Performance analysis of selected Banking and Telecommunication sector stock in India - PPT
- 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
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- 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