A COMPARATIVE ANALYSIS OF FUNDAMENTAL AND

TECHNICAL ANALYSIS OF SUNPHARMA AND DIVISLAB LISTED

ON NSE
Synopsis of Master Thesis submitted in partial fulfilment of the requirements for the
award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF

BENGALURU CITY UNIVERSITY

By

Nagarjuna NV

MB200632

Presidency College

Under the guidance of

Narasimha Murthy

Associate Professor

PRESIDENCY COLLEGE

BENGALURU CITY UNIVERSITY

Name: Navaneeth GS
Registration No: MB200554
Title of the study
A study on the impact of RBI monetary policies on Indian Stock market

Need for the Study

Monetary policy is used to manage the money supply to all the sectors of the economy and
interest rates to increase the pace of growth of the economy. The evidence says that
monetary policy instruments directly or indirectly affect the various sectors of the economy
and stock markets. It is understood that there is a close relationship between monetary
policy and the stock market. This study aims to understand whether the monetary policy and
stock markets move hand in hand or in opposite directions and which sector is highly
influenced by the monetary policy. This analysis is a perfect guideline for investors and
bankers which helps to take investment decisions. When monetary policy and stock market
relationship are established, investors are able to establish the significance between them
and accordingly invest in stocks. Hence there is a need to understand how Monetary policy
changes affect the stock market and have an influence on different sectoral indices.
Statement of the problem
The majority of investors don’t really focus on monetary policy while investing in the
stock market
Objectives

 To know how the monetary policy impacts our Indian market

 To measure the inflation, and its influence on key interest rates.

 To find the CRR and Repo rate impact on stock market volatility.

 To find how RBI monetary policy was able to control inflation.

Sampling
Any fluctuation in the monetary policy has a direct impact on stock market returns and
the overall economy of the nation. The research is conducted on the Nifty 50 and
sectoral indices which account for 6 sectors of the economy. The study is based on the
daily closing values of Nifty 50 and sectoral indices for the period of 5 years from 1st
April 2016 to 30th March 2021. Monetary tools data is obtained from RBI. In order to
test the impact of monetary policy on the Indian stock market. Multiple regression is
conducted to study the relationship between Nifty 50 and selective monetary
instruments. It helps to determine the contribution of each monetary policy
instrument in the movement of the Nifty 50
Sources of Data:
Information has been collected from Secondary Data.
Secondary sources- Secondary data are those which have already been collected by
someone else and which already had been passed through the statistical process. The
secondary data was collected through websites, books, and magazines.
Tools for data collection
RBI websites
National Stock Exchange
Articles
Macro trends
Trading Economics
Plan of Analysis

 Introduction

 Executive summary

 Theoretical background

 RBI monetary policy

 Data analysis and interpretation

 Findings, suggestions, and conclusion

 Bibliography