Fundamental factors and its impact on stock prices with reference to midcap and large cap stocks in india

Abstract

Investors when investing in stock market will always expect appreciation in the stock price. The stock price is always a moving one. Sometimes it goes in line with the expectation and rewards the investors handsomely. On other times it may not meet the expectations and yielding no/negative returns. So to make return in stock market, price movement in the positive side is a necessary one. Everyone in the market will always try to make good return by predicting the price movement. Return performance of the investors and traders depends on price. So they are on the lookout for the factors which is the prime mover of the stock price. That is the reason why the fundamental analysis and technical analysis came into existence. Fundamental analysis tries to estimate intrinsic value of the stock with the help of their financial, accounting, environmental, managerial data. Another issue is the return generated from midcap and large cap stocks. In the stock market, there is always a debate about outperformance of large cap stocks over midcaps and vice versa.