22-11-2012, 12:12 PM
Fundamental Analysis of ICICI Bank Ltd
ABSTRACT
Fundamental analysis holds that no investment decision should be without processing and analyzing all relevant information. It strength lies in the fact the information analyzed is real as opposed to hunches or assumptions. On the other hand, while fundamental analysis deals with tangible fact, it does not tend to ignore the fact that human beings do not always act rationally. Market prices do sometimes deviate from fundamentals. Prices rise or fall due to insider trading, speculation, rumor, and a host of other factors. This is true to an extent but strength of fundamental analysis is that an investment decision is arrived at after analyzing information and making logical assumptions and deductions. Furthermore, fundamental analysis ensures that one does not recklessly buy or sell shares- especially buy.