SOURCES OF FINANCIAL

INFORMATION
 NEED FOR FINANCIAL INFORMATION
• Security analyis calls for collection of vast information elating
to industry company and market
• Availability of money and flow of information into the market
largely affect the demand and supply forces
• Besides there is a need to know the intrinsic value of shares. It
revolves around the market prices and affects sell and buy
decisions
• Thus the market analysis and estimate of intrinsic value
require collection of information from appropriate sources
 SOURCES
• World affairs
International factor such as international political
Developments, wars, foreign markets etc. Influence domestic markets output
employment. Financial journals like economic times financial express,
Businessline, reports on world economic affairs. Apart Indian journals like
business India, Fortune India etc. Give day to day development that took
place abroad relating to trade and commerce. IMF news survey, world bank
and IMF quarterly journals, newsletter of foreign banks like Grindlays
Standard Chartered etc. Report on world development
Some links
http://247wallst.com/
http://www.aeconf.net/
https://data.imf.org/?sk=B83F71E8-61E3-4CF1-8CF3-6D7FE04D0930
https://data.worldbank.org/
https://www.forbes.com/investing/
 Domestic Economic and Political factors

• Domestic economic and political factors relate to gross domestic products (GDP),
agricultural output, monsoon, money supply, inflation, government
policies, taxation etc. Besides the leading newspapers, financial dailies like
economic times. Financial express, business line etc., Report regularly on national
economic policies and the domestic economy. Also, journals like economic and
political weekly, business India, business today, fortune india etc., Report on the
economic developments. The reports of the planning commission and annual
reports of various ministries, RBI annual bulletins, reports on currency and finance
provide information on economy, industry and trade sectors of our country.
• Some links:
• www.rbi.org
• https://www.bloombergquint.com/
• https://www.ft.com/week-ahead
• www.icai.org
 Industry information
• Industry information is quite essential for investment decision. It includes
market demand, installed capacity, capacity utilization competitor’s activities
and their share in the market, market leaders, prospects of the industry,
requirements of foreign buyers, inputs and capital goods in foreign
countries. import substitutes, industrial policy and labour policy of the
Government. etc.
• The monthly reports of various associations, Government publications, daily
financial papers, Directory of Information published by Bombay Stock
Exchange, reports of the Planning Commission, associations such as chamber
of commerce, Merchants’ Chamber etc., give a wealth of information on
• industry.
• Some links
• https://www.indianchamber.org/
• https://www.bseindia.com/
• https://niti.gov.in/planningcommission.gov.in/docs/
• https://www1.nseindia.com/
• https://www.imcnet.org/
 Company information
• Company information relates to the corporate data, annual reports, Stock Exchange
publications, Department of Company Affairs’ circulars, press releases on corporate
affairs by Government, industry, chamber etc. Financial papers, fortnightly journals
of , Dalai Street, Business India furnish information about the companies listed on
recognized stock exchanges. They also publish the results of equity and market
information. Weekly Reviews and monthly reviews of Bombay Stock Exchange
provide useful information required for security analysis.
• Sources of company information
a) Memorandum of association
b) Articles of association
c) Minutes of meeting
d) Annual reports
e) Company directories
f) Other company reports
Some links
http://www.mca.gov.in/
www.economictimes.com
www.crisil.com
 Security market information
• Investment management needs information about security market. The credit
rating companies, market trends, security market analysis, market reports,
equity research reports, trade and settlement data, listing and delisting records,
book closures, BETA factors etc., are called security market information.
• Financial papers like Economic Times, Business Line, Financial Express etc.,
report on trade cycles and settlements, record dates, book closures etc. Charted
Financial Analyst reports on economic data, company information, market
information, security analysis, beta factors etc., which help in security analysis.
Stock market journals like The Capital Market, Dalai Street, Business India,
Fortune India, Investment Week etc., carry information extensively on security
markets.
• some links
• https://www.marketresearch.com/
• https://www.market-research-companies.in/India
• https://in.reuters.com/
• https://www.livemint.com
• https://www.cnbctv18.com/market/stocks/
 Security Price quotations
• Generally, technical analysis is based on security price quotations. These
include price indices, price and volume data, breadth, daily volatility etc.
Each stock exchange publishes daily prices and also low and closing
quotations of securities traded in it. It also publishes volume of trade for
securities. Daily quotations are also reported by reputed dailies, RBI,
Bombay stock Exchange and OTCEI publish price indices for securities both
industry wise and region wise.
• Moreover, The Capital Market and DalaL Street journals contain information
on Price Earnings, Earning per share along with prices. The Bombay Stock
Exchange (B.S.E.) Directory deals with the pattern of shareholding,
distribution schedule, floating stock, past price data.
• SOME LINKS
• https://www.indiainfoline.com
• https://www.moneycontrol.com
• https://www.nse-india.com/
 Data on related markets
• Government securities market, money market and forex market are closely related
to security market. Publications of RBI, DFHI, Indian Banks Associations, Securities
Trading Corporation, Banks, NSE give data on such related markets. RBI
publications, Foreign Exchange Dealers Associations and foreign banks particularly
report on forex market.
• Financial dailies contain exchange rates and cross currency rates. The
developments of Govt. Securities market, money market and forex market are
reviewed by dailies, weeklies and fortnightly journals. Data on forex markets are
reported by London Economist, Far Eastern Economic Review and Wall Street
Journal.
• Some links
• https://www.forex.com/en/markets/forex/
• https://www.mcxindia.com/
• http://www.otcei.net/
• https://www.wsj.com/
 Data on Mutual Funds

• Various schemes of mutual funds and their performance, Net Asset Value
(NAV) and repurchase prices are useful in analyzing various investment
avenues available to modern investors.
• Daily financial papers, Investment Weekly and Investors’ Guide publish data
on mutual funds. They contain information on current mutual fund
schemes, NAV of each scheme, repurchase price, redemption rate of close-
ended funds, daily purchase and sale prices for open-ended funds. Most of
the schemes of mutual fund are quoted on the stock exchanges. In addition,
Capital Market, Dalal Street and Business India also give information on
mutual funds.
Some links
https://www.amfiindia.com/
https://www.mutualfundindia.com/
https://www.sebi.gov.in/
 New issue market
• New issue market is the primary market for securities. In this market,
companies issue securities to the investors directly for raising long-term
capital. Reports of the merchant bankers and SEBI have first hand
information on the various new issues floated in the market. They get
draft prospectus for vetting..
• Merchant brokers, underwriters and brokers in the new issue market
analyze the performance of the issuing companies. Cable operators,
financial journals, etc., give write ups on forthcoming issues. Reserve Bank
of India and Department of Company Affairs publish periodically data on
new issues in the primary market.
• Some links
• https://investorzone.in/
• https://www.sebi.gov.in/
• https://www.financialexpress.com/
 Financial information

• The Balance sheet analysis done by stock markets is based on the financial
data furnished by financial statements. The term ‘financial statements’ refers
to the balance sheet, or other statements of financial position of a company
and the income and expenditure statement or the profit and loss statement.
The audited statements, notes to accounts and cash flow statements give an
overall view of the financial position of the company. Thus, financial
statements contain a summary of the accounts of a company over a period
of one year i.e., one financial year (from 1st April to 31st March).
• The financial statements of a company help financial analysts to know the
financial soundness of the company and its management. Financial
statements help to study the fundamentals of the company and estimate the
intrinsic value of the shares. Besides the qualitative aspect like management
and utilisation of resources can also be got from the audited statements
References;
• Accountlearning.com