International Journal of Current Research and Academic Review
ISSN: 2347-3215 Volume 1 Number 3 (2013) pp. 79-88
An Application Oriented Approach to Stock Investment
M.K.Singh1 *and Amit Kumar2
1Vinoba Bhave University, Jharkhand, India 2Vinoba Bhave University, Jharkhand, India
A B S T R A C T
There are two structured research methods of selecting a stock - value based methods and the price based methods. Both the methods employ the concept of security and fundamental analysis in developing a robust process which can be adopted by investors and traders alike. The Value Investing Method of Stock Investment assumes wider significance in Indian context, as the Indian financial market is primarily a sentiment driven market. The fundamental analysis coupled to an appropriate sentiment analysis of a share can give the investor the right entry point into a particular counter. At the end of the day it doesn t matter What you Buy but the Price at which you Buy makes all the difference. The method considers both the abovementioned parameters equally important while deciding on the investment. The method would help the investors by minimizing the odds of suffering irreversible losses and maximizing the chances of achieving sustainable gains. The paper aims at assessing whether security analysis based on price based methods still holds true in the present scenario when the market today is predominantly sentiment driven. This will be ascertained by researching a leading Public Sector Bank, Bank of Baroda, and analyzing the financials of the company based on the various fundamental and financial parameters. The paper will also aim at analyzing a company s future prospects and recommending BUY or SELL based on the findings.
Keywords
Economic growth; Stock Investment Sector Bank; Bank of Baroda; analyzing the financials; Public Sector Bank sensitivity