To study the indicators of intrinsic value of share with its market value for selected banking stocks in NIFTY BANK index – with special reference to retail investors

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Published: Feb 1, 2025
DOI: https://doi.org/10.29070/xv5aa580
Keywords:
Stock investment behaviour, retail investors, intrinsic value, market value, Nifty bank

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Authors

Ruchi Sharma

Research Scholar, The ICFAI University, Jaipur, Rajasthan

Dr. Shiv Kumar

Associate Professor, The ICFAI University, Jaipur, Rajasthan

Abstract

Present paper studied the relationship in the retail investors stock investment into banking shares and the intrinsic value of share. The paper aims at understanding whether the retail stock investor invests as per basic valuation methods of share. The literature review highlighted that retail investors follow investment choices as per herding, heuristics, over-confidence and other biased methods. Paper further tried to understand relationship between the intrinsic value of the share and the market pricing of the share. Various methods to calculate intrinsic value are used to derive the valuation of the stocks. The statistical tools of correlation and multiple regression are used to identify valid relationship in predictor and dependent variables. The study could identify that intrinsic value isa useful value to compare the over / undervalued shares in the stock market. Also, it established that the retail investors are completely following the concept of intrinsic value for stock valuation. Study involved the banking shares as it is observed that banking share represent one of the major components of Indian stock market.

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Article Details

Issue

Vol. 20 No. 1 (2025): International Journal of Information Technology and Management (IJITM)

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