Monday, July 23, 2007

SWOT analysis of Indian Share market

Strengths: Senex and Nifty scrips are top made up of top performing scrips that should capture much of India's growth ove the next 10 years. Companies that stand to gain the most as Indian economy gallops at 8-9% pa.

Weakness: Illiquidity outside the scrips in futures and options may lead to large scale price manipulation in illiquid scrips and lower price realisations in such counters.
Poor Indian Accounting disclosures may lead to large scale manipulation of figures by publicly traded companies.

Opportunites: A large domestic market that is still into traditional fixed income and other government savings is all buy bound to enter the market sooner if not later.

Threats: Global Economic slowdown, Currency mismangement, High global commoditiy prices, Over valuation in Index scrips, Non liquidity in non derravatives related scrips, Change in governement focus on controlling inflation, the attitude of government relating to FII's taxation etc

Brief about SWOT Analys

A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.


When using SWOT analysis, be realistic about the strengths and weaknesses of your organization. Distinguish between where your organization is today, and where it could be in the future. Also remember to be specific by avoiding gray areas and always analyze in relation to the competition (i.e. are you better or worse than competition?). Finally, keep your SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective. Thus, use it as a guide and not a prescription.

5 comments:

Anonymous said...

Its a good knowledgeable text for the swot analysts and concerns over the stock market swot and this also in today's fluctuating time is a realistic thing...........

Anonymous said...

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Profit said...

I am so happy to read this. This is the kind of manual that needs to be given and not the random misinformation that's at the other blogs. Thanks for sharing this

Honor Fx said...

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Vrusha said...

Thank you for shared a Good information about the SWOT Analysis.. I am looking for a Share Market Tips in Marathi for my daily share market trading practices ...

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