Foreword

 

For most of us, it is a challenging task to identify a sustainable and growing investment opportunity to entrust your hard-earned cash with. However, with advanced data analytics software like R, we can run through several thousands of data points and shortlist potential opportunities and pitfalls. It is important to know the options available around us to make the right decisions at the right time.

For many individual investors in the stock market, it is difficult to run through all those stocks listed and traded in any stock exchange. In this blog, we analyze the daily closing prices of all equity stock and Exchange Traded Funds (ETFs) traded in Bombay Stock Exchange (BSE) (India) from 01-Jan-2007 till 14-May-2020 to identify those companies that were grown steadily over the period of time as well as declined as time passed.

In this exercise, we analysed nearly 1 million records using R software.

In this blog series, we aim to compare companies with growing as well as declining share prices to test the conventional wisdom on financial ratios and financial statement interpretation to throw light on potential opportunities and possible losers.

Data used in this blog series are obtained from www.bseindia.com.

 

 

Know the options:

 

The below table arranges the Equity shares and ETFs basis on their growth in daily closing price from 01-Jan-2007 till 14-May-2020 in BSE. Prices shown in the table are in INR.

This table aims to give an overview on the players in the indian stock market (BSE).

Who is growing and who is drowning:

 

The below graph shows the stocks that are  appreciated and depreciated as time passed. This gives a sense of understanding about the underlined risk in the stock market.  As you can pick a stock from the green zone below, nothing stops the investors picking one from the red zone and that could eventually erode his wealth.

In the upcoming blogs, we will try to analyze those factors that cause companies to fall in the green or in the red zone.

Disclaimer:

This blog is not intended to provide advice on investment-related matters of any sort.