• SANGITA CHAUDHARY
• FARMAN ALI

The purpose of this paper is an attempt to reach a better stock valuation model of the Fundamental Analysis Approach, by reviewing the theoretical foundations and literature reviews. This paper aims to study on Fundamental analysis of selected listed companies at NSE/BSE. Fundamental analysis is studied in three parts. Economic analysis deals with fundamental factors like GDP, IIP, fiscal deficit, inflation, current account deficit etc. Industry analysis Indian IT sector is analyzed based on entry barriers, type of industry, government interference, Porter’s five force model. Finally, Company analysis deals with various ratios such as dividend payout ratio, EPS, P/E ratio, Debt-Equity ratio are used. It also focuses on the calculation of intrinsic value of shares and compared with Market value. If intrinsic value is greater than market value the share is said to be undervalued whereas if market value is greater than intrinsic value, the share is overvalued. Fundamental analysis is one of the most widely used methods for estimating price movements of securities which essentially analyses the impact of micro and macro-economic factors on the business of the corporation in order to predict future economic and financial effects. This research paper also examine various financial statements with the aim to asses a real value of company's stock. This work has the task to systematize knowledge about fundamental analysis, so it can serve as a good base for future research.

Key words: Correlation matrix analysis , inflation , Interest rates , Tax structure ,Savings and investment.

"EFFECT OF MACROECONOMIC VARIABLE ON STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 4, page no.49-53, April-2019, Available :http://www.jetir.org/papers/JETIR1904H12.pdf

"EFFECT OF MACROECONOMIC VARIABLE ON STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 4, page no. pp49-53, April-2019, Available at : http://www.jetir.org/papers/JETIR1904H12.pdf