Research Analyst book by National Institute of Securities Markets

Research Analyst is a comprehensive professional handbook on equity research and investment analysis, designed to present the research analyst function as it is actually performed in regulated capital markets. The book is structured as a complete research analyst's desk reference, integrating market structure, analytical methodologies, economic and industry assessment, company evaluation, valuation, risk analysis, research reporting standards, and regulatory obligations into a single, coherent framework. The publication captures the full analytical lifecycle of equity research—beginning with understanding securities markets and instruments, progressing through economy–industry–company analysis, and culminating in valuation, risk assessment, and the preparation of a compliant research report. Its editorial philosophy reflects the view that high-quality research is not the result of isolated techniques, but of disciplined analytical thinking, structured data interpretation, professional judgment, and ethical conduct, all of which are embedded throughout the book.

This book is intended for the following audience:

• Equity Research & Investment Professionals seeking a structured, practice-oriented reference
• Research Analysts & Associates involved in company coverage, valuation, or sectoral research
• Professionals in Brokerage, Advisory, PMS, & Institutional Research Functions
• Students & Early-Career Entrants aiming to build a strong conceptual and analytical foundation in equity research
• Compliance, Governance, & Supervisory Professionals requiring clarity on research analyst obligations and disclosure standards
• Academics & Trainers delivering applied courses on securities markets and investment research

The Present Publication is the November 2025 Workbook Version developed jointly by the Certification Team of NISM and subject matter experts, Mr Manish Bansal, Mr Ramesh Varakhedkar, Mr Vijay Kanchan and reviewed by Prof. Kameshwar Rao and Mr Prakash Gaba. It is published exclusively by Taxmann, with the following noteworthy features:

• [End-to-end Equity Research Framework] Presents the complete research process—from market understanding and macro analysis to valuation and research report preparation—within a single integrated volume
• [Balanced Analytical Methodologies] Combines fundamental analysis, technical analysis, quantitative research, behavioural finance, and commodity research, enabling multi-dimensional investment assessment
• [Strong Economic & Industry Foundations] Provides structured treatment of microeconomics, macroeconomics, economic cycles, industry structure, competitive dynamics, and sectoral drivers
• [Deep Company Analysis Coverage] Integrates qualitative assessment (business models, governance, ESG, management quality) with detailed financial statement analysis and forecasting techniques
• [Valuation & Corporate Action Focus] Explains valuation logic, pricing vs value, DCF and relative valuation approaches, and the impact of corporate actions on shareholder value
• [Research Report Writing Standards] Details the essential characteristics of a high-quality research report, supported by checklist-based guidance to ensure analytical clarity and objectivity
• [Embedded Governance & Compliance Perspective] Incorporates code of conduct principles, conflict-of-interest disclosures, investor protection norms, complaint reporting formats, and cybersecurity expectations
• [Practice-oriented Design] Uses illustrations, case discussions, historical examples, and applied explanations to reinforce analytical thinking rather than theoretical abstraction

The workbook offers exhaustive, syllabus-aligned coverage, organised to mirror the way professional research is conducted and evaluated:

• Research Analyst Profession & Ethics
• Role, responsibilities, and professional qualities of a research analyst
• Principles governing interaction with companies, management, and clients
• Ethical standards, objectivity, and independence in research
• Indian Securities Market Framework
• Securities and securities markets overview
• Market structure, participants, and transaction types
• Dematerialisation, settlement systems, and market infrastructure
• Equity, Debt & Commodity Market Terminology
• Core equity and debt market terminology
• Bond types and fixed-income instruments
• Commodity market terminology and inter-market linkages
• Fundamentals of Investment Research
• Investing principles and the role of research in decision-making
• Technical analysis foundations
• Fundamental analysis methodology
• Quantitative research techniques
• Behavioural approach to equity investing
• Commodity research fundamentals
• Case studies and historical market event analysis
• Economic Analysis
• Microeconomic and macroeconomic principles relevant to investment analysis
• Key macroeconomic variables and indicators
• Secular, cyclical, and seasonal economic trends
• Role of economic analysis in fundamental research
• Sources of economic and statistical data
• Industry Analysis
• Industry definition, structure, and lifecycle
• Identification of industry drivers and risks
• Competitive landscape and regulatory environment
• Market sizing, cyclicality, and value migration
• Industry-specific information sources
• Company Analysis – Qualitative Dimensions
• Business models and competitive advantages
• Pricing power and sustainability of earnings
• Management quality, corporate governance, and ESG considerations
• Business and financial risk assessment
• Company Analysis – Financial Analysis
• Financial statements and reporting framework
• Standalone vs consolidated analysis
• Balance sheet, profit & loss, cash flow analysis
• Ratio analysis, DuPont framework, peer comparison
• Forecasting and forward-looking financial assessment
• Corporate Actions
• Dividends, rights issues, bonus issues, splits and consolidation
• Mergers, demergers, acquisitions, restructuring
• Buybacks, delisting, and share swaps
• Valuation Principles
• Concept of value vs price
• Valuation objectives and sources of value
• Valuation approaches and methodologies
• Discounted cash flow and relative valuation
• Asset-based and sum-of-the-parts valuation
• Risk, Return & Commodities
• Measurement of return and risk
• Risk–return trade-offs and sensitivity analysis
• Behavioural biases and margin of safety
• Fundamentals of commodity markets and price drivers
• Research Report Writing
• Qualities of a good research report
• Analytical structure, objectivity, and presentation standards
• Checklist-based approach to compliant research output
• Legal & Regulatory Environment
• Code of conduct for research analysts
• Conflict-of-interest disclosures
• Exchange surveillance mechanisms (ASM/GSM)
• Investor Charter obligations
• Complaint disclosure requirements
• Cybersecurity and cyber resilience framework

The book follows a progressive, analyst-centric structure:

• Foundational Layer – Securities markets, instruments, and analyst responsibilities
• Analytical Layer – Research techniques, economic analysis, industry and company evaluation
• Decision Layer – Valuation, corporate actions, and risk assessment
• Output & Governance Layer – Research report writing, disclosures, investor protection, and compliance
• This structure mirrors how professional research is actually conducted—from information gathering to analytical judgment and final research output