Security Analysis of Selected Stocks at BSE

Security Analysis of Selected Stocks at BSE

M. Abdul Basid1, C. Bhanu Prakash2
1Asst Prof, Dept of MBA, Santhiram Engineering College, Nandyal, India.

2Student of MBA, Santhiram Engineering College, Nandyal, India.

ABSTRACT
The Indian stock market has emerged as a significant platform for wealth creation and investment, with the Bombay Stock Exchange (BSE) being one of the oldest and most influential stock exchanges in Asia. This research project titled “Security Analysis of Selected Stocks at BSE” aims to evaluate the financial performance, risk-return characteristics, and market trends of selected companies listed on the BSE through a systematic and analytical approach. The study employs both fundamental analysis and technical analysis to provide a comprehensive understanding of each stock’s intrinsic value and market behavior.

Fundamental analysis is conducted using key financial metrics such as Earnings Per Share (EPS), Price-to-Earnings (P/E) Ratio, Price-to-Book (P/B) Ratio, Return on Equity (ROE), and Debt-to-Equity Ratio. These indicators help assess the financial strength, profitability, valuation, and leverage position of the selected companies. In addition, technical analysis is performed using tools such as moving averages, Relative Strength Index (RSI), Bollinger Bands, and MACD (Moving Average Convergence Divergence) to understand short-term price movements, trading volume patterns, and investor sentiment.

The study includes a diversified sample of stocks from various sectors such as Information Technology, Banking, Pharmaceuticals, FMCG, and Automobile, with the objective of comparing sector-wise performance and risk exposure. Historical data is analyzed over a defined time frame to identify trends, volatility, and potential entry/exit points. The beta coefficient is used to assess the systematic risk of each stock relative to the overall market, which helps in constructing a balanced and diversified investment portfolio.

Moreover, the study emphasizes the importance of portfolio diversification, investment planning, and risk management in the context of the Indian equity market. The findings highlight the role of analytical tools in making informed investment decisions and achieving long-term financial goals. The study also reflects on the impact of macroeconomic factors, market news, and investor psychology on stock prices.

This research is valuable for individual investors, financial analysts, portfolio managers, and academicians interested in the Indian stock market. It provides actionable insights and practical guidance for evaluating stocks, optimizing investment strategies, and minimizing risks. Ultimately, the study underlines that a disciplined and analytical approach to security analysis is essential for success in the dynamic environment of the BSE.

Keywords: Security Analysis, Bombay Stock Exchange (BSE), Fundamental Analysis, Technical Analysis, Stock Valuation, Investment Decision, Risk and Return, Portfolio Diversification, Beta Value, EPS, P/E Ratio, Financial Performance, Equity Market, Investor Behavior, Indian Stock Market.