Proposal.docx

Name: Anshuman chowbey IBS Campus: Hyderabad

Enrollment No.: 18BSPHH01C0200 Mobile No: 6363929836 E-mail id: [email protected]

INTERNSHIP PROGRAM Proposal I.

Internship Proposed: The main aim of the internship program at Jmarathon is the perform the fundamental and technical analysis of aviation industry and to find out which company to invest in this sector.

II.

Description of Internship in brief: What is Equity Market An equity market is a market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance. Equity markets are the meeting point for buyers and sellers of stocks. The securities traded in the equity market can be either public stocks, which are those listed on the stock exchange, or privately traded stocks. Often, private stocks are traded through dealers, which is the definition of an over-the-counter market. Trading in the Equity Market In the equity market, investors bid for stocks by offering a certain price, and sellers ask for a specific price. When these two prices match, a sale occurs. Often, there are many investors bidding on the same stock. When this occurs, the first investor to place the bid is the first to get the stock. When a buyer will pay any price for the stock, he or she is buying at market value; similarly, when a seller will take any price for the stock, he or she is selling at market value. Companies sell stocks in order to get capital to grow their businesses. When a company offers stocks on the market, it means the company is publicly traded, and each stock represents a piece of ownership. This appeals to investors, and when a company does well, its investors are rewarded as the value of their stocks rise. The risk comes when a company is not doing well, and its stock value may fall. Stocks can be bought and sold easily and quickly, and the activity surrounding a certain stock impacts its value. For example, when there is high demand to invest in the company, the price of the stock tends to rise, and when many investors want to sell their stocks, the value goes down. Fundamental Analysis Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups and companies. As with most analysis, the goal is to develop a forecast of future price movement and profit from it. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces of the products. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy.To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stock’s fair value called intrinsic value. If fair value is not equal to the current stock price, fundamental analysts believe that the stock is either over or under valued. As the current market price will ultimately gravitate towards fair value, the fair value should be estimated to decide whether to buy the security or not. By believing that prices do not accurately reflect all available information, fundamental analysts look to capitalize on perceived price discrepancies.

Three phases of fundamental analysis: 1)Understanding of the macro-economic environment and developments (Economic Analysis) 2) Analysing the prospects of the industry to which the firm belongs (Industry Analysis) 3)Assessing the projected performance of the company (Company Analysis) Phase First

Nature Economic Analysis

Second

Industry Analysis

Third

Company Analysis

Purpose To access the general economic situation of the nation. To assess the prospects of various industry groupings.

To analyse the Financial and Nonfinancial aspects of a company to determine whether to buy, sell or hold the shares of a company.

Tools & Tech. Economic indicators

Industry life cycle analysis, Competitive analysis of industries etc. Analysis of Financial aspects: Sales, Profitability, EPS etc. Analysis of Non-financial aspects: management, corporate image, product quality etc

Technical analysis Technical analysis is directed towards predicting the price of a security. The price at which a buyer and seller settle a deal is considered to be the one precise figure which synthesis, weighs and finally expresses all factors, rational and irrational, quantifiable and nonquantifiable and is the only figure that counts. Tools and techniques of technical analysis: There are numerous tools and techniques for doing technical analysis. Basically this analysis is done from the following four important points of view:1)Prices: Whenever there is change in prices of securities, it is reflected in the changes in investor attitude and demand and supply of securities. 2)Time: The degree of movement in price is a function of time. The longer it takes for a reversal in trend, greater will be the price change that follows. 3)Volume: The intensity of price changes is reflected in the volume of transactions that accompany the change. If an increase in price is accompanied by a small change in transactions, it implies that the change is not strong enough. 4)Width: The quality of price change is measured by determining whether a change in trend spreads across most sectors and industries or is concentrated in few securities only. Study of the width of the market indicates the extent to which price changes have taken place in the market in accordance with a certain overall trends. Aviation Industry: The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.

Market Size India’s passenger traffic grew at 16.52 per cent year on year to reach 308.75 million in FY18. It grew at a CAGR of 12.72 per cent during FY06-FY18. Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293.28 million in FY20E. International passenger grew YoY by 10.43 per cent to reach 65.48 million in FY18 and traffic is expected to become 76 million in FY20E. In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes. India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.63 thousand and 437.93 thousand during 2017-18, respectively. During Apr-Nov 2018, passenger traffic in India stood at 226.80 million. Out of which domestic passenger traffic stood at 181.72 million while international traffic stood at 45.08 million. Total freight traffic handled in India stood at 2.41 million tonnes during the same time. During Apr-Nov 2018, domestic aircraft movement stood at 1.43 million while international aircraft movement stood at 0.30 million. As of December 2018, India has 102 operational airports. As of May 2018, there are nearly 588 commercial aircraft in operation in India.

III.

Objective of the Internship: Objectives of fundamental analysis:  To predict the direction of national economy because economic activity affects the corporate profit, investor attitudes and expectation and ultimately security prices.  To estimate the stock price changes by studying the forces operating in the overall economy, as well as influences peculiar to industries and companies.  To select the right time and right securities for the investment. Objectives of technical analysis: 

To predict the short-term trade direction and forecast the day to day movements of the stock.

To find out which stock is better to invest in short run and in long run.

IV.

Action Plan:

V. VI.

Schedule: Limitation:

Faculty Guide Name: Company Guide Name:

Date: Signature of the Student