The document discusses fundamental analysis, detailing its importance in evaluating a business's financial health through financial statements, economic factors, and market dynamics. It differentiates between fundamental and technical analysis, outlining their respective approaches and methodologies, while also covering aspects like industry and company analysis, as well as marketing analysis. Additionally, it provides insights into stock exchanges in India, specifically the Bombay Stock Exchange and the National Stock Exchange, including their roles, indices, and market significance.

1. FUNDAMENTAL ANALYSIS
ECONOMIC ANALYSIS
INDUSTRY ANALYSIS
COMPANY ANALYSIS
MEANING OF MARKETING ANALYSIS
INDICES OF NSE AND BSE
BY
SATHYA PRIYA.P
KARTHIKA.
KOWSALYA.S
PRIYADHARSHINI.

2. Meaning of fundamental analysis:
 Fundamental analysis, in accounting and finance, is the analysis of a business's financial
statements(usually to analyse the
business's assets,liabilitiesand earnings)health and competitors and markets.
 These terms are used to distinguish such analysis from other types of investment analysis, such
as quantitative and technical.
 There are two basic approaches that can be used: bottom up analysis and top down analysis.
 It also considers the overall state of the economy and factors including
 Interest rates, Production,
 Earnings, Employment,
 GDP, Housing,
 Manufacturing Management.

3. DIFFERENCE BETWEEN FUNDAMENTAL AND TECHNICAL ANALYSIS
Meaning Fundamental Analysis Technical Analysis
Definition Calculates stock value using economic
factors, known as fundamentals.
Uses price
movement of
security to predict
future price
movements
Data gathered from Financial statements Charts
Stock bought When price falls below intrinsic value When trader believes
they can sell it on for
a higher price
Time horizon Long-term approach Short-term approach
Function Investing Trade
Concepts used Return on Equity (ROE) and Return on
Assets (ROA)
Dow Theory, Price
Data
Example iPhone Evaluation
(http://aswathdamodaran.blogspot.com/
2012/08/apples-crown-jewel-valuing-
iphone.html )
AOL from November
2001 through August
2002
(http://en.wikipedia.o
rg/wiki/Technical_an
alysis#Prices_move_
in_trends)
Vision looks backward as well as forward looks backward

4. THE TWO ANALYTICAL MODELS
 Fundamental analysis maintains that markets may incorrectly price a security in the short run but that
the "correct" price will eventually be reached. Profits can be made by purchasing the wrongly priced
security and then waiting for the market to recognize its "mistake" and reprice the security.
 Technical analysis Technical analysts look at trends and price levels and believe that trend changes
confirm sentiment changes. Recognizable price chart patterns may be found due to investors'
emotional responses to price movements. Technical analysts mainly evaluate historical trends and
ranges to predict future price movement.
 Fundamental analysis includes:
 Economic analysis
 Industry analysis
 Company analysis

5. FUNDAMENTAL ANALYSIS

6. Economic Analysis Factors
 For studying the Economic Analysis, the Macro Economic Factors and the forecasting
Techniques are studied in following paragraphs.
MACRO ECONOMIC FACTORS
 Growth rate of Gross Domestic Product (GDP)
 Savings and investment
 Industry Growth rate
 Price level and Inflation
 Agriculture and monsoons
 Interest Rate
 Government budget and deficit:
 The tax structure
 Balance of payment, forex reserves and exchange rate

7. ECONOMIC FORECASTING TECHNIQUES
 Anticipatory Surveys
 Barometric or Indicator approach
 Diffusion Indexes
 Money and Stock Prices
 Econometric Model Building
 Opportunistic Model Building

8. Industry Analysis in Investment Management
 Industry analysis is a type of investment research that begins by focusing on the status of an industry or an
industrial sector. A form of fundamental analysis involving the process of making investment decisions based
on the different stages an industry is at during a given point in time. The type of position taken will depend on
firm specific characteristics, as well as where the industry is at in its life cycle.
INDUSTRY LIFE CYCLE ANALYSIS
 Pioneering stage
 Rapid growth stage
 Maturity and stabilization stage
 Decline stage
 Costs become counter-optimal
 Sales volume decline or stabilize
 Prices, profitability diminish
 Profit becomes more a challenge of production
 distribution efficiency than increased sales

9. CLASSIFICATION OF INDUSTRY
 Industry means a group of productive or profit making enterprises organizations that have a similar
technically substitute goods, services or source of income. Besides Standard Industry Classification
(SIC), industries can be classified on the basis of products and business cycle i.e. classified according to
their reactions to the different phases of the business cycle. These are classified as follows:
Growth Industries
Cyclical Industries
Defensive Industries
Cyclical-growth Industries

10. CHARACTERISTICS OF AN INDUSTRY ANALYSIS
 Post sales and Earnings performance
 Nature of Competition
 Raw Material and Inputs
 Attitude of Government towards Industry
 Management
 Labor Conditions and Other Industrial Problems
 Nature of Product Line
 Capacity Installed and Utilized
 Industry Share Price Relative to Industry Earnings
 Research and Development
 Pollution Standards

11. PROFIT POTENTIAL OF INDUSTRIES: PORTER
MODEL Threat of new potential entrants
 Threat of substitute product/services
 Bargaining power of suppliers
 Bargaining power of buyers
 Rivalry among current competitors
FORCES DRIVING INDUSTRY COMPETITION
Risk of entry by potential competitors
 Economies of scale
 Brand loyalty
 Government Regulation
 Customer Switching Costs
 Absolute Cost Advantage
 Ease in distribution
 Strong Capital base

12.  Rivalry among current competitors
 Extent of exit barriers
 Amount of fixed cost
 Competitive structure of industry
 Presence of global customers
 Absence of switching costs
 Growth Rate of industry
 Demand conditions
 Bargaining Power of Buyers
 Bargaining Power of Suppliers
 Threat of Substitute products

13. COMPANY ANALYSIS
MARKETING SUCCESS

14.  SALES
 GROWTH IN SALES
o STABILITY OF SALES

15.  GROWTH IN SALES
 New products line extensions
 new client segments
 New export clients
 New channel of distribution
 new services

16.  INCREASE SALES ON COMPANY ANALYSIS:
 Align your goals
 In the end, marketing and sales have the same end goal earning clients and
contract for the company.

17.  EXCHANGE INFROMATION AND MEET REGULARLY:
 company go to way of success the most important thing is exchange and meet regularly.

18.  INVEST IN THE RIGHT TECHNOLOGY:
 GET MANAGEMENT SUPPORT
 CREATE CONTENT TO GETHER
 INVEST PERSONAL TIME TOGETHER

19.  STABILITY OF SALES:
 create long run success
 power of buyers and sellers

20. Marketing Analysis

21. What is Marketing Analysis?
 A marketing analysis is a study of the dynamism of the market.
 It is the attractiveness of a special market in a specific industry.
 Marketing analysis is basically a business plan that presents information regarding
the market in which you are operating in.
 It deals with various factors and should not be confused with market analysis.

22. What is the use?
 A marketing analysis is done so that you can formulate a strategy on how to run your
business.
 By taking into consideration certain factors, you will know how to operate your business.

23. What are the factors?
 The most common factors are the SWOT which is an acronym for; Strengths, Weaknesses,
Opportunities, and Threats.
 If you have a good labor force, ample investment and good advertising experts then you are
going to make your marketing strategy focusing on those things.
 Economic factors, political instabilities or even social changes can give you opportunities
which you can seize and do better.
 Considering all these factors will give you a marketing analysis from which you can
implement your decisions.

24. Dimensions of Marketing Analysis
 Market Size
 Growth rate of the market
 Market trends
 Market profitability
 Key success factors

25.  Market Size-The size of the market is a key factor in a marketing analysis.
 The bigger the market the more competitors you are likely to have.
 For a big market, you need to make sure your products and services stand out.
 Otherwise, the customers can easily switch to a rival product.
 Growth rate of the market -The market growth rate is a huge factor in any sort of
marketing analysis.
 This is because you get the idea of how long the said market will last.
 Before you make an investment you need to analyze the market’s growth rate.
 If it is likely to grow over time then you can invest more in it.

26.  Market Trends – Market trends are a significant part of the marketing analysis.
 Having knowledge about the trends help you to decide what kind of product you are going
to sell.
 When you are starting off a business you need to know what the current trend is.
 Market Profitability – Most companies’ motive to get into the business is to make a
profit. In other words, they are profit-motive businesses.
 So before getting into a business you need to analyze the profitability of the market.
 If the market has a good profitability then only you are going to invest heavily.

27.  Key Success Factors – The key success factors are those elements which help the business
to achieve great success in the market.
 Such elements are required to stand out among the rest of the competition.
 These are things which you did well that have enabled you to produce great results.

28. BOMBAY STOCK EXCHANGE
Stock Exchange (also called Stock Market or Share
Market) is one important constituent of capital
market. Stock Exchange is an organized market for
the purchase and sale of industrial and financial
security. It is convenient place where trading in
securities is conducted in systematic manner i.e. as
per certain rules and regulations.

29.  Bombay stock exchange is also Called as “Bombay Share Bazaar” in Hindi.
 Located in Dalol Street, Mumbai.
 It is the 10th largest stock exchange in the world by market capitalization.
 It is Asia’s first stock exchange and one of the India’s leading exchange groups.

30.  BSE Provides an efficient and transparent market for trading in equity, debt instruments,
derivatives, mutual funds.
 It also has a platform for trading in equities of small-and –medium enterprises(SME).
 Around 5000 companies are listed on BSE making it world’s No.1 exchange in terms of
listed members
 Mr.Ashish Chauhan is the MD&CEO of BSE
 Indexes: BSE SENSEX,BSE Small Cap, BSE Mid-Cap,BSE500

31. BSE Indices are Categorized as following:
1.BROAD Based Indices:
 S&P BSE SENSEX
 S&P BSE MIDCAP
 S&P BSE SMALLCAP
 S&P BSE 100
 S&P BSE 200
 S&P BSE 500

32. 2. THEMATIC Indices:
 S&P BSE GREENEX
 S&P BSE CARBONEX
3.INVESTMENT STRATEGY Indices:
• S&P BSE DOLLEX 30
• S&P BSE DOLLEX 100
• S&P BSE DOLLEX 200

33. NATIONAL STOCK EXCHANGE (NSE)
• The National Stock Exchange is India’s Largest Financial markets.
• Established in 1992,the NSE as developed into sophisticated, Electronic market, which
ranks third in the world for transacted volume.
• It opened for trading in mid-1994
• The NSE conducts transactions in the wholesale debt, equity, and derivative market.

34.  NSE is also called as “Rashtriya Share Bazaar” in hindi & is located in Mumbai.
 It is the 11Th largest stock Exchange in the world.
 NSE is mutually owned by a set of Leading financial Institutions, Banks, Insurance
company’s and other financial intermediaries in India.
 Chitra Ramakrishan is the managing Director CEO of National Stock Exchange of India
(NSE).

35. NSE Strategy Indices
 Nifty 100 Equal weight index
 Nifty 50 Arbitrage Index
 Nifty 100 Alpha 30 Index
 Nifty Alpha 50 Index
 Nifty High Beta 50 Index
 Nifty 100 Quality 30 Index
 Nifty Quality low volatility 30
 Nifty 500 Value 50