Performance analysis of selected Banking and Telecommunication sector stock in India - ( contains only few relevant part of the whole project report)

1. “PERFORMANCE ANALYSIS OF SELECTED
BANKING AND TELECOMMUNICATION SECTOR
STOCK IN INDIA”
External Guide
MR. POWDHAN SHETTY
Branch Manager
Anand Rathi
Share & Stock Brokers Ltd.
Submitted by
MOHAMMED ZEEHAB
4SX18MBA51
Internal Guide
DR. SHARAN SHETTY
Professor
Department of Business Administration
1

2. BANKING SECTOR
• The bank plays a very important role in any country's economic growth.
• India has a financial network of 20 commercial banks, 22 privately-owned banks, 44
international banks, 44 national rural banks, 1542 regional cooperative banks and 94,384
local cooperative banks, in contrast to co‐operative credit institutions.
• The digital payment revolution will change the way credit is paid in India significantly.
The debit cards have since demonetization become the popular mode of payment.
Transactions through the UPI amounted to Rs1.89 Lakh Crore (US$ 27.08 billion) for a
total sum of 1.2 billion in November 2019.
2

3. TELECOMMUNICATION SECTOR
• India is the second largest telecommunications market in the world, with 1,204.8 million
by the end of October 2019. The share of 3 G and 4 G data usage in total wireless data
usage during 2019 is approximately 6.83% and 92.56% respectively.
• In FY19, ₹61,535 crore (US$ 8.80 billion) were produced in the telecommunications
division.
• India has the largest internet usage per mobile device globally at a median of 9.8 GB
per month. It is predicted to more than double 18 GB by 2024.
3

4. COMPANY PROFILE
Anand Rathi Group was founded in 1994, at the initiative of Mr. Anand Rathi. The agency is
already rubbing shoulders with the country's biggest providers of financial services. They do
various financial services under a single umbrella, including Mutual Funds, Wealth Management,
Insurance, Equities, Investment Banking, Brokerage, Bonds, and Corporate Finance and
Consulting.
The company has expanded its business to over 1200 locations, with its brokers and
branches throughout the country. The organization has over 2,500 staff and specialists who lead
the company to consistent performance over the years. The company has also expanded its
business in global locations such as Dubai, Singapore, and Bangkok.

5. OBJECTIVES OF THE STUDY
● To understand the current status of telecom and
banking industry in India.
● To analyze risk components in these industries.
● To suggest possible growth prediction of these
industries
5

6. SCOPE OF THE STUDY
The present study examines the performance and analysis of selected
stocks in the banking and telecommunications sector in India over the last
five years (2015-2019) and selected only five banks and five
telecommunications companies.
6

7. 7

8. ANALYSIS AND INTERPRETATION
Table showing share prices of HDFC
8

9. Chart showing 12 days simple
moving average of HDFC
9
Chart showing relative strength
index of HDFC
The 12-day SMA is a reliable way to forecast buying and selling signals for a given stock, based on the moving average
trend lines. If the price point is reached by the trend line, then the purchasing signal is indicated. A selling signal is seen
when the trend line is below price level.
The HDFC inventory analysis reveals that according to the diagram the SMA trend line goes above the price point.

10. Chart showing Moving average of
convergence and divergence of HDFC
10
Chart showing rate of change of
HDFC
That is why it means the buy signal. In the future the stock prices are projected to increase. The check's RSI value is at
86.33. The values suggest the seller should keep the stock in the future in order to reduce its costs. It means the stock will
have a downward trend in the next several days. The average for short-term stores is longer than the average for long-term
stores if the MACD value is greater than zero. ROC in the years 2015 to 2019 is above average, and the script is
overbought situation.

11. 11
Table showing the risk of selected banking sector
Particulars Average Return Standard Deviation Beta Total Risk
SBI -1.65 43.92 0.13 1928.65
HDFC 1.83 294.42 0.16 86680.63
AXIS -1.99 112.10 0.05 12565.66
ICICI -1.01 89.53 0.20 8015.65
IDBI -3.07 16.60 -0.01 275.61
Particulars Average Return Standard Deviation Beta Total Risk
Airtel -0.95 58.24 0.14 3391.79
MTNL -2.65 5.29 -0.07 27.98
Reliance Communication -5.42 24.66 -0.02 608.11
Tata Services -2.89 1.74 0.02 3.01
Vodafone Idea -5.52 29.50 0.13 870.01
Table showing the risk of selected Telecommunication sector

12. FINDINGS
• The beta value of SBI stock is 0.13 that is less than 1. This shows that the movements of SBI inventories are less
volatile than those of the market.
• The RSI value of the study is 62.88. The values suggest that the buyer is supposed to retain the stock in the future
to increase the price point. This shows that in the next few days the stock will show a growing trend.
• If the MACD is above 0, the short-term average exceeds the long-term average, and then the stock will shoot
upward.
• The higher the standard deviation the greater the risk is. According to standard deviation, IDBI (16.60) has a low
risk compared to SBI (43.92), HDFC (294.42), Axis (112.10), and ICICI (89.53).
• From the above table it reveals that the arithmetical mean of HDFC yields high average returns (1.83) relative to
other such as SBI(-1.65), Axis(-1.99), ICICI(-1.01), and IDBI(-3.07) respectively.
• According to the Beta estimate HDFC (016) has a high risk compared to SBI (0.13), Axis (0.16), ICICI (0.05), and
IDBI (-0.01).
12

13. SUGGESTIONS
Before investing, an investor should have clear knowledge of the stock market and then it is the
responsibility of the company to notify the investor of all kinds of possible investment alternatives.
The marketer will seek to increase and increase the investment over the longer term, as long-term
investment benefits the company.
It should also be borne in mind that the organization's primary goal should not only be to keep more
and more funds in the bank, but also to anticipate future shifts in the valuation of the properties.
As in the stock market, half the knowledge is highly risky. The company is also responsible for training
employees and skilled analysts to make them stock market experts so that they can be professionals
without misinforming or hesitating to answer investor questions and fix investor confusions to increase
investor confidence.
13

14. CONCLUSION
The stock exchange's health today is entirely dependent upon the investment behavior of the
investor. As the financial market changes rapidly, investors must try to keep up with market dynamics on
the right opportunities. In a nation, the financial market represents economic growth which provides the
financial input needed for the development of the country.
Investors should also weigh various factors, such as India's government budget, business results, social
and political trends, environmental conditions, and so on, before making any decision. Analysis provides a
better picture of stocks and also provides the right direction for investors to start buying and selling stocks.
Analysis can provide great insights, but inaccurate signals can also occur if misused. Given the dynamic
nature of stock prices, combined performance evaluations would increase the percentage of accuracy and
thus offer the investor an idea of investing in the stock which will give him good returns.
14

15. “THANK YOU
15