Technical and Fundamental Analyses of Sensex Representative Companies

Abstract

Investing in various types of financial assets is an interesting activity that attracts people from all walks of life irrespective of their occupation, economic status, education and family background. When a person has more money than he requires for current consumption, he would be coined as a potential investor. The investor who has extra cash could invest it in securities or in any other assets like gold, silver, or real estate or could simply deposit it in his bank account. The companies that have extra income may like to invest their money in the extension of the existing firm or undertake a new venture. All the other activities in a broader sense mean investment. Investment is the employment of funds on assets with the aim of earning income or capital appreciation. Investment has two attributes namely time and risk. Present consumption is sacrificed to get a return in the future. The sacrifice that must be born is certain but the return in the _future may be uncertain. This attribute of investment indicates that risk factor. The risk is undertaken with a view to reap some return from the investment, for a layman, investment means some monetary commitment. Economic factors play a major role in any investment decision, which is made for making a gain and better return. Economic analysis and forecasting company performance and return is necessary for making investments. The performance of a company depends on the state of the economy. If the economy is in recession the performance of companies will be bad. If the economy is booming, incomes are rising and demand is increasing, the company's performance in general may be prosperous.