To day the avenues for investment are abundant like bank deposits, property insurance,shares etc. but taking an investment decision would be more critical. Analysis the risk associatedwith every investment option and evaluate the return out of that investment become very crucial.since the globalization and the privatization move of the Indian economy during the last decadesof the 20 th century pumped billions of foreign capital into the Indian economy as in the form of FDI and FII that could be one reason to drive the Indian economy into newer heights .Indianstock market also part of this unparallel growth. The confidence of primary and secondarymarket investors also increased several fold, these changing scenario encourage people to investmore in shares and bond who earlier park their saving as fixed deposits and other type of investment like property ,gold etc,The topic ‘risk and return analyses relevant in this circumstance .i have beenselected five sectors which have an important role in propelling Indian growth engine. Thesectors are banking, pharmaceutical, automobile, information technology, automobile and oil andgas sector. These entire five sectors have a different perspective in terms of profit making,growth, employment generation etc. the companies come under study are HDFC Bank, ICICI bank, SBI, Dr.reddy’s lab, Ranbaxy, sun pharma, BPCL, ONGC, Reliance, Infosys ,TCS, Wipro,M&M, Tata motors, Maruti Udyog ltd etc.The stock price where taken from the S&P CNX Nifty .the stock price for themonth of January, February and march 2007 .for calculating beta and standard deviationmathematical formula being used .the beta and standard deviation helps to find out total risk andsystematic risk The main objectives are to calculating the beta and variance to help the investors to arrive at adecision of invest in the shares which offer maximum return with minimum risk and also to gainknowledge of the stock market .the findings and suggestion certainly would be help theinvestors.