A STUDY ON EQUITY ANALYSIS WITH REFERENCE TO IT INDUSTRY

Abstract

Each investor craves for fair return on his/her investments, stockholders can obtain maximum return on investments in equity market which involves more risk as compared to other alternatives. Stockholders must be aware of the risk and return elements of those equity securities and the stock market. Equity analysis helps the stockholders to understand about risk and return elements associated with equity market and assists them in taking informed and rational investment choices. Especially IT Industry being the fastest growing industries in our country it is necessary to analyse the risk and return associated with the Industry stocks as the volume of stocks trading has accentuated at a steadfast speed in recent times. In this background, a research has been organized to analyse the risk and return of selected equity stocks in the IT sector of Indian stock market. The data is collected for a period of 5 years i.e., from 1st April 2016 to 31st March 2021. The study is based on secondary data (historical data), it compares the performance of each stock taking NIFTY 50 index and NIFTY IT index as benchmark. From the analysis, ORACLE and L&T have given highest return with moderate risk. ORACLE is the best company to invest, as it produced more returns and having moderate risk with less than one beta and high alpha value.