SYNOPSIS ON

COMPARISION BETWEEN

ICICI BANK

ANDHDFC BANK

Submitted by: Jasmine kaur Enrollment No.

SIXTH SEM.

INSTITUTE OF MANAGEMENT TECHNOLOGY CENTRE FOR DISTANCE LEARNING,GHAZIABAD

STATEMENT ABOUT THE PROBLEM

Religare believes in empowering the investment needs of its clients. For its services in equity & derivatives, it is driven by a powerful Research cell and group of analyst. They ensure that the best possible investment advice is given to the investors. Financial institutions had a research cell because it was in good form to have one. Likewise, large brokers setup equity research cell to satisfy the institutional clients. With the entry of foreign institutional investors and the emergence of more discerning investors, the need of equity research is felt more widely. Indeed equity research is a growing area.

Also as an investor it is very important to know where and how money is invested. In todays competitive world and with the rise of inflation every individual wants to earn something extra. And investments are a very good solution to this issue. But investment would prove to be fruitful if done with proper understanding. It is usually perceived that investment in the stock market is very risky as the market is very volatile, and moreover people are not very much willing to take loss and risk and thus want to go in for a safe investment.

But investment in the stock market can be beneficial if done with patience and proper understanding. It should not be done in a hurry or with the purpose of gambling. So a proper study if a stock becoming relevant before investing. Keeping this fact and Religares objectives in mind, I formed the base of my project, Fundamental and Technical analysis, which are the two main approaches to equity research.

Before starting with the project I want to get a brief about what do people think and what goes in their mind when they think of investments. What do they think of stock markets as a medium of investment? For this purpose I will undertake a very general survey, which will help me gauge about the mind set of people. Since I am new to this field and the practical exposure is very new to me, so before starting with actually analyzing the stocks I wanted to know about what people think and what their perception is. This will be done with the help of a questionnaire. The results will help me understand the investment pattern of people, their outlook towards stock markets, the amount of risk they are willing to take, their preferred investment option, etc.

WHY IS THIS PARTICULAR TOPIC CHOSEN

For my project, I will take up banking stock. The study will require me to study these stocks both fundamental and technical and analyze how sound are they for investing. For starting with the analysis of the stocks I will first get a brief overview about the markets and their functioning, then I will study the basic fundamental (theory part) of how an Analyst researches. Various parameters will be selected on the basis on which bank stocks can be analyzed and their performance can be judged.

Since equity research is an important aspect of Religares working, the project would also help to compare and analyze the banks taken up in my study. The report gives the complete information of how these stocks are performing, both fundamentally and technically. Comparative analysis will be drawn towards the end on the basis of important parameters like NIM, NII, Capital Adequacy Ratio, Net NPAs and Net Profit.

The biggest part of fundamental analysis involves delving into the financial statements. Also known as quantitative analysis, this involves looking at
revenue, expenses, assets, liabilities and all the other financial aspects of a

company. Fundamental analysts look at this information to gain insight on a

company's future performance. A good part of this tutorial will be spent learning about the balance sheet, income statement, cash flow statement and how they all fit together. But there is more than just number crunching when it comes to analyzing a company. This is where qualitative analysis comes in - the breakdown of all the intangible, difficult-to-measure aspects of a company. Finally, we'll wrap up the tutorial with an intro on valuation and point you in the direction of additional tutorials you might be interested in.
Fundamental analysis is the cornerstone of investing. In fact, some would say

that you aren't really investing if you aren't performing fundamental analysis When talking about stocks, fundamental analysis is a technique that attempts to determine a securitys value by focusing on underlying factors that affect a company's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements.

Technical Analysis Technical analysis approaches the decision-making process by examining the market for the financial instrument itself. The data from the market are primarily the price, volume and, in futures markets, the open interest. Technical analysis is not concerned with the value of whatever underlies the financial instrument, but with how the forces of supply and demand are impacting upon its price. Technical analysis does not concern itself with a company's basics or fundamentals. Rather, technical analysis involves the study of a stock's trading patterns through the use of charts, trend lines, support and resistance levels, and many other mathematical analysis tools, in order to predict future movements in a stock's price, and to help identify trading opportunities.

WHAT CONTRIBUTION WOULD THE PROJECT MAKE

The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), and the increased participation of private sector banks. At the same time, Indian banking stands at the threshold of a mega change in the next five years.

The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. New foreign banks have been equally keen to gain a foothold in the Indian market. This analysis of the Indian Banking sector will bring about some key issues and results about investment, from an investor point of view.

OBJECTIVES AND SCOPE OF THE STUDY OBJECTIVES

To study a few the banking stocks, understand the working of the sector as a whole in todays economy and analyze the stocks on the basis of relevant parameters.

To Perform a fundamental and technical analysis for specific Banks.

To study the investors preferences through a questionnaire to get a general understanding.

Purpose of the project

The project will completely analyze the economy and cover all the important aspect which would determine the health of a banking stock. So it is like a complete guide with the view of keeping research in mind, for some one who wants to study these stocks and draw a comparative analysis between them.

METHODOLOGY

METHODOLOGY TO BE FOLLOWED

First of all, it will require me to get fully aquatinted with the working of the company and to understand the various services provided.

A very small survey to get the perception of people vis--vis investments

Reading about equity research and processes followed for that.

Understand the basic functioning of banks and the important parameters on the basis of which they are analyzed.

Collecting data of financial statements and technical charts for my study and analysis

 Studying the annual reports of the banks and Religares research report also.

Comparative Analysis between banks and drawing out my conclusion.

CHAPTERISATION SCHEME
1. 2. 3. 4. 5. 6. Executive Summary Introduction Objective Methodology Schedule of the Project Literature Support

Equity Research Types of Charts Tools for Technical Analysis 7. Data Collection 8. Analysis of the Questionnaire 9. The Top-Down Approach 10.Ratios for Evaluation 11.Fundamental & Technical Analysis- Approach 12.Banks Selected For Analysis HDFC ICICI SBI Andhra Bank Centurion Bank Of Punjab

14. Comparative Analysis 15. Conclusion & Recommendation 16. References 17. Annexure Company Profile Questionnaire Financial Statements

PROPOSED QUESTIONNAIRE

Following is a short survey to get the consumers insight on their investment preferences and patterns. Kindly spare a few minutes to fill out the following. It would be most invaluable for my project. Name : (Mr. / Mrs.) Occupation : 1. Annual income : Less than Rs. 2.5 lakhs Rs. 4 - 7 lakhs lakhs 2. Investment Presently Held: Please list the value of the assets in your total investments portfolio :( in Rs.) Stocks: ______ Bonds: ______ Options: ______ Real Estate: ______ Mutual Funds: _______ Bullion: _______ Govt. Securities:_______ Bank Deposits: _______ Rs 2.5 - 4 lakhs More than Rs. 7

Contact no. :

3. What is your Experience in the market? Less than a year 1-4 years More than 4 years

4. What is your Trading Preference? Speculation Investment

Both

5. What is your Average investment period? Less than 3 months. 3 to 9 months. 9 months to 2 year. More than 2 year.

6. Factors influencing the investment decisions? Advice from Broker Current news Reviews in Financial Magazines Advice from Friends Self Evaluation Others___________

7. How much Risk are you willing to take? High Low 8. How much loss are you willing to take? Less Than 5% 5-10%

Moderate

more than 10%

9. How much Appreciation do you expect from your Investments? up to 15% 15%-25% 25%-35% more than 35% 10. Do u read any business magazine? if yes..

CONSENT LETTER TO WHOM SOEVER IT MAY CONCERN THAT GAURAV KHATRI IS PREPARING A PROJECT UNDER MY GUIDANCE AND SUPERVISION ON A Systematic Study on Fundamental
and Technical Analysis With Particular Reference ToTHE INDIAN BANKING SECTOR

NAME:SONALI JAIN DESIGNATION:DEPUTY MANAGER (HDFC BANK) COMPANY NAME:HDFC BANK

Thank you! Have a nice day!