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Abstract
Investment decision is a part of our economic life. Everybody takes such decision at different context. Investment decisions are to be made in a systematic manner with two approaches such as technical and fundamental analysis. The present study aims to analyse the fundamental analysis of BSE listed FMCG companies in India with a sample size of six companies for a period from 2006-07 to 2011-12. The objectives of the study are to conduct Fundamental analysis for BSE listed FMCG companies and the SWOT analysis for the FMCG industry. The Economic, Industry and company analysis have been made to attain the objectives of the study. From the Economic analysis, it is found that Gross National Product, Inflation, Interest rates, Exchange rate, Foreign exchange reserves, Agricultural production, Government Receipts and Expenditure has a positive growth rate during the study period. Gross Domestic Product, Gross Domestic Capital Formation, Gross Domestic Savings and Balance of Payments have a negative growth rate during the study period. The industry analysis found that India's FMCG sector is the 4th largest sector with the total market size of US$ 13 billion during the year 2012. This sector is expected to grow to US$ 33.1 billion by 2015. Hence, it has great potential in rural as well as urban market and it provides more employment opportunities.
Keywords
fundamental analysis, economic, FMCG Industry, India
Introduction
India is one of the top five economies in the world in terms of market potential and ranked as the third biggest economy in Asia in terms of gross domestic product. All these make investment in India a lucrative option for the investors across the world. The capital market of India forms an important part of the development of the nation. Nowadays people are showing more interest to invest in shares or derivatives. Investors are more conscious about the fluctuations in the stock market. In order to minimize the risk, the investors should know about the past performance of the company, market fluctuations, reason for fluctuation, economic policy and inflation etc., before making an investment in securities. Otherwise, the investors can be applied security analysis. There are two alternative approaches for security analysis such as technical and fundamental analysis. Technical analysis is a method of evaluating securities...