Fundamental and Technical Analysis of Bharti Airtel

5585 Words Aug 10th, 2013 23 Pages
ASSIGNMENT
ON
FUNDAMENTAL ANLAYSIS OF BHARTI AIRTEL

SUBJECT:- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

SUBMITTED TO
Dr. Hussain Yaganti

SUBMITTED BY
1. Devisetty Yeswanth 2008A7PS038H 2. G Sai Kaushik 2008A2PS300H

BITS PILANI HYDERABAD CAMPUS

FUNDAMENTAL ANALYSIS
Fundamental analysis is the examination of the underlying forces that affect the well being of the company, industry groups and companies. As with most analysis the goal is to develop a forecast of future price movement and profit from it. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level their might be an examination of supply and demand forces of the products. For the
…show more content…
Analysts believe that inflation is likely to remain firm in the medium-term mainly due to last year's lower base effect and other driving factors like high food price inflation, recovery in the global economy and ample liquidity.

Impact on equity market: The rise in the inflation rate impacts the market sentiments. Higher inflation and monetary policy tightening measures will fuel negative sentiments in the markets as a higher interest rate regime will result in higher cost of borrowing funds for the companies. This would have an immediate impact on the valuations of capital intensive companies and sectors in the stock markets. On the other hand, it will be more difficult for the government to implement some of the reforms measures such as reducing the subsidy on fuel products. This will mean a higher fiscal deficit and therefore add to the negative market sentiments.

India’s Interest Rate

The benchmark interest rate (reverse repo) in India was last reported at 5.75 percent. In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. From 2000 until 2010, India's average

interest rate was 5.82 percent reaching an historical high of 14.50 percent in August of 2000 and a record low of 3.25 percent in April of 2009.

Interpretation: Data here shows that the
Open Document