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ISSN:2277-7881; IMPACT FACTOR :8.017(2023); IC VALUE:5.16; ISI VALUE:2.
286
Peer Reviewed and Refereed Journal: VOLUME:12, ISSUE:6(6), June: 2023
Online Copy of Article Publication Available (2023 Issues)
Scopus Review ID: A2B96D3ACF3FEA2A
Cover Page Article Received: 2nd June 2023
Publication Date:30th June 2023
DOI: http://ijmer.in.doi./2023/12.06.105 Publisher: Sucharitha Publication, India
www.ijmer.in Digital Certificate of Publication: www.ijmer.in/pdf/e-CertificateofPublication-IJMER.pdf
A STUDY ON EQUITY ANALYSIS WITH REFERENCE TO IT SECTOR
Mr. Rajesh Babu Nagabhairu

Assistant Professor, SJB Institute of Technology, Bengaluru
Abstract:
India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities
to get high returns, and to save tax in honest way. Equities are playing a major role in contribution of capital to the
business from the beginning. Since the introduction of shares concept, large numbers of investors are showing interest to
invest in stock market .In an industry plagued with skepticism and a stock market increasingly difficult to predict and
contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor. The
price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. If
prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis)
becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a
security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that
the average investor cannot disprove Fundamental analysis and technical analysis can co-exist in peace and complement
each other. Since all the investors in the stock market want to make the maximum profits possible, they just cannot afford
to ignore either fundamental or technical analysis this session discusses the trade-off and, using conventional statistical
tools, provides a method for quantifying risk. Two categories of risk borne by the firm's stockholders, business risk and
financial risk, are discussed and demonstrated, as is the concept of leverage. The session also examines risk reduction via
portfolio diversification and what requirements need to be met for firms to experience the benefits of diversification. The
Capital Asset Pricing Model (CAPM) is used to demonstrate the risk/return trade-off by relating the required return on
the firm's investments to its beta (or market) risk.
Key words: financial market, Risk, Capital asset, stockholders.
INTRODUCTION:
To start any business capital plays major role. Capital can be acquired in two ways by issuing shares or by taking debt
from financial institutions or borrowing money from financial institutions. The owners of the company have to pay regular
interest and principal amount at end. Stock is ownership in a company, with each other each share of stock representing
a tiny piece of ownership. The more shares you, the more dividends you earn when the company makes a profit in the
financial world, and ownership is called “Equity”.
Stock/shares play a major role in acquiring capital to the business in return investors are paid dividends to the shares they
own. The more shares you own the more dividends you receive. The Role of equity analysis is to provide information to
the market. An efficient market relies on information: a lack of information creates inefficiencies that result in stocks
being misrepresented (over or under valued). This is valuable because it fills information gaps so that each individual
investor does not need to analyze every stock thereby making the markets more efficient
SCOPE OF THE STUDY:

The scope of the study is identified after and during the study is conducted.
• The analysis is made by taking into consideration three companies i.e. TCS, Wipro, Infosys
• The scope of the study is limited for a period of three months.
• The scope is limited to only the fundamental analysis of the chosen stocks
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ISSN:2277-7881; IMPACT FACTOR :8.017(2023); IC VALUE:5.16; ISI VALUE:2.286
OBJECTIVES OF THE STUDY:
• To study the detailed analysis of banking industry this is gearing towards international standards
• To analyze the various risks and returns patterns in shares.
• To compare the three tough competitors TCS, Wipro, Infosys
• To know the risk involved with invests in equities
• To Suggest as to which company’s shares would be best for an investor to invest
REASEARCH METHODOLOGY:
Source of data : Data is collected from the primary data and secondary data
Primary Data: primary data means which is collected personally and observations, for this project there is no primary
data
Secondary data: The data which is represented already. The present study is based on Secondary data
RESEARCH DESIGN:
The various source of secondary data include

 Internet
 Share prices of different NSE companies.
 Information provided by India Bulls Ltd
 Magazines
LIMITATIONS:
• This study has been conducted purely to understand Equity analysis for investors.
• The study is restricted to three companies.
• The study is limited to the companies having equities.
• Detailed study of the topic was not possible due to limited size of the project.
• There was a constraint with regard to time allocation for the research study i.e. for a period of 45 days.
• Suggestions and conclusions are based on the limited data .
DATA ANALYSIS & INTERPRETATION:

TCS
Calculations of returns
Date Open Price Close Price Return (X)
02-May-21 2399.7 2350 2.11
03-May-21 2341 2304.05 1.6
06-May-21 2294 2319.45 -1.1
07-May-21 2320 2330.55 -0.45
08-May-21 2337.9 2277.05 2.67
09-May-21 2280.45 2283.2 -0.12
10-May-21 2180 2169.85 0.47
28
13-May-21 2204.8 2155.45 2.29

14-May-21 2147.05 2101.15 2.18
15-May-21 2116.9 2121.3 -0.21
16-May-21 2145.1 2189.6 -2.03
17-May-21 2185 2137.2 2.24
20-May-21 2142 2125.1 0.8
21-May-21 2126.2 2132.9 -0.31
22-May-21 2132 2135 -0.14
23-May-21 2149 2156.35 -0.34
24-May-21 2154.9 2188.45 -1.53
27-May-21 2212 2300.35 -3.84
28-May-21 2294 2282.6 0.5
29-May-21 2275 2259.85 0.67
30-May-21 2265 2276.05 -0.49
31-May-21 2277 2263.45 0.6
03-Jun-21 2258 2221.85 1.63
04-Jun-21 2229 2186 1.97
06-Jun-21 2190 2182.35 0.35
07-Jun-21 2182.2 2154.55 1.28
10-Jun-21 2160.5 2195.75 -1.61
11-Jun-21 2205 2195.25 0.44
12-Jun-21 2194.8 2208.2 -0.61
13-Jun-21 2218 2200.3 0.8
14-Jun-21 2214 2207.6 0.29
17-Jun-21 2202 2259.3 -2.54
18-Jun-21 2277 2282.65 -0.25
19-Jun-21 2280 2288.9 -0.39
20-Jun-21 2292 2339.3 -2.02
21-Jun-21 2343.8 2313.6 1.31
24-Jun-21 2306 2307.7 -0.07
25-Jun-21 2300 2288.1 0.52
26-Jun-21 2266 2293.1 -1.18
27-Jun-21 2281.5 2323.4 -1.8
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28-Jun-21 2326.7 2313.4 0.57

01-Jul-21 2303 2351.7 -2.07
02-Jul-21 2354.9 2365.55 -0.45
03-Jul-21 2366.6 2361.35 0.22
04-Jul-21 2361.25 2368.25 -0.3
05-Jul-21 2369.7 2379.5 -0.41
08-Jul-21 2384 2334.4 2.12
09-Jul-21 2321 2281.4 1.74
10-Jul-21 2275 2303.7 -1.25
11-Jul-21 2304 2315.35 -0.49
12-Jul-21 2315 2324.4 -0.4
15-Jul-21 2324.4 2344.35 -0.85
16-Jul-21 2348 2249.3 4.39
17-Jul-21 2250 2258.55 -0.38
18-Jul-21 2254.9 2278.75 -1.05
19-Jul-21 2278 2295.1 -0.75
22-Jul-21 2295 2291 0.17
23-Jul-21 2287 2285.35 0.07
24-Jul-21 2265 2306.7 -1.81
25-Jul-21 2304 2318.35 -0.62
26-Jul-21 2322.6 2353 -1.29
29-Jul-21 2345.05 2357.8 -0.54
30-Jul-21 2341 2332.9 0.35
31-Jul-21 2320 2229.8 4.05
Total 4.73
Average Return 0.07
Return = Close price - Open price x 100

Open Price
Calculations of Risk
Return (X) Avg Return (Ex) D = X - Ex D x D =D2
2.11 0.07 2.04 4.18
1.60 0.07 1.53 2.35
-1.10 0.07 -1.17 1.36
30
-0.45 0.07 -0.52 0.27

2.67 0.07 2.60 6.77
-0.12 0.07 -0.19 0.04
0.47 0.07 0.40 0.16
2.29 0.07 2.22 4.93
2.18 0.07 2.11 4.47
-0.21 0.07 -0.28 0.08
-2.03 0.07 -2.10 4.42
2.24 0.07 2.17 4.69
0.80 0.07 0.73 0.53
-0.31 0.07 -0.38 0.15
-0.14 0.07 -0.21 0.04
-0.34 0.07 -0.41 0.17
-1.53 0.07 -1.60 2.57
-3.84 0.07 -3.91 15.29
0.50 0.07 0.43 0.18
0.67 0.07 0.60 0.36
-0.49 0.07 -0.56 0.31
0.60 0.07 0.53 0.28
1.63 0.07 1.56 2.42
1.97 0.07 1.90 3.60
0.35 0.07 0.28 0.08
1.28 0.07 1.21 1.47
-1.61 0.07 -1.68 2.81
0.44 0.07 0.37 0.14
-0.61 0.07 -0.68 0.46
0.80 0.07 0.73 0.54
0.29 0.07 0.22 0.05
-2.54 0.07 -2.61 6.79
-0.25 0.07 -0.32 0.10
-0.39 0.07 -0.46 0.21
-2.02 0.07 -2.09 4.38
1.31 0.07 1.24 1.53
-0.07 0.07 -0.14 0.02
0.52 0.07 0.45 0.20
-1.18 0.07 -1.25 1.57
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-1.80 0.07 -1.87 3.51

0.57 0.07 0.50 0.25
-2.07 0.07 -2.14 4.58
-0.45 0.07 -0.52 0.27
0.22 0.07 0.15 0.02
-0.30 0.07 -0.37 0.13
-0.41 0.07 -0.48 0.23
2.12 0.07 2.05 4.22
1.74 0.07 1.67 2.77
-1.25 0.07 -1.32 1.73
-0.49 0.07 -0.56 0.31
-0.40 0.07 -0.47 0.23
-0.85 0.07 -0.92 0.85
4.39 0.07 4.32 18.65
-0.38 0.07 -0.45 0.20
-1.05 0.07 -1.12 1.25
-0.75 0.07 -0.82 0.66
0.17 0.07 0.10 0.01
0.07 0.07 0.00 0.00
-1.81 0.07 -1.88 3.53
-0.62 0.07 -0.69 0.47
-1.29 0.07 -1.36 1.85
-0.54 0.07 -0.61 0.37
0.35 0.07 0.28 0.08
4.05 0.07 3.98 15.80
4.73 Total 141.97
2
S.D. (⌐) = √∑d /N
S.D = √141.97/64
S.D. = √2.22
S.D. = 1.49
INTERPRETATION:
The above table shows return & risk associated with the price movement of TCS for a month of May, June, July
2021. It has an average return of 0.07 that is 7% and risk is 1.49.
FINDINGS:
1. We can state that Infosys & TCS has good returns, where as other companies showing negative returns. The
risks associated with these companies are very high
32
2. The return associated with the price movement of Tech Mahindra for a month of May, June, July 2021. It
has an average return of -0.05 that is -5%
3. The risk associated with the price movement of Tech Mahindra s 1.82
4. The return associated with the price movement of HCL Technologies for a month of May, June, July
2021. It has an average return of -0.19 that is -19%
5. The risk associated with the price movement of HCL is 1.51
6. The return associated with the price movement of Infosys for a month of May, June, July 2021. It has an
average return of 0.20 that is 20%
7. The risk associated with the price movement of Infosys is 1.38
8. The return associated with the price movement of Wipro for a month of May, June, July 2021. It has an average
return of -0.02 that is -2%
9. The risk associated with the price movement of Wipro is 1.24
10. The return associated with the price movement of TCS for a month of May, June, July 2021. It has an
average return of 0.07 that is 7%
11. The risk associated with the price movement of TCS is 1.49.
SUGGESTIONS:
1. To have a higher return, the investor should be able to accept the fact that he has to be faced with greater
risk.
2. Though high risk leads to high returns, there may be certain cases where more returns cannot be generated.
This may be due to volatility of the market or some other factors.
3. If an investor wants to take risk he can invest in Infosys because reason is the risk is more and at the same time,
it is yielding high returns.
4. Understanding and measuring return and risk in fundamental to the investment process and increases an
awareness of the investment problem.
5. Infosys & TCS has good returns, where as other companies showing negative returns. The risks associated
with these companies are very high
6. The reverse will be the case if the investor is risk averse. That means a risk averse investor invests only in those
securities which are having minimal risk and he is satisfied with the normal returns. Here, in the study, if an
investor is risk averse person, then he will be interested to invest in TCS & Infosys.
7. In some cases, there will be investors who are in a position to face moderate risk. Such kind of people would like
to invest in Axis.
CONCLUSIONS:
Any rational investor, before investing his or her investible wealth in the stock, analyses the risk associated with the
particular stock. The actual return he receives from a stock may vary from his expected return and the risk is expressed in
terms of variability of return. Investors in general would like to analyze the risk helps him to plan his portfolio in such a
manner so as to minimize the risk associated with the investment.
33
BIBLIOGRAPHY:
Books:
The following books are referred to study Equities.
Financial Management - I.M. Panday.
Indian financial system - M.Y. Khan.
Capital market book published by - India Info line
Websites:
w.w.w nseindia.com
w.w.w moneycontrol.com
w.w.w capitalmarket.com
w.w.w capitalline.com
w.w.w investopedia.com
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ISSN:2277-7881; IMPACT FACTOR :8.017(2023); IC VALUE:5.16; ISI VALUE:2.

A STUDY ON EQUITY ANALYSIS WITH REFERENCE TO IT SECTOR

Mr. Rajesh Babu Nagabhairu

Key words: financial market, Risk, Capital asset, stockholders.

SCOPE OF THE STUDY:

OBJECTIVES OF THE STUDY:

The various source of secondary data include

DATA ANALYSIS & INTERPRETATION:

13-May-21 2204.8 2155.45 2.29

28-Jun-21 2326.7 2313.4 0.57

Return = Close price - Open price x 100

-0.45 0.07 -0.52 0.27

-1.80 0.07 -1.87 3.51

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