Fundamental Analysis banking
Executive Summary
An investor who would like to be rational and scientific in his investment activity has to evaluate a lot of information about the past performance and the expected future performance of companies, industries, and, the economy as a whole before taking an investment decision. Such evaluation or analysis is called Fundamental Analysis.
Indian Economy has covered a long ground since it was liberalized in 1991. Today, India has the fourth largest economy in terms of purchasing power parity (PPP) behind only the USA, China, and Japan.
The Indian economy after reporting fairly robust growth of over 9 per cent during 2005-08, moderated to a growth of 6.7 per cent in 2008-09 because of the global financial crisis. Because there was fiscal and monetary space, timely stimulus allowed the economy to recover fairly quickly to a growth of 8.4 per cent in 2009-10 and 2010-11. Since then, however, the fragile global economic recovery and a number of domestic factors have led to a slowdown once again.
India's GDP grew by 9.3% in 2010–11; thus, the growth rate has nearly halved in just three years. GDP growth rose marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous quarter. The government has forecast a growth rate of 6.1%–6.7% for the year 2013–14, whilst the RBI expects the same to be at 5.7%. Besides this, India suffered a very high fiscal deficit of US$ 88 billion (4.8% of GDP) in the year 2012–13. The Indian Government aims to cut the fiscal deficit to US$ 70 billion or 3.7% of GDP by 2013–14.
Inflation in India is at an acceptable level and remains much lower than in many other developing countries. But off late prices of essential commodities such as food grain, edible oil, vegetables etc have risen sharply and in the process driving up the inflation rate.
Since the year 2010 the INR value is continuously decline as compare to US$ which depreciate the Indian rupee. A number of factors can cause currency depreciation,
An investor who would like to be rational and scientific in his investment activity has to evaluate a lot of information about the past performance and the expected future performance of companies, industries, and, the economy as a whole before taking an investment decision. Such evaluation or analysis is called Fundamental Analysis.
Indian Economy has covered a long ground since it was liberalized in 1991. Today, India has the fourth largest economy in terms of purchasing power parity (PPP) behind only the USA, China, and Japan.
The Indian economy after reporting fairly robust growth of over 9 per cent during 2005-08, moderated to a growth of 6.7 per cent in 2008-09 because of the global financial crisis. Because there was fiscal and monetary space, timely stimulus allowed the economy to recover fairly quickly to a growth of 8.4 per cent in 2009-10 and 2010-11. Since then, however, the fragile global economic recovery and a number of domestic factors have led to a slowdown once again.
India's GDP grew by 9.3% in 2010–11; thus, the growth rate has nearly halved in just three years. GDP growth rose marginally to 4.8% during the quarter through March 2013, from about 4.7% in the previous quarter. The government has forecast a growth rate of 6.1%–6.7% for the year 2013–14, whilst the RBI expects the same to be at 5.7%. Besides this, India suffered a very high fiscal deficit of US$ 88 billion (4.8% of GDP) in the year 2012–13. The Indian Government aims to cut the fiscal deficit to US$ 70 billion or 3.7% of GDP by 2013–14.
Inflation in India is at an acceptable level and remains much lower than in many other developing countries. But off late prices of essential commodities such as food grain, edible oil, vegetables etc have risen sharply and in the process driving up the inflation rate.
Since the year 2010 the INR value is continuously decline as compare to US$ which depreciate the Indian rupee. A number of factors can cause currency depreciation,