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
DOI:
https://doi.org/10.29070/xv5aa580Keywords:
Stock investment behaviour, retail investors, intrinsic value, market value, Nifty bankAbstract
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.
Downloads
References
Balasudarsun, N. L., Sathish, M., Anifa, M., & Hema. (2020). A Systematic review on investors’ behavior in stock market. In https://forms.iimk.ac.in/research/markconf20/Proceedings/117.pdf [Author]. 04th International Conference on Marketing, Technology & Society 2020, indian institute of management kozhikode, India. https://www.iimk.ac.in/research/markconf20
Barber, B. M., & Odean, T. (2013). The behavior of individual investors. In Handbook of the economics of finance (pp. 1533–1570). https://doi.org/10.1016/b978-0-44-459406-8.00022-6
D Parambil, G., Joseph, A., & Joseph, V. (2018). a study on investment behaviour of professionals. jetir, 5(10). https://www.jetir.org/papers/JETIR1810193.pdf
Gutkevych, S., & Jureniene, V. (2020). bank’s investment activity. Baltic Journal of Economic Studies, 6(2), 108–115. https://doi.org/10.30525/2256-0742/2020-6-2-108-115
Jeyanthi, A., & Divya, D. (2019). risk and return analysis of selected banking stocks in india. Journal of Emerging Technologies and Innovative Research (JETIR), 6(6), 864–873. https://www.jetir.org/papers/JETIR1907B48.pdf
Jyoti, K. (2017). Analysis of Investment Behaviour with Reference to Retail Investors of Ranchi in Indian Stock Market. In Shodhganga. https://shodhganga.inflibnet.ac.in/jspui/handle/10603/175705
Lin, L. (2019). Bank deposits and the stock market. Review of Financial Studies, 33(6), 2622–2658. https://doi.org/10.1093/rfs/hhz078
Majumdar, V., Karanam, Supriya, Boddu, A., & Reddy, M. (2022). The theory of investment behaviour. International Journal for Multidisciplinary Research (IJFMR), 4(6). https://www.ijfmr.com/papers/2022/6/1296.pdf
Mistry, K. (2015). A Study of Individual Investors’ Behavior in Stock Market- With Special Reference to Indian Stock Market. International Journal of Management and Commerce Innovations, 3(1), 541–545. http://www.researchpublish.com/download.php?file=A%20Study%20of%20Individual%20Investors-2043.pdf&act=book
Okpoti Mensah, M., Kwasi Peprah, W., Owusu-Sekyere Adu, B., & Ayaa Mensah, M. (2022). Influence of Stocks Intrinsic Valuation on investment decision making: A Literature review. International Journal of Research in Business and Social Science, 12(5), 1268–1275. https://www.researchgate.net/publication/360671294_Influence_of_Stocks_Intrinsic_Valuation_on_Investment_Decision_Making_A_Literature_Review
Patjoshi, P. K. (2016). Comparative Risk Return Analysis of Bombay Stock Market with Selected Banking Stocks in India. IRA-International Journal of Management & Social Sciences (ISSN 2455-2267), 4(1). https://doi.org/10.21013/jmss.v4.n1.p18
Phan, T. N. T., Bertrand, P., Phan, H. H., & Vo, X. V. (2021). The role of investor behavior in emerging stock markets: Evidence from Vietnam. The Quarterly Review of Economics and Finance, 87, 367–376. https://doi.org/10.1016/j.qref.2021.07.001
Pradhan, K., & Kumar, V. (2022). An empirical analysis of impact of banking sector on Indian stock market. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/jeas-05-2022-0125
Putra, A. I. L. W., Putra, A. D., Dewi, M. S., & Radianto, D. O. (2019). Differences in intrinsic value with stock market prices using the Price earning Ratio (PER) approach as an investment decision making indicator (CASE study of manufacturing companies in Indonesia period 2016 - 2017). Aptisi Transactions on Technopreneurship (ATT), 1(1), 82–92. https://doi.org/10.34306/att.v1i1.61
Raut, R. K., Das, N., & Mishra, R. (2018). Behaviour of Individual Investors in Stock Market Trading: Evidence from India. Global Business Review, 21(3), 818–833. https://doi.org/10.1177/0972150918778915
RIYAZ, G. (2023). Banking -financial analysis & investment opportunities in indian banking industries. International Journal of Research and Analytical Reviews (IJRAR), 10(2), 86–116. https://ijrar.org/papers/IJRARTH00058.pdf
Siddeeq Kakkattuchali, A., Ayoob, C. P., Jasim Munavar, P., & Edathil, K. (2023). investor behaviour in financial markets: trends, insights, and regional perspectives. ShodhKosh Journal of Visual and Performing Arts, 5(5). https://doi.org/10.29121/shodhkosh.v5.i5.2024.3694
Tarigan, C. N., Fachrudin, & Fachrudin, K. A. (2021). Analysis of Intrinsic Value of Shares with Free Cash Flow to Firm Model and Relative Valuation for Coal Mining Issuers. International Journal of Research, 8(3), 302–308. https://www.ijrrjournal.com/IJRR_Vol.8_Issue.3_March2021/IJRR039.pdf
