“COMPARATIVE ANALYSIS OF EQUITY MARKET AND GOLD MARKET”

Presented By: Ankur Shrivastava 12BSP0186

INTRODUCTION:-

In our share broking industry there are many investor who are investing

money in various investment options , but the large amount of investment

is done in Equity Market and Gold Market.

The important part of the project was to find out the best investment

options and which market has given good returns. The next part was to

understand the share broking industry and how does it work.

In middle of the project it was found that in relation to Nifty and Gold,

individual stock has given more returns. In this project the analysis is done

between Nifty ,Individual Stock and Gold.

OBJECTIVE :

•To enumerate the returns of gold market and Equity market.

•To formulate that which market has given good returns.

•To find out whether individual stock affects a lot in our investment decisions.

•To find out which investment option is best.

Methodology:

Calculations in the MS-Excel.

Statistical tools used for analysis.

Returns in percentage.

EQUITY MARKET:

The market in which shares are issued and traded, either through

exchanges 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. 

DERIVATIVES MARKET

A security whose price is dependent upon or derived

from one or more underlying assets. Derivatives are

generally used as an instrument to hedge risk, but

can also be used for speculative purposes.

Derivatives

Futures Options

ANALYSIS OF NIFTY AND GOLD RETURNS

Gold Nifty

Investment 2000000 2000000

Valuation 8986386 6843452

1000000

3000000

5000000

7000000

9000000

11000000

Nifty and Gold Returns Interpretation :

In this we can see that

within 20 years gold

has given more

returns but there are

various factors for

which the analysis has

been done to find out

the main reason why

nifty has not given

returns.

ANALYSIS OF RETURNS BETWEEN L&T AND GOLD

Gold L&T

Investment 2000000 2000000

Valuation 8986386 19938663

2500000

7500000

12500000

17500000

22500000

Gold and L&T Returns

Axis Title

Interpretation:

We can figure out that the person

who is investing money in L&T; he

has got a good amount of returns.

As we do comparison in numbers

the total valuation of 20 lakhs

investment done in L&T is around

19938663.01 and DIVIDEND the

person has got around 1535253.07.

But in gold the valuation is very low

as compared to this it is only

8986386.91.

ANALYSIS OF SBI AND GOLD RETURNS

GOLD SBI0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

SBI and Gold Returns

VALUATIONINVESTMENT

Interpretation:

We can figure out that the person

who is investing money in SBI;

he has got a good amount of

returns. As we do comparison in

numbers the total valuation of 20

lakhs investment done in SBI is

around 10024088.34 and

DIVIDEND the person has got

around 1170152.27. But in gold

the valuation is very low as

compared to this it is only

8986386.91.

ANALYSIS OF GOLD , NIFTY, L&T AND SBI IN TERMS OF PERCENTAGE AND INCLUDING BONUS SHARES AND DIVIDEND.

GOLD L&T NIFTY SBI

Returns in Percent-age

0.14 0.21 0.12 0.17

3%

13%

23%

Returns in Per-centage

NIFTY GOLD L&T SBI0

5000000

10000000

15000000

20000000

25000000

DIVIDENDVALUATIONINVESTMENT

Interpretation: In returns with percentage we can see that L&T and SBI has given more returns as compare to nifty and gold , it is because of bonus and dividend which is not shown in nifty.

FINDINGS AND CONCLUSION

The result of the study carried out shows that during the most of the period, we

observed that NIFTY has given less returns in comparison to gold but the

important thing is that in the index as discussed above the various factors are not

considered bonus shares, split stocks, dividend etc. so in nifty the full information

is not available to us.

After the analysis of gold and equity it has been find out that individual stock has

given good returns in compare to both. If they are able to bear the risk then they

can invest in individual stocks as they have given good returns.

The relationship of gold is with currency and in India the gold has given good

returns because of currency only.