ASSIGNMENT

ON
FUNDAMENTAL ANLAYSIS OF BHARTI AIRTEL

SUBJECT:- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

SUBMITTED TO
Dr. Hussain Yaganti

SUBMITTED BY
1. Devisetty Yeswanth 2008A7PS038H 2. G Sai Kaushik 2008A2PS300H

BITS PILANI HYDERABAD CAMPUS

FUNDAMENTAL ANALYSIS
Fundamental analysis is the examination of the underlying forces that affect the well being of the company, industry groups and companies. As with most analysis the goal is to develop a forecast of future price movement and profit from it. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level their might be an examination of supply and demand forces of the products. For the national economy fundamental analysis might focus on economic data to asses the present and future growth of the economy. Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economy, financial and other qualitative and quantitative factors. Three phase of the fundamental analysis are: A. Understanding of the Macro Economic environment and developments (Economy analysis) B. Analyzing the prospectus of the industry to which the firm belongs(Industry analysis) C. Assessing the projected performance of the company( Company analysis)

ECONOMIC ANALYSIS
The economy is like the tide and the various industry groups and individual companies are like boats. When economy expands most industry groups and companies benefits and grows, when the economy declines, most sectors and companies usually suffer. The stock market does not operate in a vacuum it is an integral part of the whole economy of a country, more so in a free economy like that of United States and to some extent in mixed economy like ours. To gain an insight into the complexities of stock market one needs to develop a sound economic understanding and be able to interpret the impact of important economic indicators on stock markets. Indias GDP Growth rate

India's economy grew 8.2% compared to the same period a year earlier between October and December, government data showed on March 1.

Quarterly GDP for Q3 of 2010-11 is estimated at Rs. 12,61,664 crores, as against Rs. 11,66,145 crores in Q3 of 2009-10, showing a growth rate of 8.2 per cent over the corresponding quarter of previous year.

The economic activities which registered significant growth in Q3 of 2010-11 over Q3 of 2009-10 are: agriculture, forestry & fishing at 8.9 per cent, construction at 8.0 percent, trade, hotels, transport and communication at 9.4 per cent, and financing, insurance, real estate and business services at 11.2 per cent.

In communication sector, the total stock of telephone connections (including WLL and cellular) registered growth rate of 40.0 per cent, respectively in Q3 of 2010-11 over Q3 of 2009-10.

Interpretation: As we saw that GDP growth rate of Indias shows increasing trend. Even though there are some ups and downs it is constantly maintaining an increasing trend. When it comes to the communications sector it has registered high growth rates. We can safely assume that the Indian economy is strong and will not be going into a depression anytime soon. Indias Inflation Rate: The inflation rate in India was last reported at 8.82 percent in February of 2011. From 1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power.

Interpretation: As the below graph shows that inflation rate is rising year by year. Inflation in economy is not good from investors point of view. When inflation rate rises it becomes the reason of extra costs to business, thereby squeezing their profit margin and leading to real decline in profitability and thereby reducing the dividends on variable income securities. The inflation peaked in the last quarter of FY ending 2009 and has decreased slightly after that due to the steps taken by RBI for tightening the monetary policy. Analysts believe that inflation is likely to remain firm in the medium-term mainly due to last year's lower base effect and other driving factors like high food price inflation, recovery in the global economy and ample liquidity.

Impact on equity market: The rise in the inflation rate impacts the market sentiments. Higher inflation and monetary policy tightening measures will fuel negative sentiments in the markets as a higher interest rate regime will result in higher cost of borrowing funds for the companies. This would have an immediate impact on the valuations of capital intensive companies and sectors in the stock markets. On the other hand, it will be more difficult for the government to implement some of the reforms measures such as reducing the subsidy on fuel products. This will mean a higher fiscal deficit and therefore add to the negative market sentiments.

Indias Interest Rate

The benchmark interest rate (reverse repo) in India was last reported at 5.75 percent. In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. From 2000 until 2010, India's average

interest rate was 5.82 percent reaching an historical high of 14.50 percent in August of 2000 and a record low of 3.25 percent in April of 2009.

Interpretation: Data here shows that the interest rates are rising again with the strengthening economy after the drop in the year 2009. The interest started rising after the raise in the key interest rates by RBI to curtail rising inflation rate. As a consequence it will be more expensive to raise money from banks. It causes slowing down of growth due to decreased financing. Indias Current Account

Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). The balance of trade is typically the most important part of the current account. This means that changes in the patterns of trade are key drivers in the current accounts of most of the world's economies. However, for the few countries with substantial overseas assets or liabilities, net factor payments may be significant. Positive net sales to abroad generally contribute to a

current account surplus; negative net sales to abroad generally contribute to a current account deficit. Because exports generate positive net sales, and because the trade balance is typically the largest component of the current account, a current account surplus is usually associated with positive net exports. The net factor income or income account, a sub-account of the current account, is usually presented under the headings income payments as outflows, and income receipts as inflows. Income refers not only to the money received from investments made abroad (note: investments are recorded in the capital account but income from investments is recorded in the current account) but also to the money sent by individuals working abroad, known as remittances, to their families back home. If the income account is negative, the country is paying more than it is taking in interest, dividends, etc. For example, the United States' net income has been declining exponentially since it has allowed the dollar's price relative to other currencies to be determined by the market to a point where income payments and receipts are roughly equal of trade forms part of the current account, which also includes other transactions such as income from the international investment position as well as international aid. If the current account is in surplus, the country's net international asset position increases correspondingly. India reported a current account deficit equivalent to 13.0 Billion USD in March of 2010. India is leading exporter of gems and jewelry, textiles, engineering goods, chemicals, leather manufactures and services. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Other imported products are: machinery, gems, fertilizers and chemicals. Main trading partners are European Union, the United States, China and UAE.

Interpretation: Indias current account shows negative current account. Means import is greater than export. Investor doesnt take it positively. As compare to previous year negative balance payment has increased.

India Consumer Confidence

In India, consumer confidence rose to 73 in the second half of 2010 from 68.2 in the first half of 2010. In India, the twice annual Master Index of Consumer Confidence analyzes prevailing consumer perceptions of economic conditions for the next six-months. Generally consumer confidence is high when the unemployment rate is low and GDP growth is high. Measures of average consumer confidence can be useful indicators of how much consumers are likely to spend.

According to Wikipedia, consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy. In essence, if consumer

confidence is higher, consumers are making more purchases, boosting the economic expansion. On the other hand, if confidence is lower, consumers tend to save more than they spend, prompting the contraction of the economy. A month-to-month diminishing trend in consumer confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs.

Interpretation: Consumer confidence is showing an increasing trend recovering from the recession. This is a positive prospect for investors.

INDUSTRY ANALYSIS
The purpose of industry analysis is to review prevailing conditions within specific industry and its segments. The company's industry obviously influences the outlook for the company. Even the best stocks can post mediocre returns if they are in an industry that is struggling.

To assess the industry group potential, an investor would want to consider the overall growth rate, market size, and its importance to economy. While the individual company is still important, its industry group is likely to exert as much as, or more, influence on the stock price. When stock move the usually move as groups; there are very few lone guns out there. An understanding of the industry sector involved, including the maturity of the sector and any cyclical effects that the overall economies have on it, is also necessary.

INDIAN TELECOM INDUSTRY In todays information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionizing human communication.

According to the TRAI, the total gross revenue of the Indian telecom services industry was Rs 1,524 bn in FY09 up from Rs 1,291 bn in FY08 registering a growth of 18.03% over FY08 and its subscriber base grew by 43% over FY08 to touch 429.70 mn subscribers in FY09.

The telecom sector in India experienced a rapid growth over the past decade on account of regulatory libralisation, structural reforms and competition, making telecom one of the major catalysts in Indias growth story. However, much of this growth can be attributed to the unprecedented growth in mobile telephony as the number of mobile subscribers grew at an astounding rate from 10 million in 2002 to 392 million in 2009. Besides, the growth in the service and IT sector also increased the prominence of the telecom industry in India. Telecom has emerged as a key infrastructure for economic and consumer growth because of its multiplier effect and the fact that it is beneficial to trade in other industries. The contribution of the sector to GDP has been increasing gradually (its contribution in GDP has more than doubled to 2.83% in FY07 from 1.0% in FY92).

The Indian telecom industry is characterised with intense competition, and continuous price wars. Currently, there are around a dozen telecom service providers who operate in the wired and wireless segment. The government has been periodically implementing suitable fiscal and promotional policies to boost domestic demand and to create volumes for the industry.

The Indian telecom industry has immense growth potential as the teledensity in the country is just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless segment growth has played a dominant role in taking the teledensity to the current levels. In the next few years, the industry is poised to grow further, in fact, it has already entered a consolidation phase as foreign players are struggling to acquire a pie in this dynamic industry.

The share of the telecom services industry in the total GDP has been rising over the past few years (the telecom sector contribution in GDP went up from 2.52% in FY05 to 2.83% in FY07).

2011-12 Budget Impact on the Telecom Sector:

The telecom sector expected significant tax reforms from the Government in the Budget 2011 to support its massive investment which is being made for the roll out of 3G services and BWA roll out.

However, not much seems to have been addressed in this Budget. Certain key areas like clarity on deduction of upfront 3G spectrum fees, re-introduction of tax holiday to new operators, resolving controversy around tax withholding on payments for interconnectivity charges, use of passive infrastructure, clarity on taxability of inbound roaming, availability of CENVAT credit on assets like towers, shelters etc, and waiver of NCCD etc are the other major demands from the telecom sector.

But the Budget proposals paint a negative picture for the telecom sector. The Finance Minister indicated that the government is expecting to raise money through recurring license fees and other usage charges from the telecom sector. These license fees will put additional financial burden on the larger telecom service providers. The industry demanded an exemption of service tax on broadband which was not considered. This move would have significantly increased the penetration of household broadband connections that would help boost revenues for broadband service provider companies

According to the general budget for 2011-12, the government proposed to raise Rs 29,648.33 crore through recurring licence fees, and other usage charges from the telecom sector. The usage charges includes licence fees from the telecom operators, receipts on account of spectrum usage charges, auction of third generation (3G), and Broadband Wireless Access (BWA) spectrum

The budget targets rural broadband connectivity in 2 years to all 2.5 lakh panchayats

Budget Proposals

1. Full exemption from basic customs duty and CVD to components for manufacture of battery chargers. Components of Hands-free headphones of mobile handsets including cellular phones are also fully exempt from customs duty and CVD. The validity of the exemption from special additional duty on mobile phones is being extended till March 31, 2011.This will make the mobile phones cheaper.

2. The Minimum Alternate Tax (MAT) has been increased from 18% to 18.55. This will adversely affect the telecom companies.

3. The reduction in the surcharge on corporate tax from 7.5% to 5%

By and large the industry has been disappointed with the budget

Foreign Direct Investment (FDI)

Foreign direct investment has been one of the major contributors in the growth of the Indian economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy. The telecom sector has played a crucial role in attracting FDI in India. The share of telecom sector in the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3% in FY05.

The telecom sector requires huge investments for its expansion as it is capital-intensive and FDI plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom

accounts for almost 10% of the total FDI inflows in the country and has been the third-largest sector to attract FDI in India in the post-liberalisation era.

The Indian telecom industry has been an attractive avenue for foreign investors over the years. As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009 period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector.

In the 2004-05 Budget, the government raised the FDI limit from 49% to 74% in the telecom services segment subject to retention of local management control. According to the new norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category I infrastructure providers, ISPs without gateway, call centres and IT-enabled services. Further, direct or indirect FDI up to 74% is permitted subject to licensing and security requirements for ISPs with gateways, radio paging operators and category II infrastructure providers.

The relaxation in FDI norms has attracted many foreign telecom majors to the sector. The presence of foreign players has not only encouraged faster infrastructure development and

upgradation but also has opened up the domestic industry to foreign competition. Since 2004, there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a period during which the FDI norms were relaxed, the FDI inflow grew by an astounding 300% to US$ 624 mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of FDI has provided tremendous impetus to the sector in the past few years and the attractiveness of the sector has kept the FDI inflows growing steadily. During FY09 the FDI in the telecom sector at US$ 2,558 mn was 103% higher than that seen in FY08 at US$ 1,261 mn. Further, the FDI in the sector has already reached US$ 2010 mn for a six month period of FY10 (Apr-Sep 09) and is expected to surpass the total FDI for FY09. The governments liberalised FDI policies have resulted in several foreign companies entering into the Indian markets. The influx of foreign players in the Indian telecom industry has led to capacity creation, and better infrastructure, which in turn has bettered the network quality. The rise in FDI has also enabled technology transfer, market access and has improved organisational skills; going forward, FDI could be used for providing telecom services to rural areas, where teledensity is still very low.

The change in FDI policy that has raised the FDI limit from 49% to 74% for the sector has made it more attractive for foreign players. In the long run the growth prospects of telecom players that have foreign partners will improve and other players will get new avenues to raise capital.

Factors Facilitating Growth of the Sector

The phenomenal growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Besides this, the following factors also aided the growth of the industry.

Libralisation: The relaxation of telecom regulations has played a major role in the development of the Indian telecom industry. The liberalisation policies of 1991 and the consequent influx of private players have led the industry on a high growth trajectory and have increased the level of

competition. Post-liberalisation, the telecom industry has received more investments and has implemented higher technology.

Increasing Affordability of Handsets: The phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Further, the manufacturers introduced lower-priced handsets with add-on facilities to cater to the increasing number of subscribers from different strata of the society. Now even entry-level handsets come with features like coloured display and FM radio. Thus, the falling handset prices and the add-on features have triggered growth of the Indian telecom industry.

Prepaid Cards Bring in More Subscribers: In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a phenomenon among first-time users who wanted to control their bills and students who had limited resources but greater need to be connected. Pre-paid cards greatly helped the cellular market to grow rapidly and cater to the untapped market. Further, the introduction of innovative schemes like recharge coupons of smaller denominations and life time incoming free cards has led to an exponential growth in the subscriber base.

Introduction of Calling Party Pays (CPP): The CPP regime was introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixedline networks. Shifting to the CPP system has greatly fuelled the subscriber growth in the sector.

Changing Demographic Profile: The changing demographic profile of India has also played an important role in subscriber growth. The changed profile is characterised by a large young population, a burgeoning middle class with growing disposable income, urbanisation, increasing

literacy levels and higher adaptability to technology. These new features have multiplied the need to be connected always and to own a wireless phone and therefore, in present times mobiles are perceived as a utility rather than a luxury.

Increased Competition & Declining Tariffs: Liberalisation of the telecom industry has fuelled intense competition, especially in the cellular segment. The ever-increasing competition has led to high growth of subscribers and has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased competition and the subsequent tariff war has acted as a major catalyst for attracting more subscribers. Apart from these major growth drivers, an improved network coverage, entry of CDMA players, growth of value-added services (VAS), advancement in technology, and growing data services have also driven the growth of the industry.

Outlook The telecom industry in India has experienced exponential growth over the past few years and has been an important contributor to economic growth; however, the cut-throat competition and intense tariff wars have had a negative impact on the revenue of players. Despite the challenges, the Indian telecom industry will thrive because of the immense potential in terms of new users. India is one of the most-attractive telecom markets because it is still one of the lowest penetrated markets. The government is keen on developing rural telecom infrastructure and is also set to roll out next generation or 3G services in the country. Operators are on an expansion mode and are investing heavily on telecom infrastructure. Foreign telecom companies are acquiring considerable stakes in Indian companies. Burgeoning middle class and increasing spending power, the governments thrust on increasing rural telecom coverage, favourable investment climate and positive reforms will ensure that Indias high potential is indeed realised.

COMPANY ANALYSIS
The purpose of company analysis to analyze the financial and non-financial aspects of a company to determine whether to buy, sells, or holds onto the shares of a particular company

After determining the economic and industry conditions, the company itself is analyzed to determine its financial health. This is usually done by studying the company's financial statements. From these statements a number of useful ratios can be calculated. The ratios fall under five main categories: profitability, price, liquidity, leverage, and efficiency. When performing ratio analysis on a company, the ratios should be compared to other companies within the same or similar industry to get a feel for what is considered "normal." These are quantitative factors of company analysis; there are also some qualitative factors which should be considered also.

Company Analysis of Bharti Airtel

Bharti Airtel (BSE: 532454), formerly known as Bharti Tele-Ventures LTD (BTVL) is India's largest cellular service provider with more than 130 million subscribers as of March 2010.

Bharti Airtel with over 24% market share is a leader in the Indian telecom space. On average, the company has been adding more than 2 million subscribers every month. Despite the competition led pricing pressures, Bharti has been able to sustain its operating margins at 41-42% on the back of strong growth in minutes of usage. Bharti is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and Internet access over DSL in 14 circles.

It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's), Mobile Services, Airtel Telemedia Services & Enterprise Services.

The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while The Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel digital TV. Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.

Performance of Airtel at a Glance

Strong Balance Sheet

Bharti Airtel is the largest wireless operator in India, with the widest coverage and a subscriber base of more than 130m. The company has a strong balance sheet among Indian wireless operators and has turned FCF positive in 2QFY09. Its net debt to equity of 0.08 and interest coverage of 26x positions it in a strong position to survive and thrive in the current environment.

Cash flow strength

Bharti has shown a strong growth in EBITDA and should be able to finance most of its capex plan through internal accruals. The company has no working capital requirement as it is financed through prepaid customers balances and vendor financing. Bharti is a pan India operator and is expected that its capex intensity will decline. Bharti has not tapped the capital markets since its IPO in 2002 and it is not expected it to raise any debt or equity funding for its existing operations. It might need to raise some short-term debt for launching 3G services which it can repay, considering its strong cash flow and negligible debt level.

Financial ratios

A financial ratio is an expression of the relationship between two selected items from the income statement or the balance sheet. Ratio analysis helps you to evaluate the weak and strong points in the financial and managerial performance. Financial ratio analysis is calculation and comparison of ratio which are derived from the information in a companys financial statements. The level and historical trends of these ratios can be used to make inferences about a co mpanys financial condition its operations and attractiveness as an investment.

1. Balance sheet ratio analysis

Interpretation: Bharti Airtels both current and quick ratios are moving upward means shows increasing trends. These shows company has good liquidity position. Company is able to pay day to day obligations of company.

2. Income statement ratio analysis

Interpretation: High income ratio shows company is at good profitability condition. As we see that net profit ratio in 2009 decline. But this is minor decline. This is due to high inflation rate and global meltdown. But company did not get affected very much.

3. Management or Efficiency Ratios

Interpretation: High inventory turnover ratio and high debtor turnover ratios shows the managements efficiency in using inventory and collecting debts respectively. Bharti Airtels both ratios are high in 2009 as compared to previous years. Company is efficient in using inventory properly and company able to collecting cash from debtors on time. In this way it shows good prospectus for investors to invest in this company in future.

4. Overall profitability analysis

Interpretation: High return on asset ratio shows that companys overall profitability is goods. Bharti Airtels this ratio is high in 2010 as compared to previous years. So its overall profitability is good whether its return on investment ratio has reduced by .03 point. It may be due to inflation and global meltdown reason.

5. Market test or valuation ratios

Interpretation: High earning per share is considered good from investors point of view. Bharti Airtels this ratio is increasing year by year but as fallen for the year ending March 2010. It shows that investors has good prospectus in Bharti Airtel if they will purchase is share.

TECHNICAL ANALYSIS
Technical analysis is a security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Technicians say that a market's price reflects all relevant information, so their analysis looks at the history of a security's trading pattern rather than external drivers such as economic, fundamental and news events. Price action also tends to repeat itself because investors collectively tend toward patterned behavior hence technicians' focus on identifiable trends and conditions.

Technical analysts seek to identify price patterns and trends in financial markets and attempt to exploit those patterns. While technicians use various methods and tools, the study of price charts is primary. Technicians especially search for archetypal patterns, such as the well-known head and shoulders or double top reversal patterns, study indicators such as moving averages, and look for forms such as lines of support, resistance, channels, and more obscure formations such as flags, pennants, balance days and cup and handle patterns. Technical analysis is frequently contrasted with fundamental analysis, the study of economic factors that influence prices in financial markets. Technical analysis holds that prices already reflect all such influences before investors are aware of them, hence the study of price action alone. Some traders use technical or fundamental analysis exclusively, while others use both types to make trading decisions.

In the following section Technical analysis method is used to analyze the movement in the stock price of Bharti Airtel in the period of January 2010 Present (9th September,2010)

1. Line Chart

The below chart above shows that the price of the Bharti Airtel shares has varied between the support and resistance line drawn at Rs 261.55 and Rs 328.65 respectively. When the security is tested several times between support and resistance line without being broken, then the trader can decide to lock profits as the security moves towards the support point as it is unlikely that it will move past this level.

2. Candlestick Chart

The above chart again can be used to find the support and resistance line which is at the price point of Rs 261.55 and Rs 328.65 respectively. The chart also shows the volume traded each day. Any price movement with high volume of trade is seen as more stringer and relevant move than a similar move with weak volume. This statement can be proved by the graph above. Notice the volume on the date marked 12/5/2010. There is a 8.3% drop in the price which is followed by high volume of share trade. The new reduced price of security so achieved is maintained for a considerable period of time with few ups and consequent drops until 9/7/2010 where again the increase in the price is accompanied with huge volumes.

Conclusion
On the basis of this assignments data we can say that there will be benefit to investors to invest their money in telecom industry because telecom industry is growing industry. And Indian government is also providing various facilities in the development of telecom industry. In India BHARTI AIRTEL is growing company. On the basis of its various ratios like Current ratio, Quick ratio, Net profit margin ratio, Inventory turnover ratios, Account receivable ratio, Return on assets ratio, Return on investment ratio, Earning per share we can say that company has good profitability condition, good liquidity position, good market condition because earning per share is increasing every year. However based on the intrinsic value it would be preferable for investors to sell the share as intrinsic value is less than the current market price. But based on the Technical analysis it can be seen that the price of the share is set to rise further and new support and resistance line will be discovered in few weeks. Therefore investors can hold the share for a while keeping an eye on the share price movement of Bharti Airtel as well as on the other telecom companies and sell the share when the price reaches the new resistance line