WRITER’S VOICE

FINANCIAL LITERACY A NEW

INITIATIVE OF WRITER’S VOICE.
DAY-02
 FINANCIAL LITERACY
• OUTCOMES OF THE WEBINAR:
-Complete introduction to stock
market;
-Able to learn investment tactics;
-Fundamental analyzation of stocks
can be achieved.
By,
Ch. Kesava Rao,
Writer’s voice.
STOCKS:

● National Stock Exchange (NSE)

● This is the ultimate organisation, in
India, which regulates the complete
transaction of stocks
● Bombay Stock Exchange (BSE)
● This is the ultimate organisation, in
India, which deals with the complete
Indian transaction of stocks over the
world.
STOCK MARKET
● This is the real arena
where the fight between a
“Bull” and a “bear” occur.
● Bull trend – The surge
increase of stock price
from the base price.
● Bear trend- The surge
decrease of stock price
from the base price.
FUNDAMENTAL ANALYSIS OF STOCKS

● P/E ratio
● Debt/Equity ratio
● Financial trend
● Missions of Company
● Sector rotation
● Relative Strength Index (RSI)
DEBT/EQUITY RATIO
● The debt-to-equity (D/E) ratio is used to
evaluate a company's financial leverage
and is calculated by dividing a
company's total liabilities by its
shareholder equity.

SHAREHOLDER’S EQUITY:
● Take the sum of all assets in the balance
sheet and deduct the value of all
liabilities.
FINANCIAL TREND

● This is one of the most important point to be considered before investing in

the stocks.
● E.g, Coal india.company FT:
MISSIONS AND MOTIVES OF COMPANIES

● This is the first and foremost criteria to

be considered for long-term
investments.
● Missions and future plans of company
will guide us to estimate the future
trends of the stocks.
● Better acquaintance of political policies
with visions of company can make
fortune in stock market.
SECTOR ROTATION
● This is the unique feature of stocks that can make fortune for companies
running in losses
● For e.g, JITF infralogistics
INFLUENCE OF CLOUD STOCK
RELATIVE STRENGTH INDEX (RSI)
● If you are an Intra day trader, this is first criteria to be considered.
● If the demand for the stock in the market is high, then the stock price will
automatically increase and vice versa.
Sector rotation

What does a sector rotation mean?

It is the influence of growth of whole sector on
the individual stock of that sector.
It is the main reason for many debt companies to
end up in positive trends and the main reason to
decrease the inflation effect of individual stock.
Example of sector rotation
Financial trend of JITF Balance sheet
 Case study
Complete analysis of Coal India.
Financial trend of company is in profit,as the stock price follows.
Vision and Mission of coal India

The real reasons of coal India bull trend is it’s vision.

Financial trend and balance sheet of coal India
Financial trend and balance sheet of JITF Infra.
The company is in losses from the past 3 years yet ,manage to end in
positive trends in market
Increase in infra development in India.
As the increase in development of India the infrastructure is also developed.

Roads of India are base for transportations and services.

Case study IDBI Bank ltd
Here, the complete case study idbi bank is stated thus, the balance sheet and financial
trend of IDBI bank is explained with its effect on the share price of company.
Share trend of IDBI bank Ltd.
The resemblance of nifty bank and IDBI bank ltd.
P/E RATIO
● P/E Ratio is calculated by
dividing the market price of
a share by the earnings per
share.
●  For instance, the market
price of a share of the
Company ABC is Rs 90 and
the earnings per share are
Rs 10. P/E = 90 / 9 = 10.
 THANK YOU
I WISH YOUR JOURNEY INTO THE STOCK MARKET IS A BULL TREND