A Study on Price Movement of Shares with Respect to Automobile Sector

A Study on Price Movement of Shares with Respect to Automobile Sector

Abstract

In recent years, the Indian stock market has seen amazing and incredible expansion. This is mostly due to rising income levels and a shift in investment behavior. The effect of yearly performance on the price movement of company shares remains an important study topic in finance. Some businesses have a high price-to-earnings ratio, yet their share price moves insignificantly. In this article, fundamental analysis of four businesses for the purpose of data analysis has been conducted, which comprises economic analysis, industry analysis, and company analysis. The GDP growth of India and industry, industrial production, and growth rate were all examined in this study. Quarterly financial reports are evaluated for business performance using factors such as EPS, P/E, and Quality of Earnings ratio. The sample is drawn from the automobile industry and BSE-listed businesses. These businesses were chosen as a purposeful sampling. 

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This study seeks to determine the relationship between share price fluctuation and the performance of their individual businesses. It is clear that the price quotes on most stock exchanges fluctuate dramatically from day to day. It is impossible to determine if the main reasons of stock market price swings are economic or psychological reality. This is a significant problem since it takes into consideration the yearly performance of businesses as well as the price fluctuations of their shares to investors.


Introduction

The automotive industry is a major participant in both the world and Indian economies. In 1991, the Indian automotive industry started on a new path with the de-licensing of the sector and the subsequent opening up to 100 percent FDI through the automatic method. In India, the automotive sector directly employs about 5 lakh people. It provides 4.7% of India's GDP and 19% of India's indirect tax income. Until the early 1980s, there were few participants in the Indian auto industry, which was plagued by low production volumes, outdated and inferior technology. Due to the entrance of global companies, the industry has expanded quickly as a result of de-licensing and opening up to FDI. The rising buying power of the Indian middle class, along with the country's robust economic development in recent years, has enticed global automakers to enter the Indian market. 

For More Details About a Study on Price Movement of Shares with Respect to Automobile Sector Please Visit Our Website


Or call us +91 9481545735

From 2001-02 to 2005-06, the Indian automotive industry grew at an annual rate of more than 18% in terms of value of production at constant 1993-94 prices, while the auto-component sector grew at a pace of nearly 26%. The effect of yearly performance on the price movement of company shares remains an important study topic in finance. Some businesses have a high price-to-earnings ratio, yet their share price moves insignificantly.


Conclusion

Investors are interested in forecasting the stock market's future behavior. The investor should consider the price fluctuations of the specific business over time and choose for a better portfolio. The current state, future goals of the business, information that may influence purchasing choices, and so on are all accessible in financial reports, which is critical for analysis. Speculative or emotional considerations do influence share price movement. However, this is just a short-term impact; in the long run, yearly performance is the only element influencing price change.

For More Details About a Study on Price Movement of Shares with Respect to Automobile Sector Please Visit Our Website


Or call us +91 9481545735

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