CONCLUSION AND RECOMMENDATIONS

7.1 Conclusion
The study that is been done reveals that there is hardly any correlation between the company
returns and the return of the BSE 30 index (sensex). This is so because there are 30
constituents and each of the company has little relation if considered individually, but have a
greater impact when taken jointly because the sensex is a weighted average of all the 30
companies.
The beta value of the firms showed the defensiveness of the company, because of low level of
correlation between the two returns and the moderate to high level of volatility in the scrip
prices. This reveals that the factor of systematic risk is very low. However the risk of price
fluctuations was not low.
The major companies that had positive returns were BHEL, Cipla, Dr. Reddy’s, Hero Honda,
HINDALCO, ITC, Infosys, Reliance Industries, SBI and Tata Motors.
The study also reveals that not all the companies yield a positive return, if taken for a very
long period say for ten years. Even the blue chip companies had a negative return. This
shows that investing in any company for a long period is not very safe.

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7.2 Recommendations of the Study

 The fundamentals of the stock exchanges are very important and necessary while
dealing with the stock exchange markets, therefore every individual should have
sound basics of the foreign market transactions.
 They can predict the future using different analysis for particular set of range, so it is
very important to track market and various other factors affecting the market
movements.
 There should be proper knowledge about the stock market especially regarding the
amount of foreign institutional investment in it.
 Investors are suggested to invest in the capital market before going through with
annual report.
 Investors are suggested to go for delivery and not with the intraday.
 Investors should invest through the surplus funds and not with borrowed funds.

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