Sustainable Investment Using Forecasting Towards Investment Decisions in the Indian Stock Market

The capital market is highly volatile and unpredictable therefore it is important to check on the fundamentals of the company. For an investor it is always better to analyse the price to earnings of the company with that of the sector price to earnings ratio, this analysis helps to understand the overvaluation and undervaluation of various companies. This research article focuses on analysing the stock movement of the 5 performing companies in the Bombay Stock Exchange, through this study the reader can understand the forecasting techniques using the ARIMA model and make decisions towards investment decisions in the stock market. Using the historical prices of the stock of different companies for 10 years, which was analysed to understand the volatility of the stock and predict the future stock prices of select companies. It is understood from the forecasting techniques such as using the ARIMA model, the predicted value has an increasing trend, therefore it is a confirmation that investors investing in these companies can expect a higher rate of returns however all the external factors such as macroeconomic factors remain constant. This study has found relevance for investors who blindly invest based on herd behaviour and other investment traits, however, this study can help various investors to check on the techniques and other indicators before investing in the capital market. The study has considered the present data and based on deductive analysis considered the most prominent valuation techniques trailing twelve-month PE ratio for the year 2023 and hence it has made this study novel.