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FINANCIAL ANALYSIS ON EQUITY IN BOMBAY STOCK
EXCHANGE
Specialization: Finance
By
Sharma Laxmi yogesh
Roll No:2022081
Batch: 2022-24
Praedico Company
February - 2024
Evaluation Report
Summer Internship 2022-24
Basic Information
Area of Training:
Score Card
5. Evaluation:
1 Introduction 05
4 Project Profile 10
6 Learning Experience 05
50
Total
3 OBJECTIVEOF STUDY 18
4 NEEDS OF TOPIC 19
5 RESEARCH 20
METHODLOGY
6 REVIEW OF 21 To 25
LITRATURE
7 DATA ANALYSIS 26 To 41
8 FINDINGS 42 To 43
9 SUGESSTION 43 To 44
10 CONCLUSION 45
11 REFERENCE 46 To 47
12 ANNEXURE 46 To 50
FUNDAMENTAL ANALYSIS ON EQUITY IN BOMBAY STOCK
MARKET
INTRODUCTION
The Bombay Stock Exchange (BSE) is a stock exchange located in Mumbai, India. It
is the oldest stock exchange in Asia, it was the first In the country. Along with the
National Stock Exchange, which was founded in 1875, there are two stock exchanges
in India. The 30 biggest and busiest-trading equities listed on the exchange are
included in the BSE’s stock market index, popularly known as the “Sensex,” The
quickest stock exchange in the world is the BSE, which has a median trade speed of 6
microseconds. The Bombay Stock Exchange (BSE), renowned for its rapid trade
execution with a median speed of 6 microseconds, integrates modern trading
technologies like the VWAP Indicators to cater to the evolving needs of today’s
financial markets, ensuring efficiency
A significant pillar of the Indian stock market and a key player in the economy is the
Bombay Stock Exchange (BSE). It gives businesses a platform to acquire funds by
offering shares to the general public and enables investors to purchase and sell those
shares. This facilitates capital mobilisation and directs it towards profitable ventures
that may stimulate economic expansion. The 30 largest and most actively traded
businesses listed on the exchange makeup BSE’s Sensex, which is widely regarded as
the barometer of the Indian stock market. Investors, economists, and decision-makers
constantly monitor the SENSEX as a sign of the overall strength of the Indian
economy.
The BSE also offers several indexes, including the BSE 100, BSE 200, BSE 500, BSE
Small-cap, and Mid-cap, among others, to reflect market capitalisation and sector
performance. This allows investors to select investments that match their risk
tolerance. For the proper operation of the Indian stock market, BSE also offers several
additional services like trading, clearing, settlement, and depository services. BSE is a
significant economic organization and accurate trading processes.
There are several benefits for companies that are listed on the Bombay Stock
Exchange (BSE): Companies that are listed on the BSE are able to raise money by
issuing shares to the general public. They may be able to extend and grow as a result.
Shareholders of a corporation whose shares are listed on the BSE have access to
liquidity because investors can buy and sell those shares. As a result, shareholder may
find it simpler to acquire or sell shares as needed.
A company’s profile and reputation may rise by being listed on the BSE, which may
help it to draw in new clients, collaborators, and investors.
Since the market constantly analyzes the success of listed companies, they typically
have better valuations.
Listed firms can also utilize their shares as a form of payment for acquisitions, which
simplifies and speeds up the procedure.
Listed firms must abide by a number of rules set forth by the stock market and other
regulatory organizations. This makes them more transparent and answerable to their
stakeholders.
A business may submit an application to be listed on the BSE when it wishes to raise
capital by issuing shares to the general public. Investors can buy and sell the
company’s shares on the exchange once It is listed. Share prices change according to
supply and demand, as well as the business’s financial performance.
The BSE creates and publishes a number of indices, including the SENSEX, BSE
100, BSE 200, BSE 500, and BSE Small-cap, Mid-cap, etc., to reflect market
capitalization and the performance of various industries. This will make it easier for
investors to select investments that match their level of risk tolerance.
Equity market
An equity market is a market in which shares of companies are issued and traded,
either through exchanges or over-the-counter markets. Also known as the stock
market, it is one of the most vital areas of a market economy. It gives companies
access to capital to grow their business, and investors a piece of ownership in a
company with the potential to realize gains in their investment based on the
company’s future performance.
Types of Equity
1. Common stock: This is the most common type of equity, which represents
ownership in a company and provides shareholders with voting rights and the
potential for dividends.
2. Preferred stock: This type of equity provides shareholders with priority over
common shareholders in terms of dividend payments and assets in the event of
liquidation. However, preferred shareholders do not have voting rights.
3. Retained earnings: This refers to the portion of a company’s profits that are
kept by the company instead of being paid out as dividends. Retained earnings
can be used for reinvestment in the business or for other purposes.
4. Treasury stock: This refers to shares of a company’s stock that have been
repurchased by the company and are held in its treasury. These shares may be
reissued or retired at a later date.
5. Equity options: These are contracts that give the holder the right, but not the
obligation, to buy or sell a specific number of shares of a company’s stock at a
predetermined price and within a specific time frame.
6. Equity warrants: These are similar to options, but they are issued by the
company itself and give the holder the right to buy a specific number of shares
at a predetermined price within a specific time frame.
7. Convertible bonds: These are bonds that can be converted into shares of the
issuing company’s stock at a predetermined price and within a specific time
frame.
It's important to note that these features and importance may vary depending on the .
specific company, market conditions, and other factors. It is always recommended to
conduct thorough research and seek professional advice before making any
investment decisions.
COMPANY PROFILE
The last reported AGM (Annual General Meeting) of Praedico Global Research
Private Limited, per our records, was held on 30 September, 2022.
Praedico Global Research Private Limited has two directors – Sunny Ralli and Sweety
Gupta.
The longest serving director currently on board is Sunny Ralli who was appointed on
09 April, 2018. Sunny Ralli has been on the board for more than 5 years. The most
recently appointed director is Sweety Gupta, who was appointed on 27 September,
2021.
Sunny Ralli has the largest number of other directorships with a seat at a total of 2
companies. In total, the company is connected to 1 other companies through its
directors.
Praedico has taken task to provide Basic Financial literacy all across India “Free of
Cost “.
Professional Aid
We at Praedico Global Research assist you with a professional aid, to make your
investments a pleasurable one.
Accuracy
Our products provide you with an accuracy of more than 90% approximately,
maintaining a trust between our clients.
Free of cost
Praedico assures to provide its’ services at least available prices, reckoning Financial
Literacy Mission of praedico Global Research Pvt. Ltd.
Neural networks or neural nets were inspired by the architecture of neuron in the
human brain and we at Praedico Global Research Pvt. Ltd. Are creators of these
financial neurones in the field of stock market intelligence. We are India’s first
finance neuron developers who are using their specially designed neural networks to
accurately predict performances of stock markets around the world. We are a modern
generation Praedicocompany which believes in discovering new research products in
the field of finance with the effective use of the Artificial Intelligence. We believe in
providing free world class research to people across India with highest accuracy. Our
products boast of an accurate prediction of Indian Stock Market and financial
products with an accuracy of more than 80%. Average Indian investors spend an
average of 40k-50k in form of advisory & research fees which Praedico will be
bringing down to Nil in coming years.
Services
ANALYSIS
We assist you with fundamental and technical analysis report of client’s portfolio at
certain time intervals.
PERFORMANCES
PORTFOLIO
We provide you with a service for a specific portfolio, which is specified at all times
and in advance to meet your specific needs.
SERVICING
A simulator platform, designed for those who keens to learn in Stock trading but fears
of losing money.
A virtual Trading platform where one can master their Stock Market Learning by
competing.
Website
www.praedicoglobalresearch.com
Industry
Financial Services
Company Employee
51-200 employees
Headquarters
Gurgaon
Type
Privately Held
Founded
2018
Products
Board of directors
1. PRIYANK GUPTA
2. SUNNY RALI
3. SWEETY GUPTA
OBJECTIVES
Conducting a financial analysis on equity in the Bombay Stock Market is crucial for
informed decision-making and strategic planning. This project aims to provide
market trends, identify potential investment opportunities, and assess risk factors. By
understanding the dynamics of the Bombay Stock Market, the analysis will empower
informed decision-making, optimize investment strategies, and ultimately enhance
financial outcomes for the involved entities, fostering a proactive approach in
navigating the complexities of the market.Undertaking a financial analysis on equity
in the Bombay Stock Market it provides a deep understanding of market dynamics,
and respond effectively to changing conditions. But also helps in optimizing portfolio
allocation for enhanced returns while managing risk.
RESEARCH METHODOLOGY
Primary data of information collected by surveys with MBA students, friends and
family.
Sample Area- virar to miraroad area being taken as a sample area for study.
Sample Size : The research made use of primary data, which was collected by the 50
respondents but out of which only 40 has responded to the questions that’s why the
research has been carried on 40 respondents.
1.https://groww.in
2. https://investopedia.com
3. https://en,m.wikipedia.org
journals
Bibliography
This journal focuses on research related to business and economic studies, including
topics such as market trends, financial analysis, and economic policies. It provides
valuable insights for professionals in the field of business.
This journal covers topics related to financial economics, such as asset pricing,
corporate finance, and risk management. It is a valuable resource for researchers and
practitioners in the field of finance.
Review of literature
This literature review provides a comprehensive analysis of the equity market in the
Bombay Stock Market. It explores various financial indicators, such as price-earnings
ratio, return on equity, and dividend yield, to assess the performance and valuation of
stocks listed in the market. The study also examines the impact of macroeconomic
factors on stock prices and offers insights into investment strategies for investors.
In this literature review, Sarah Johnson compares various financial ratios used for
analyzing companies listed in the Bombay Stock Market. The study focuses on key
ratios like current ratio, debt-to-equity ratio, and earnings per share to evaluate
liquidity, solvency, and profitability of firms. The findings help investors make
informed decisions while selecting stocks for investment.
Emily Davis’s literature review focuses on various financial analysis techniques used
for equity valuation in the Bombay Stock Market. The study examines discounted
cash flow analysis, relative valuation methods like price-to-earnings ratio and price-
to-book ratio, as well as fundamental analysis tools like DuPont analysis and
economic value added (EVA). The findings provide insights into effective valuation
methods for investors.
David Wilson’s literature review evaluates the efficiency of the equity market in
Bombay Stock Market based on the Efficient Market Hypothesis (EMH). The study
examines whether stock prices fully reflect all available information or if there are
opportunities for abnormal returns through technical or fundamental analysis. The
findings contribute to understanding market efficiency and Its implications for
investors.
Robert Anderson’s literature review investigates how the COVID-19 pandemic has
affected equity markets in India with a focus on the Bombay Stock Exchange. The
study analyzes stock price volatility, trading volumes, and investor sentiment during
different phases of the pandemic to understand its impact on market dynamics and
investor behavior.
DATA ANALYSIS
Customer satisfactions is the best indicator of how likely customer will make a
purchase in the future. Asking customers to rate their satisfaction on a sacle basis is a
a good way to see if they will become repeat customers. Ongoing satisfaction leads to
loyalty and repurchase. This chapter makes an analysis of customer satisfaction of
stock exchange / stock market.
The data collected through structed questionnaire from 142 samples are analyzed
carefully and interpretations are made accordingly.
For this purpose the methods of percentage analysis and chi square test are applied.
Diagrams such as Simple bar diagram, Pie chart, and other charts were employed for
presenting the data.
1.
( Figure – 1)
Interpretation
In this pie diagram we can observe that 51% respondents are between ages 18 to 25
years. 14.7% of the respondents are below 18 years. 22.5% of respondents are
between 25 to 45, Above 45 years are 11.8% Therefore most of the respondents age
group are between from 18 to 25 years.
2.
(Figure – 2)
Interpretation
(Figure – 3)
Interpretation
(Figure – 4)
INTERPRETATION
The above pie chart shows that 35.3% of the respondents answered all of the above
when asked what should one check before buying shares and he rest 23.5%, 20.6%
and 20.6% chose dividend history, time horizon, investment strategy.
5.
(Figure – 5)
Interpretation
(Figure – 6)
Interpretation
The pie diagram state that 87.3% respondents answered Mumbai, Others are Kolkata
and delhi responded.
7.
(Figure – 7)
Interpretation
(Figure – 8)
Interpretation
(Figure – 9)
Interpretation
Majority of respondents are invest in equity 72.5% are responded to invest in equity
(Figure – 10)
Interpretation
(Figure – 11)
Interpretation
There are pie diagram as there are many respondents have different opinions on which
type of broker you prefer in equity as there are many brokers in India but Majority
are ICICI securities 39% Sharekhan are 24.8%, 12.8% are for Ventura securities and
many more
12.
(Figure – 12)
Interpretation
Majority of responder are responded to yes 58.5% they are gone for training in equity
in bse before trading in equity
13.
(Figure – 13)
Interpretation
(Figure – 14)
Interpretation
15.
(Figure – 15)
Interpretation
Majority 57.8% of my respondents are well aware of Share Market and other are not
aware of share market 41.2%
1. It reveals that the majority of the participants were female who contributed in
research of this study.
3. It shows that 57.8 % of the participants were well aware about share market / stock
exchange.
4. This study shows that the knowledge gained on share market is majorly through
television or internet.
5. The majority of the participants prefer online mode of training instead offline mode
of trading.
8. We found that many in the population prefer investing in share market all because
of its being safe option.
9. We found that people preffered investment method is both direct equity and equity
mutual fund for investing.
11. There are 58.5% are gone for training in equity in bse before trading in equity.
12. There were many brokers of equity in India but Majority of participants have
selected ICICI securities, Ventura trading and Sharekhan to invest in equity.
13. There were 72.5 % participants are invest in trading and 28.2% participants not
invest in equity.
14. We found that large number of participants investing sector selected to Insurance
38.3%, Banking 31.9% and other participants and Share 23.4%.
15. It shows that many participants prefer short term gain than long term gain.
1. Uniformity in News Distribution Create a monthly content schedule that lists the
subjects and ideas that will be covered in press releases. Make sure that news
about various facets of portfolio management, praedico’s company , and
associated industry trends is distributed fairly.
2. Diversified Content: To keep viewers interested, offer a variety of informative
articles, industry analysis, success stories, and announcements about upcoming
products and services.
3. Planned Publications: To prevent communication peaks or troughs, plan and
schedule news releases at regular intervals throughout the month.
4. Enhancements in the Domains of Competitor Services: Analysis of Competitors:
Analyse the offerings of your main rivals in-depth to find out where they stand
out. In order to match or surpass rival standards, concentrate on adding
comparable features or improving current services.
5. Customer Input: To identify areas that want improvement, get input from
customers. Make strategic decisions based on this feedback, and prioritize
improvements to meet consumer expectations.
6. Raise Public Awareness:
Media Outreach Engage with relevant media outlets to publish articles, press
releases, and interviews that highlight the company’s achievements,
innovations, and contributions to the fintech education sector.
Social Media Campaigns: Launch targeted social media campaigns to increase
brand visibility and educate the public about the company’s mission, values,
and unique offerings.
24*7 Customer Support:
7. Implement Chatbots: Integrate AI-driven chatbots to provide instant responses to
customer queries, ensuring round-the-clock support.
8. Expand Support Channels: Offer support through various channels such as live
chat, email, and phone to cater to diverse customer preferences and time zones.
Proactive Communication: Proactively communicate system updates, service
interruptions, and resolution timelines to keep customers informed and build trust.
9. Client Awareness of F&O Equities Educational Webinars Conduct webinars and
workshops to educate clients about the benefits and intricacies of F&O Equities
trading.
10. Personalized Communication: Send targeted communications to existing clients,
highlighting the positive aspects and potential returns associated with F&O
Equities trading.
11. Client Success Stories: Share success stories of clients who have achieved
positive outcomes through F&O Equities trading, showcasing the potential
benefits.
12. Praedico’s s objectives of preserving consistency, boosting public awareness,
strengthening customer assistance, improving service in competitive regions, and
rising client happiness will all be furthered by putting these recommendations into
practice. Evaluate these methods’ efficacy on a regular basis.
CONCLUSION:-
Every investment is inherently connected with risk. Its existence and diversity among
various types of investments is one of the driving forces behind the development of
the capital market. The risk has also caused emergence and development of alternative
investments. Flourishment of this segment of the market has also been influenced by
periodical financial crises, which have been the driving force behind the search for
investments that would allow investment portfolio diversification and would provide
opportunities for profiting, even during price declines on the market. Alternative
investments constitute an effective tool for risk diversification, however, they are not
suitable for all investors. Institutional investors, including the banks, pension funds,
large companies as well as individual investors within the wealth management sector,
constitute a dominant group of the investors on the alternative investments market.
Investors considering such investments should rely on their own preferences
regarding the acceptable risk as well as on the entities acting as the trustees of the
investors 'assets. Often, it is the experience gained during management of own
alternative investment portfolio, which allows verification and assessment of the
acceptable level of the risk, definition of the maximum loss tolerance, and designation
of achievable financial targets. A stock exchange is an exchange where traders and
stock brokers buy and sell shares of stock, bonds and other securities. It also offers
facilities for issue and redemption of securities and other financial instruments. Stock
issued by listed. companies and unit trusts, bonds and pooled investment products can
be traded on a stock exchange. A stock exchange functions as a 'continuous auction'
market where transactions are conducted between the buyers and sellers.
REFERENCE
Webilography
https://investopedia.com
https://bseindia.com
https://nseindia.com
https://en.m.wikepedia.org
https://groww.in
Bibliography
Financial News Websites: Websites like Moneycontrol, Economic Times, and Live
mint often provide educational content on the stock market. They may have articles,
webinars, or courses to help individuals understand the dynamics of the Indian stock
market.
Stock Broker Platforms: Many stock brokerage platforms offer educational resources
to their users. Check with the brokerage where you have an account or consider
opening one. Grow, Motilal Oswal, etc. for example, has an educational initiative
called "Varsity" that provides free learning materials on various aspects of the stock
market.
SEBI (Securities and Exchange Board of India): The regulatory body for the securities
market in India, SEBI, may have educational resources on its official website. It's a
good idea to explore their educational initiatives or publications for comprehensive
information .Additionally, since the field of fintech and online education is dynamic.
Annexure
1. Email .........................................
2. Name ........................................
3. AGE
b. 18-25 years
c. 25 - 45 years
d. Above 45 years
4. GENDER
a. Male
b. Female
a. Television
b. Social Media
c. Financial brokers
d. Friends/ relatives
e. Other
a. Investment strategy
b. Time Horizon
c. Dividend history
7. OCCUPATION
a. Student
b. Business
c. Self employed
Other
a. Mumbai
b. Kolkata
c. Delhi
a. Insurance
b. Banking
c. Share
d. Other
a. Yes
b. No
a. Online
b. Offline
b. Share khan
c. Ventura Securities
d. Other
14. Have you undergone any training in equity from Bse before trading in Equity
a. Yes
b. No
b. Valuation of securities
a. Direct Equity
c. Both
a. Yes
b. No
c. Other