ANALYZING SECTOR PERFORMANCE: A COMPARISON OF FUNDAMENTAL AND TECHNICAL APPROACHES
Keywords:
Equity, Mutual Funds, Stock Performance, Investor Preference, Stock MarketAbstract
In 2022, India experienced a notable increase in the annual inflation rate, rising from a revised 4.06% in the previous year to 6.01%. Due to the limited interest rates provided by banks on savings accounts, which average between 3.5% to 4%, many Indian individuals are turning towards mutual funds and equity as alternative investment options. The Securities & Exchange Board of India with the Indian government are both actively encouraging investment awareness, leading to an increased interest in the equity market. While fixed deposits and PPFs remain the preferred investment options for traditional investors, there is a growing openness to stock market investments. To mitigate risks associated with stock market investments, numerous theories & models has been developed. Two basic primary methods used to analyze market risk and volatility are fundamental analysis and technical analysis. This study aims to examine the stock performance of 12 firms from four different sectors, including IT, Banking, Automobile and Health. Data for this research will be obtained from secondary sources such as Money Control and other websites. By evaluating fundamental and technical analysis, this study seeks to demonstrate the significance of these methods in investment decisions and rank sectors based on their performance and investor preference.
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Copyright (c) 2023 P Lavanya, P Rajini (Author)
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