a
variety of economic, monetary, political, and psychological forces. The art of technical
analysis, for it is an art, is Testing of Technical Analysis Tools”.
LINE CHART OF TCS
A line chart is a graphical representation of an asset's historical price action

that connects a series of data points with a continuous line. This is the most basic type of
chart used in finance, and it typically only depicts a security's closing prices over time. Line
charts can be used for any timeframe, but they most often make use of day-to-day price
changes.
INTERPRETATION:
The share price of Tata Consultancy Service is bullish trend in its share price. 1,200 at
the beginning of the study, after that price move up to 3,800 level when it recover from 1800
it fell down because of the covid-19 impact share price has went down and later onwards it
went to good position, the share price shows the bullish trend. The upward trend is a good
signal to investors, they get good return on their investment in future.
CANDLESTICKS CHART OF TCS
Candlesticks show that emotion by visually representing the size of price moves with
different colours. Traders use the candlesticks to make trading decisions based on regularly
occurring patterns that help forecast the short-term direction of the price.
INTERPRETATION:
The chart shows positive trend of share price of TCS. The first half of the study
period shows slow growth in the stock. In the year 2018 the stock gets good support level in
positive trend stating the stock trading at maximum high level. The TCS stock shows Bullish
trend in share price, the stock shows a massive growth in its share price from 1,750 during
the study period. the bullish trend of TCS is good signal to investors.
RELATIVE STRENGTH INDEX (RSI) OF TCS

The relative strength index (RSI) is a momentum indicator used in technical analysis
that measures the magnitude of recent price changes to evaluate overbought or oversold
conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line
graph that moves between two extremes) and can have the reading ranges from 0 to 100. The
indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978
book, “New Concepts in Technical Trading Systems.”
Traditional interpretation and usage of the RSI are that values of 70 or above indicate
that a security is becoming overbought or overvalued and may be primed for a
trend reversal or corrective pullback in the price. An RSI reading 30 or below indicates an
oversold or undervalued condition. An asset is usually considered overbought when the RSI
is above 70% and oversold when it is below 30%.
INTERPRETATION:
The analysis of research data reveals Relative Strength index of TCS. The RSI
chart of TCS shows bullish buying trend of the stock. Stock is now to the RSI point 75. It
shows the strength of the stock. The stock touch the range 30 in the year 2020 that was effect
of COVID -19. The RSI is indicating that the investors has to sell the shares when the RSI
goes above the 70 marks and the investor has to buy when the RSI goes below the 30 mark. it
makes profit to investors.
MOVING AVERAGE OF TCS

Moving average is a simple technical analysis tool. Moving averages are usually
calculated to identify the trend direction of a stock or to determine its support and resistance
levels. It is a trend-following-or lagging-indicator because it is based on past prices.
Moving averages are a totally customizable indicator, which means that an investor
can freely choose whatever time frame they want when calculating an average. The most
common time periods used in moving averages are 15, 20, 30, 50, 100, and 200 days.
Investors may choose different time periods of varying lengths to calculate moving averages
based on their trading objectives. Shorter moving averages are typically used for short-term
trading, while longer-term moving averages are more suited for long-term investors.
INTERPRETATION:
The TCS stock is showing upward trend line from 2018 to 2020, Due to Pandemic the
movement of share fallen in the year 2020 and it got recovered, we can see the aggressive
bull run 2020 to 2021 the stock has almost double on 2021, it indicates the investor have to
buy the shares of TCS when the price chart cuts the moving average and move above it and
the investor have to sell the shares when the price chart cuts the moving average and moves
below it. It shows positive trend in the end of study period.
PRICE RATE OF CHANGE (ROC) OF TCS
The Price Rate of Change (ROC) is a momentum-based technical indicator that

measures the percentage change in price between the current price and the price a certain
number of periods ago. The ROC indicator is plotted against zero, with the indicator moving
upwards into positive territory if price changes are to the upside, and moving into negative
territory if price changes are to the downside.
INTERPRETATION:
The analysis of research data reveals rate of change indicator of TCS, it indicates
that the investor has to sell the shares when the ROC goes above the 0 mark and buy it when
it goes below the 0 mark. Since the ROC is fluctuating above and below 0, it is better to
watch the market accurately whether to buy or sell the shares.
MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD) OF TCS
It is designed to reveal changes in the strength, direction, momentum, and

duration of the trend in stocks price. Moving average convergence divergence (MACD) is
a trend-following momentum indicator that shows the relationship between two moving
averages of a security’s price. The MACD is calculated by subtracting the 26-
period exponential moving average (EMA) from the 12-period EMA. MACD triggers
technical signals when it crosses above (to buy) or below (to sell) its signal line. The speed of
crossovers is also taken as a signal of a market is overbought or oversold. MACD helps
investors understand whether the bullish or bearish movement in the price and check its
strengthening or weakening.
INTERPRETATION:
NAME VALUE ACTION ANALYSIS
RSI is in overbought
Relative Strength Index (14) 74.73 Neutral level of 70.0 but does not
have enough momentum
to move upwards.
Simple Moving Average (10) 3239.27 Buy Positive breakout
Rate of Change 8.22 Neutral Nothing significant
417.97 Buy MACD trending up

MACD Level (12, 26) nicely vis a via signal
line and zero line.
The analysis of Research data reveals MACD for TCS. MACD is a trend following
indicator, and is designed to identify trend changes. The signal line crossing is the usual
trading rule. The investors have to buy when the MACD crosses up through the signal line, or
sell when it crosses down through the signal.
5.5 TCS SHARE TECHNICAL STUDIES ARE AVAILABLE IN SELECT
TIME FRAMES
CHAPTER - 06
FINDINGS, SUGGESTIONS & CONCLUSION
6.1 FINDINGS
6.2 SUGGESTIONS
6.3 CONCLUSION
6.4 ANNEXURE
6.5 BIBLIOGRAPHY
CHAPTER - 06
FINDINGS, SUGGESTIONS & CONCLUSION
6.1 FINDINGS
 In order to invest in companies for long term, company analysis is first of all
significant in fundamental analysis which enables the investors to understand
financial performance of the organization.
 Technical analysts evaluate securities by analysing statistics generated by market
activity, past prices and volume
 TCS has expanded its footprint in various global markets and improved its brand
 TCS’ Current ratio shows that they have more current assets than current liability. As
graph shows that they have potential to pay its obligation so short term solvency for
TCS is strong.
 One of India's most Respected Business Conglomerates and most Respected Brands.
They are Headquartered in Mumbai. They are having 285 offices in 46 Countries as
well as 147 Delivery Centres in 21 countries and TCS had a total of 58 Subsidiary
Companies.
 In concern with EPS, TCS is showing increasing trend throughout the five years.
 The Rise in the Expense figure was nominal in overall due to inflation, yet TCS has
implemented measures such as avoiding travel where necessary and shifting people
from overseas to India to reduce costs.
 TCS’ Net Profit has 32.430 in the year 2020-21. the company has made higher gains
in the year 2017-18 about 22.28%. of Net Profit but it was decreased in the year 2020-
21 about 19.75%.
 The TCS’ ROE ratio has increased yearly. It was a good sign for the company which
indicates company has increased its share capital.
 The TCS’ P/E Ratio has increased yearly. It was a good sign for the company. It is
inferred that there is more responsiveness between the earing capacity of the share
price has done better in the share market.
 The Share Capital of TCS, it has been reduced by 1.33% in the year 2021
 The Total Liabilities have increased to 8.15% due to trade payable compared to
previous year
 In The Past 3 years, TCS has continued to show a substantial increase in its Annual
Revenue.
 The Company has invested in setting up medical helplines, ambulance services and
first line Covid Care Centers within TCS premises, and has also extended counselling
and self-help services providing mental & emotional support to employees.
 Today Tata Consultancy Services Limited has outperformed all the IT consulting
sectors and other services sectors on basis of its Return On Equity delivering a higher
30.26% compared to a peer-average of 15.18% over the past 12 months.
 The company's market value hit more than $169.2 billion in February 2021.
 The Share Price shows the Bullish trend. The Upward Trend is a good signal to
investors, they get Good Return on their investment in future.
 Company ‘s Intrinsic Value is less than the Current price it shows that the share price
is overvalued and investor should sell the share. But if investor want to invest in the
company for long term than he can have a good profit because company growing
rapidly in terms of profit and Net Sales and its EPS is increasing over the years.
 There has been in an increase in all the financial aspects of TCS. It tells us that it is a
very good investment to be made.
 Support and resistance levels are price levels, at which movement should stop and
reverse direction. Think of support/resistance (S/R) as levels that act as a floor or a
ceiling to future price movements.
 Relative Strength index of TCS. The RSI chart of TCS shows bullish buying trend of
the stock. Stock is now to the RSI point 75. It shows the strength of the stock
 Due to Pandemic the movement of share fallen in the year 2020 and it got recovered,
we can see the aggressive bull run 2020 to 2021 the stock has almost double on 2021
6.2 SUGGESTIONS
 Before going to invest, an investor should have clear knowledge of capital market so
it is the part of the company to educate the investor with relate to all the types of
investment alternatives available.
 as in case of stock market half knowledge is very dangerous. so, it is the responsibility
of the company to train the employees and technical analysts to make them experts in
subject of stock market, so that they become experts to solve all the queries of the
investors without any wrong information or hesitation and solve the confusions of the
investors to increase the investment.
 TCS: Intrinsic Value > Market Value, it is undervalued, so it is recommended to buy
the stock as value of share may increase in future.
 Every investor is recommended to make a thorough analysis of the capital market,
about the company and industry before making any investment decisions.
 Investing in one share alone is not suggested as returns may not be favourable always.
Investing in multiple or diversified shares reduces the risk and provides a stable
return.
 The Long term investors should buy the stocks fair value found out by the
fundamental analysis.
 Short term investors should look on various support and resistance of stocks to buy or
sell and make profit
 The investors are watch the news which affects the stocks and market because market
is very much driven by sentiments, so they see its effects the market or stocks that
they can make more profit out of it.
6.3 CONCLUSION
Information technology sector of India has been significantly contributed to the

growth of Indian economy in terms of gross domestic products, generation of employment
and foreign exchange earnings. In Indian context, IT sector industries are major contributors
of GDP of India. From the study, TCS, as its intrinsic value is higher than its market value
and suggested to buy the share since the price of the same may increase in future. It is
recommended to each investor to have IT sector companies in their portfolio since they are
faster growing industry according to Indian context of research. In near future it is expected
that number of investors will be flooding into the capital market that increases the relevance
of fundamental analysis of various sectors. It can be concluded that the Information
Technology sector companies are one most promising platform of investment in capital
market and in turns give considerable return for the risk taken by investors. According to us,
TCS is one of the best acquisition opportunities for companies looking to invest in IT firms.
Fundamental analysts study everything from the overall economy and industry
conditions, to the financial condition and management of companies before deciding on any
particular stock. Technical analysts look for peaks, bottoms, trends, patterns and other factors
affecting a stock's price movement and then make buy/sell decisions based on those factors.
Sometimes Using Technical and fundamental analysis individually leads to incorrect results
hence both Fundamental and technical analysis should be used at a time to get the desired
result.
Stock market or capital market provides the industry with a lot of capital needed by
the industry, which leads to the growth of the industry and economy as a whole; hence the
stock market plays an important role in the development of the industry. Fundamental
analysis holds that no investment decision should be without processing and analysing all
relevant information. Its strength lies in the fact that the information analysed is real as
opposed to hunches or assumptions. On the other hand, while fundamental analysis deals
with tangible facts, it does not tend to ignore the fact that human beings do not always act
rationally. Market prices do sometimes deviate from fundamentals. Prices rise or fall due to
insider trading, speculation, rumour, and a host of other factors. TCS is would be a good
investment and an investor should certainly have it in the portfolio of investment.
6.4 ANNEXURE
6.5 BIBLIOGRAPHY
BOOKS REFERRED:
1. Security Analysis and Portfolio Management - By Donald E. Fischer, Ronald J.
Jordan
2. Investment Analysis and Portfolio Management - By Prasanna Chandra
3. Management Accounting - By B.S. Raman
WEBSITES REFERRED:
www.wikipedia.com
www.investopedia.com
www.moneycontrol.com
www.nseindia.com
www.business-standard.com
www.tcs.com/financial-statements
www.trendlyne.com
Opportunities
Growth in Service
Markets Globally
to
represented
30.9% application
para. 8)
led by
in 201
7 (MarketLine,2019, para. 8
Opportunities
Growth in Service
Markets Globally
to
represented
30.9% application
para. 8)
led by
in 201
Opportunities
Growth in Service
Markets Globally
to
represented
30.9% application
para. 8)
led by
in 201

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CHAPTER - 1

1.2 REVIEW OF LITERATURE

1.3 STATEMENT OF THE PROBLEM

1.4 OBJECTIVES OF THE STUDY

1.5 SCOPE OF THE STUDY

1.6 RESEARCH METHODOLOGY

Fundamental analysis of a business involves analysing its financial statements and

Technical analysis is a method of evaluating securities by analysing statistics generated

Information technology is playing an important role in India today and has

DEBJIT CHAKRABORTY (1997)

In his study attempts to establish a relationship between major economic indicators

AVIJIT BANERJEE (1998)

EMMA J. SCHULTZ (2008)

Proposes an equity valuation model integrating Fundamental and Technical analysis,

VENKATESH C K AND MADHU TYAGI (2011)

The research paper titled, “Fundamental analysis as a method of share valuation in

STEPHAN H PENMAN (2007)

THOMAS OBERLCHNER (2001)

Presents the findings of a questionnaire and an interview survey on the perceived

SANJAY SEHGAL AND MEENAKSHI GUPTA (2005)

PALEPU AND KRISHNA (2004)

1.3 STATEMENT OF THE PROBLEM

1.4 OBJECTIVES OF THE STUDY

1.5 SCOPE OF THE STUDY

1.6 RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It is a

 No personal contacts with stakeholders of companies also a limitation for analyzing

 The research will be only in the IT sector.

2.2 EVOLUTION OF IT SECTOR IN INDIA

2.3 INFORMATION TECHNOLOGY SECTOR

2.4 INDIAN IT INDUSTRY PLAYERS

2.5 MAJOR DEVELOPMENTS IN INDIAN IT SECTOR

2.6 ROLE OF IT INDUSTRY

2.7 GOVERNMENT POLICY INITIATIVES

2.8 CHALLENGES OF IT INDUSTRY

2.9 CONTRIBUTION OF INFORMATION TECHNOLOGY IN INDIAN

The Information Technology (IT) industry is an essential component of the

The evolution of the IT sector can be studied in 4 states as follows.

1) Stage 1 - Prior to 1980:

2) Stage 2 - 1980 to 1990:

3) Stage 3 1990 to 2000:

4) Stage 4 Post 2000:

2.3 INFORMATION TECHNOLOGY SECTOR

The information technology sector can broadly be classified into:

2) IT Business Process Outsourcing (BPO)

3) IT- Hardware and peripherals

(Data Source: IBEF, Ministry of Commerce & Industry, Government of India.)

2.4 INDIAN IT INDUSTRY PLAYERS

INDIA’S TOP 3 IT COMPANY BASED ON REVENUE IN FY 2019-20

1) TATA CONSULTANCY SERVICES (TCS):

Infosys is an NYSE listed global consulting and IT services

HCL Technologies, in terms of revenue, is one of

2.5 MAJOR DEVELOPMENTS IN INDIAN IT SECTOR

 In May 2021, Infosys entered a partnership with Majesco, a New Jersey-based

2.6 ROLE OF IT INDUSTRY

 efficiency and adds to transparency. It also serves as a medium of skill formation.

2.7 GOVERNMENT POLICY INITIATIVES

1) Foreign Direct Investment (FDI) Policy

3) Software Technology Parks of India (STPI)

4) National Policy on Information Technology 2012

5) National Cyber Security Policy 2013

2.8 CHALLENGES OF IT INDUSTRY

 Retention of employees is one of the biggest challenges for IT industry. Generally,