ACKNOWLEDGEMENTS

First and foremost, I praise and thank God Almighty from the depth of my heart, which
has been the source of strength in the completion of this project work.
It is my profound concern to thank the principal, Fr. Josekutty P.D, M. COM, Kristu
Jayanti College who paved the path for offering me this opportunity and avenues of infinite
possibilities of knowledge.
I further express my deep sense of gratitude to Prof. A.M.Tatti MBA, coordinator of
MBA department, Kristu Jayanti College for his constant encouragement and valuable help.
I wish to extend my sincere and profound thanks to prof.Arun Kumar, MBA dean Kristu
Jayanti college for the help extend towards me during the period of dissertation work.
And I am deeply indebted to Prof. Aloysius Edward, Kristu Jayanti College, for his
guidance, assistance and for giving all the formal support to conduct this study and for
completing this project work.
I am also thankful to the librarian, Kristu Jayanti College for their encouragement and
valuable help.
I take this opportunity to acknowledge indebt ness to Mr. Liju Varghese Thomas,
Mathew Abraham, Jino Thomas and Tony Chacko for their earnest support and cooperation in the course of my study.
I am also thankful to my parents and friends for their encouragement and support
Finally I would like to express my sincere gratitude to all those who spend their valuable
time for providing necessary data for this organizational study.

Abhilash p.j

EXECUTIVE SUMMARY
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 associated
with 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 decades
of 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 .Indian
stock market also part of this unparallel growth. The confidence of primary and secondary
market investors also increased several fold, these changing scenario encourage people to invest
more 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 been
selected five sectors which have an important role in propelling Indian growth engine. The
sectors are banking, pharmaceutical, automobile, information technology, automobile and oil and
gas 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 the
month of January, February and march 2007 .for calculating beta and standard deviation
mathematical formula being used .the beta and standard deviation helps to find out total risk and
systematic risk
The main objectives are to calculating the beta and variance to help the investors to arrive at a
decision of invest in the shares which offer maximum return with minimum risk and also to gain
knowledge of the stock market .the findings and suggestion certainly would be help the
investors.

2

TABLE OF CONTENTS

CHAPTER

CONTENT

NO

PAGE
NO

1

INTRODUCTION

6-17

2

RESEARCH DESIGN

18-23

3

PROFILE OF THE INDUSTRIES

24-45

4

DATA ANALYSIS AND INTERPRETATION

46-105

FINDINGS,CONCLUSIONS AND
5

RECOMMENDATIONS

106-109

BIBLIOGRAPHY

110

3

NO
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.1
4.11
4.12
4.13
4.14
4.16
4.17
4.18
4.19
4.2
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.28
4.29
4.3
4.31
4.32
4.33
4.34
4.35
4.36
4.37
4.38
4.39
4.4
4.41
4.42
4.43
4.44
4.45

LIST OF TABLES

PAGE

TABLE SHOWING STOCK RETURN AND MARKET RETURN OF HDFC -JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF HDFC -FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF HDFC MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ICICI JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ICICI FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ICICI MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SBI JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SBI -FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SBI -MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF DR.REDDYS –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF DR.REDDYS –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF DR.REDDYS –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RANBAXY –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RANBAXY-FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RANBAXY -MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SUN PHARMA-JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SUN PHARMA-FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF SUN PHARMA-MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF BPCL -JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF BPCL -FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF BPCL-MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ONGC -JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ONGC –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF ONGC –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RELIANCE –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RELIANCE –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF RELIANCE –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF INFOSYS –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF INFOSYS –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF INFOSYS –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF TCS –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF TCS –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF TCS-MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF WIPRO –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF WIPRO –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF WIPRO –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF M&M –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF M&M –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF M&M –MARCH
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF MARUTI –JANUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF MARUTI –FEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF MARUTI –MARCH
TABLES SHOWING STOCK RETURN AND MARKET RETURN OF TATA MOTORS-JANUARY
TABLES SHOWING STOCK RETURN AND MARKET RETURN OF TATA MOTORSFEBRUARY
TABLE SHOWING STOCK RETURN AND MARKET RETURN OF TATAMOTORS-MARCH

4

56
57
58
60
61
62
64
65
66
68
70
71
72
73
75
76
77
79
80
81
82
84
86
87
90
91
92
94
95
96
98
99
100
102
103
104
106
107
108
110
111
112
113
114
115

NO
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.28
4.29
4.30
4.31
4.32
4.33
4.34
4.35
4.36
4.37
4.38
4.39
4.40
4.41
4.42
4.43
4.44
4.45

LIST OF GRAPH

PAGE NO

STOCK RETURN V/S MARKET RETURN OF HDFC –JANUARY
STOCK RETURN V/S MARKET RETURN OF HDFC –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF HDFC -MARCH
STOCK RETURN V/S MARKET RETURN OF ICICI –JANUARY
STOCK RETURN V/S MARKET RETURN OF ICICI –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF ICICI -MARCH
STOCK RETURN V/S MARKET RETURN OF SBI - JANUARY
STOCK RETURN V/S MARKET RETURN OF SBI -FEBRUARY
STOCK RETURN V/S MARKET RETURN OF SBI –MARCH
STOCK RETURN V/S MARKET RETURN OF DR.REDDYS –JANUARY
STOCK RETURN V/S MARKET RETURN OF DR.REDDYS –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF DR.REDDYS –MARCH
STOCK RETURN V/S MARKET RETURN OF RANBAXY –JANUARY
STOCK RETURN V/S MARKET RETURN OF RANBAXY-FEBRUARY
STOCK RETURN V/S MARKET RETURN OF RANBAXY –MARCH
STOCK RETURN V/S MARKET RETURN OF SUN PHARMA-JANUARY
STOCK RETURN V/S MARKET RETURN OF SUN PHARMA-FEBRUARY
STOCK RETURN V/S MARKET RETURN OF SUN PHARMA-MARCH
STOCK RETURN V/S MARKET RETURN OF BPCL –JANUARY
STOCK RETURN V/S MARKET RETURN OF BPCL –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF BPCL- MARCH
STOCK RETURN V/S MARKET RETURN OF ONGC –JANUARY
STOCK RETURN V/S MARKET RETURN OF ONGC –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF ONGC –MARCH
STOCK RETURN V/S MARKET RETURN OF RELIANCE –JANUARY
STOCK RETURN V/S MARKET RETURN OF RELIANCE –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF RELIANCE –MARCH
STOCK RETURN V/S MARKET RETURN OF INFOSYS –JANUARY
STOCK RETURN V/S MARKET RETURN OF INFOSYS –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF INFOSYS –MARCH
STOCK RETURN V/S MARKET RETURN OF TCS –JANUARY
STOCK RETURN V/S MARKET RETURN OF TCS –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF TCS-MARCH
STOCK RETURN V/S MARKET RETURN OF WIPRO –JANUARY
STOCK RETURN V/S MARKET RETURN OF WIPRO –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF WIPRO-MARCH
STOCK RETURN V/S MARKET RETURN OF M&M –JANUARY
STOCK RETURN V/S MARKET RETURN OF M&M –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF M&M –MARCH
STOCK RETURN V/S MARKET RETURN OF MARUTI –JANUARY
STOCK RETURN V/S MARKET RETURN OF MARUTI –FEBRUARY
STOCK RETURN V/S MARKET RETURN OF MARUTI –MARCH
STOCK RETURN V/S MARKET RETURN OF TATA MOTORS-JANUARY
STOCK RETURN V/S MARKET RETURN OF TATA MOTORS-FEBRUARY
STOCK RETURN V/S MARKET RETURN OF TATA MOTORS-MARCH

5

56
57
59
60
61
62
64
65
66
67
69
70
71
72
74
75
76
78
79
81
90
91
92
93
95
96
97
98
100
101
102
103
105
106
107
108
109
110
111
112
115
116
117
118
120

CHAPTER: I

INTRODUCTION TO THE RESERCH TOPIC

1.1 INTRODUCTION
Before 1990’s the main area of investment were bank deposits, gold, property and such
other forms of tangible assets but for the past few years we had been witnessing a lot of
investment opportunities coming up in the form of primary and secondary market since the
globalization which had its inception during 90’s foreign

capital flowing to India .new

multinational entered the market and a lot of investment opportunities were opened to the people
who kept their saving in bank and other kind of fixed assets .
The topic analysis of risk and return in the banking, pharmaceutical, IT, oil & gas and
automobile had been selected because a lot of investors are making investment in the shares of
different companies. The investors have to be aware of the risk involved in making the
investment .so the investors have to calculate the variance and the beta value to know the present
condition of the Company to know whether there is any risk in investing in the particular
company and does the company offer good returns.

The companies which I have been selected for research having different growth strategies
and difference in revenue, profitability and market capitalization.

Currently (2007), overall, banking in India is considered as fairly mature in terms of
supply, product range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian
banks are considered to have clean, strong and transparent balance sheets-as compared to other
banks in comparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government.
The Indian pharmaceutical is one of the fast growing sector not only in India but also the whole
world There are 74 U.S. FDA-approved manufacturing facilities in India, more than in any other
country outside the U.S, and in 2008, almost 25% of all Abbreviated New Drug Applications
(ANDA) to the FDA are expected to be filed by Indian companies. Growths in other fields
notwithstanding, generics are still a large part of the picture. London research company Global
6

Today. down from 70% thirty years ago. Indian oil and gas industry estimated to be a US$ 90 billion industry. more than a third of Fortune 500 companies outsourced their software requirements to India The Indian automotive industry has flourished like never before in the recent years.58 billion. mostly to the United States and Russia.7 billion (including over $4 billion worth of software exports) in 1999-2000. The Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5.000 registered drug manufacturers in India sold $15 billion worth of formulations and bulk drugs. are run by state-run companies. The share of North America (U. Most of the country's 19 refineries. The data collected is mainly secondary in nature and no questionnaire has been formulated for the research . 85% of these formulations were sold in India while over 60% of the bulk drugs were exported. India exports software and services to nearly 95 countries around the world. the Indian oil and gas industry is among the largest contributors to the central and state exchequers in India. This extra-ordinary growth that the Indian automotive industry has witnessed is a result of a two major factors namely.42 million tones in the previous year. In 1999-2000.97 million tones per year as of December 2006.the data(that is the stock price and S&P CNX Nifty index)has been 7 . multinationals represent only 35% of the market. No other Indian industry has performed so well against the global competition. over 20. with a capacity to process 148.1 per cent from 127. the improvement in the living standards of the middle class.S. Most of the players in the market are small-to-medium enterprises. barring two. Its share approximates US$ 13. During April-December 2006.11 million tones was up 2.42 million tones. refinery throughput at 130. & Canada) in India’s software exports is about 61 per cent. the throughput was 107. Thanks to the 1970 Patent Act. and an increase in their disposable incomes. Economic Survey 2006-07 says: During 2005-06.Insight estimates that India’s share of the global generics market will have risen from 4% to 35% in 2006. 250 of the largest companies control 70% of the Indian market.

2 SUBJECT BACKGROUND OF THE RESEARCH TOPIC A company .as its shares may be under prices and it has good prospects of growth hence an analysis of risk or return guides an investor in proper profitable investment .since the game of investing is about returns.2 RISK Risk refers to the possibility tat the actual outcome of an investment will differ from its expected outcome . 1.2. THE COMPONENT OF RETURN The return of an investment consist of two component Current return the component that often comes to mind when one is thinking about return is the periodic cash flow such as dividend or interest generated by the investment . 8 . measurement of realized return is necessary to assess how well the investment manager has done.it may have no growth prospects or it may be overpriced . 1. In addition historical return is often used as an important input on estimating future return.on the contrary .collected from various websites and has been analyzed and interpreted in order to find out the spread of return with the help of standard deviation and beta. Capital return the second component of return is reflected in the price change called the capital return .the wider the range of possible outcomes the greater the risk.it is simply the price appreciation (or depreciation) divided by the beginning price of the assets. most investors are concerned about the actual outcome being less than the expected outcome .a company which has been badly for sometime might have turn the corner and it may be the best to buy .is not necessarily the best stock to buy .similarly a company that performs well during any one year may not be the best to buy .more specifically. Thus total return =current return + capital return 1.current return is measured as the periodic income in relation to the beginning price of the investment.which has a high intrinsic worth .it represents the reward for undertaking investment .1 RETURN Return is the primary motivating force that drives investment .2.

Also referred to as volatility. market risk is the the day-to-day fluctuations in a stock's price. stocks tend to perform well during a bull market and poorly during a bear market volatility is not so much a cause but an effect of certain market forces. Market risk is caused by investors reaction to the tangible as well as intangible events .some influence are external to the organization can not be controlled other influence are internal to the organization that are controllable to a large extent . or "temperament". As a whole.investors are expressing their judgment that too much is being paid for earning in the light of anticipated events . social or economic. and the more unstable the investment the more chance there is that it will experience a dramatic change in either direction.the basis for the reaction is a set of real. Because market movement is the reason why people can make money from stocks. tangible.in an investment decision those factors which is uncontrollable is called systematic risk .expectation of lower corporate profile in general may cause the larger body of common stocks to fall in price .on the other hand those factors are controllable and internal to the organization are called unsystematic risk these are the two broad categories of risk . SYSTEMATIC RISK. of your investment rather than the reason for this behavior. volatility is essential for returns. Market risk applies mainly to stocks and options. MARKET RISK This is the most familiar of all risks.DIFFERENT TYPE OF RISK Forces that contribute to variance in return-price or dividend-constitute the element of risk . Volatility is a measure of risk because it refers to the behavior. events – political. 9 .

if the RBI increase or decrease the interest rate (repo rate ) the interest on government securities rise or fall . the currency loses its value due to the rising price level in the economy.rise or fall . There are two major types: translation risk and transaction risks.in other words as the cost of money changes for nearly risk free securities. This is because there are many interested buyers and sellers in the market.such as stocks and bonds issued in the private sector .INTEREST RATE RISK – Interest rate risk is the risk that an investment's value will change as a result of a change in interest rates.the rate of return demanded on alternative investment vehicle . The higher the inflation rate. LIQUIDITY RISK The uncertainty associated with the ability to sell an asset on short notice without loss of value. the root cause of interest rate risk lies in the fact that . 10 . TRANSLATION RISKS Uncertainty associated with the translation of foreign currency denominated accounting statements into the home currency. FOREIGN EXCHANGE RISKS Uncertainty that is associated with potential changes in the foreign exchange value of a currency. This risk is extensively discussed in Multinational Financial Management courses. A highly liquid asset can be sold for fair value on short notice. the faster the money loses its value. INFLATION RISK (PURCHASING POWER RISK) The loss of purchasing power due to the effects of inflation. This type of risk is important in some project investment decisions but is discussed extensively in Investment courses. the cost of money to more risk prone issues will also change. When inflation is present. An illiquid asset is hard to sell because there there few interested buyers. This risk affects the value of bonds more directly than stocks.

This risk is often discussed in General Business Management courses.called financial leverage .has at least three important effect on common stock holders .1)increase the variability of their return 2)effect their expectation concerning to the return 3)increase the risk of being ruined .internal business risk is largely associated with the efficiency with which a firm conduct its operation within the border operating environment imposed upon it . FINANCIAL RISK The uncertainty brought about by the choice of a firm’s financing methods and reflected in the variability of earnings before taxes (EBT).the reliance in debt financing . Since this earnings measure has not had financing expenses removed.TRANSACTIONS RISKS Uncertainty associated with the home currency values of transactions that may be affected by changes in foreign currency values. This risk is often discussed within the context of the Capital Structure topics. UNSYSTEMATIC RISK Unsystematic risk are those risk which is firm specific or peculiar to a firm or industry the different type of unsystematic risk are discussing below.each firm has it s on internal risk. specifically . BUSINESS RISK The uncertainty associated with a business firm's operating environment and reflected in the variability of earnings before interest and taxes (EBIT). it reflects the risk associated with business operations rather than methods of debt financing. By Engaging in debt financing the firm changes the characteristics of the earning stream available to the common stock holders. a measure of earnings that has been adjusted for and is influenced by the cost of debt financing. Business risk can be divided into two board categories: external and internal . 11 . This risk is extensively discussed in the Multinational Financial Management courses. and the degree to which it is successful in coping with them is reflected in operating efficiency.

Economic analysis and forecasting company performance and of returns is necessary for making investment.it involves the commitment of resources which have saved or put away from current consumption in the hope that some benefits will acure in future. The investor constantly evaluates the work of a security.an investment is a sacrifice of current money or other resources for future benefits . evaluate and allocate funds in various investments which offer safety of principal. It is based on availability of money and information on economy industry and company. Risk: investment is considered to involve limited risk and is confined to those avenues where the principle is safe. The three key aspects of any investment are time capital gain and risk the sacrifice takes place now and is certain .the benefits are expected in the future and tend to be uncertain. fund allocation is termed as investment. There has to be a constant review of securities to find out whether it is a suitable investment. What to buy and sell also depends on the fair value of shares and the extent of over valuation and under valuation.2. share prices are ruled by expectation of the market and the market sentiments. As we know these decisions are influenced by availability of money and flow of information. moderate and continuous return and long term commitment.it is the allocation of monetary resources to assets that are expected to yield gain or positive return over a given periods of time . No investments are completely risk free Capital gain: If purchase of securities is preceded by proper investigation and analysis and review to receive a stable return over a period of time it is termed as investment.3 INVESTMENT Investment is the employment of the fund with aim of achieving additional growth in value .4 INVESTMENT DECISION In stock market parlance investment decision refers to making a decision regarding the buy and sell orders. 1. although technical are also important 12 .1.2. For making such a decision the common investors have to depend more up on a study of fundamental rather than technical. The investment is an attempt to carefully plan. Time: A longer time. Any investment is risky and such investment decision is difficult to make. As we know economic analysis or factors play in any investment decision which is made for making a gain and better returns.

it therefore essentially consists of the companies issuing securities. Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Secondary market comprises of equity markets and the debt markets.2. public sector undertakings and companies for borrowing funds and raising resources. semi-government. when you buy a stock you will need to learn which exchanges list it other than locating quote in the news paper with online trading and the automation of order system .if these securities are marketable as in the case of government stocks. The NYSE annually traded almost 14 trillion dollars worth of capital . 1. enabling implementation of incentive-based management contracts. securities are defined as any monetary claims and includes stock . Secondary equity markets serve as a monitoring and control conduit—by facilitating value-enhancing control activities.these securities are issued by the government. 13 . he regulatory agencies like SEBI and the government.2.6 STOCK MARKET Stock market is place where the stocks or shares are purchased and sold . merchant bankers and bank who underwrite the issues and help in collecting subscription money from the public. and aggregating information (via price discovery) that guides management decisions. Majority of the trading is done in the secondary market.shares.5 PRIMARY AND SECONDARY CAPITAL MARKET Primary market is the market for issue of new securities .there is very little reason to determine where the stock trades from the customers viewpoint.they are tradable on the stock exchange .stock exchange is an organized market where securities are traded . Exchanges are located all over the world with the most famous one being the New York stock exchange.1. they are transferable by endorsement and are like moveable property . debentures . For the general investor.thousands of stocks are listed on this exchange.bonds etc . he public subscribing to these securities. For the management of the company. the secondary market provides an efficient platform for trading of his securities.

the first being the Bombay Stock Exchange (BSE). The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The systems and processes of the Exchange are designed to safeguard market integrity and 14 . 1956. Over the last few years. Earlier an Association of Persons (AOP). Advanced technology and online-based transactions have modernized the stock exchanges. 1956. the Board formulates larger policy issues and exercises over-all control. there has been a rapid change in the Indian securities market.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act. The number of listed companies increased from 5. The Exchange is professionally managed under the overall direction of the Board of Directors. In terms of the number of companies listed and total market capitalization. The debt market. making it one of the oldest in Asia. which began formal trading in 1875. 2005 notified by the Securities and Exchange Board of India (SEBI). is almost nonexistent 1. however. the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. is tracked worldwide. pursuant to the BSE (Corporatisation and Demutualization) Scheme.2.There are 22 stock exchanges in India. representatives of Trading Members and the Managing Director of the Exchange. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. especially in the secondary market. it was established as "The Native Share & Stock Brokers Association" in 1875. The committees constituted by the Board are broad-based. the Exchange is now a demutualised and corporatised entity incorporated under the provisions of the Companies Act. In terms of organization structure. SENSEX. the Indian equity market is considered large relative to the country’s stage of economic development.968 in March 1990 to about 20. Popularly known as "BSE". The Board is inclusive and is designed to benefit from the participation of market intermediaries.With demutualization. The Board comprises eminent professionals.7 BOMBAY STOCK EXCHANGE LIMITED (BSE) Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.000 by May 2006 and market capitalization has grown almost 11 times during the same period.

NSE is mutually-owned by a set of leading financial institutions. 1956 in April 1993. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000 It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. the NSE had a total market capitalization of 4. 15 . In March 2006. 2799 in total.380. As of 2006. insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. Based on the recommendations. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. debt instruments and derivatives.enhance transparency in operations. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. During the year 2004-2005.2.8 THE NATIONAL STOCK EXCHANGE OF INDIA LIMITED (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. banks. the NSE VSAT terminals. cover more than 1500 cities across India. 1. The Exchange provides an efficient and transparent market for trading in equity.774 crore INR making it the second-largest stock market in South Asia in terms of market-capitalization. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. the trading volumes on the Exchange showed robust growth.

PENNY STOCKS Penny stocks are low priced speculative stock. BLUE CHIP STOCKS the term ‘blue chip’ comes from poker. who are world leaders in index services. (IISL).well known blue chip companies includes IBM.92% of the total market capitalization as on April 10. It is used for a variety of purposes such as benchmarking fund portfolios. products and service are referred to as blue chip companies.10 TYPES OF STOCKS 1. IISL have a consulting and licensing agreement with Standard & Poor's (S&P). dividend payout and a reputation for quality management.large established firms with a long record of profit growth. The average total traded value for the last six months of all Nifty stocks is approximately 45. established companies with stable 16 .S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.2. where the blue chip carry the higest value .companies with a short or erratic history of revenues and earnings issue them . that are very risky .these above average dividend tends to be paid by large.08% .2.1. these firms are generally leaders in their industries and are considered likely candidates for long term growth .because blue chip companies are held in such high esteem. 2007. general electric and McDonald 2.Nifty stocks represent about 57.9 S&P CNX NIFTY S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors of the economy. 3. which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product.24% of the traded value of all stocks on the NSE . they often set the standard by which other companies in their field are measured . index based derivatives and index funds.P CNX Nifty is professionally maintained and is ideal for derivatives trading 1.5 million is 0.they are the lowest of the low in price and many stock exchanges choose not trade them. Impact cost of the S&P CNX Nifty for a portfolio size of Rs. Coco-Cola. INCOME STOCKS Income stocks are those stocks that pay higher than average dividend over a sustained period .

Income stocks are popular with investors who want steady income for a long time and who do not need much growth in their stocks value .factors such as new management.earnings.companies that have good earning and growth potential but whose stock price do not reflect this are considered value companies . 4) VALUE STOCK A value stock is a stock that is currently selling at a low price .both the market and investors are largely ignoring their stocks. a new product or operation that are more efficient may make a value stock grow quickly. Investors who buy value stocks believe that thes3e stocks are only temporarily out of favor and will soon experience great growth . 17 .

oil &gas and automobile sector” 2. Pharma and Banking . Keeping this point in mind dissertation titled ‘risk and return analysis’ has been chosen to analyze fifteen different companies from five different sectors namely automobile.were selected for analysis This study is conducted to find out how the expected return is calculated from an investment and risk associated with that investment by measuring beta (β) and standard deviation.1 TITLE OF THE DISSERTATION The title of the dissertation is “Analysis of risk and return in banking. and it plays a part in the estimation of future unknown returns. InfoTech. Oil&gas. simply investing some where and waiting for the blessings of the goddess of luck doesn’t make any sense proper analysis of risk and the expected return is very important to become an efficient investor.The share price and market price for three consecutive month starting from January 2007 to march 2007 . and risk that the return that is achieved will be less than the return that was expected.pharmaceutical. Return is the motivating force and the principle reward in the investment process and it is the key method available to investors in comparing alternative investment. Making the money only the half of the battle safeguarding the hard earned money is the top most concern for many investors. . Measuring historical return allows investors to assess how well have done. The primary purpose of this dissertation is to focus upon return and risk and how they are measured. Investors want to maximize expected returns subjected to their tolerance for risk. 18 .2 STATEMENT OF THE PROBLEM Security analysis is built around the idea that investors are concerned with two principal properties inherent in securities: the return that can be expected from holding a security.CHAPTER 2: RESEARCH DESIGN 2. InfoTech.

3 REVIEW OF LITERATURE In the area of risk and return analysis two well known economist made effort to study the relation between risk and return and they are the people who quantify the risk and return aspects of an instrument .first.in this contest William Sharpe and others try to find out an answer for a question .this relationship is very useful in two important ways . predicts the relationship between the risk of an asset and its expected return .they are Harry markowitz and William Sharpe.(CAPM) The CAPM.Harry markowitz was the first person to show quantitatively why and how diversification reduce risk . The earning yields effect on stock return is significantly positive only in January for the sub period.what is the relationship between risk and return and they developed capital asset pricing theory .2. and right shift the returns spectrum earned by a value investor. Harry markowitz developed an approach that helps the investors to achieve his optimal portfolio position . He focused on high book to 19 . in essence.second it helps us to make an informal guess about the return that can be expected from an assets that has not yet been traded in the market. it produces a bench mark for evaluating various instrument . Very broadly the investment process consists of two tasks.in recognition of his seminal contribution in this field he was awarded the Nobel prize in economics in 1990. Piotroski investigates whether fundamental analysis can be used to provide abnormal returns.investors dealt with the concept of return and risk somewhat loosely . Portfolio theory.prior to the development of portfolio theory . It has explained the relation between the market price and book value. De Bondt and Thayler study the price in relation to book value in a universe of all NYSE and American Stock Exchange equity issue. with stock being assigned in quintiles from lowest price to book ratios. originally proposed by Harry markowitz in the 1950’s was the first formal attempt to quantify the risk of portfolio and develop a methodology for determining the optimal portfolio . The second task is portfolio selection which involves choosing the best possible portfolio from the set of feasible portfolio. The first task is security analysis which focuses on assessing the risk and return characteristics of the available investment alternatives.

Barely and Myers supported Quality of earning as a key performance measure. established track recode on the shareholders return. A switch in the depreciation method used for reporting purposes directly affects earning per share. 2.4 SIGNIFICANCE OF THE STUDY Indian security market moving to newer heights since from the last few years and the investors also getting reasonable income. This analysis is done at portfolio return on the excess returns for the market factors using CAPM. • Risk and return analysis would help the investor to park his money in most appropriate investment avenue.market securities. In this chaos where is the common investor who investing their hard earned money expecting a regular income and security of his investment so here it’s come the importance of risk and return analysis. and as such reflect a series of more or less arbitrary choices of accounting methods.the popular conception is if the risk is high the return one can expect would be high and vice versa.5% annually. means market is highly volatile and is still in the hands of speculators and gamblers. the procedures by which the account for two merging companies are combined the choice between expensing and capitalizing. or accounting figures. If some one 20 . Market Price <Book Value. The net cash flow to share holders after paying for future investment is sometime s knows as “company’s cash flow”. other accounting choices which affect reported earning are the valuation of inventory. The total value of the companies existing stock is equal to the discounted value of that portion of the total dividend stream which will be paid to the stock outstanding today. The authors developed portfolio based on four fundamental conditions namely: Single Value P/E. It is based on the following argument “the problem is that the earnings that firms report are book. The investors are two type risk taker and risk averter. • Compare different investment option in terms of risk and return . and show that the mean return earned by a high book to market investor can be shifted to the right by at least 7. that some times more than expected but the next day the price would be crumbling down like a glass house this is the picture of Indian stock market.

• To guide the investors of various investment opportunities • To find out the risk less companies to invest in using beta values.5 OBJECTIVES OF THE STUDY • To analyze the risk and return of the companies. • To measure actual return and expected returns with the help of standard deviation and beta • To study the volatility of companies in comparison with the market. RANBAXY OIL&GAS SECTOR-ONGC. RELIANCE 21 .6 SCOPE OF THE STUDY In the national stock exchange (NSE)there are 1185 companies are listed so far out of this fifty companies are very important . another type of investor want regular income at the same time safety.From this fifty companies fifteen companies have been selected were chosen five different sectors .which form the S&P CNX Nifty index . • To quantify the systematic (non-diversifiable )and unsystematic (diversifiable )risk • Analysis the expected return from an investment option. BPCL.REDDY’S LAB. 2. • Risk and return analysis would help the investors to properly diversify his portfolio of securities. the measurement of beta will help the investor to quantify the systematic risk and unsystematic risk associated with the a particular investment • Investor can make portfolio revision at the right time with minimum cost by analyzing the risk and return of securities. ICICI BANK. 2. Portfolio revision is an inevitable part of an investment decision.the companies chosen BANKING SECTOR-SBI.wants to invest highly volatile stock with the expectation of high return he can go for that. • To make estimation on the amount of income one can expect from an investment is possible by analyzing the historical return of a particular stock. DR. HDFC BANK PHARMACEUTICAL SECTOR-SUN PHARMA.

the stock price and market index were collected from the national stock exchange official website(www.MAHINDRA &MAHINDRA.nse_india. The other kinds of formulae used are Computation of standard deviation Rate of return = (closing stock-opening stock)/ (opening stock)*100 Standard deviation calculated as per the excel formulae Variance= square of the standard deviation Computation of beta: Stock price(Y) = (closing-opening)/ (opening)*100 (of stock price) Market return(X) = (closing-opening)/ (opening)*100 (of index price) BETA (β) = (N*(∑X*Y) – (∑X*∑Y))/ (N*(∑ X^2)-(∑X) ^2) 2. 22 .MARUTI UDYOG LTD 2. INFOSYS.8 SOURCES OF DATA The data’s which is collected from various secondary sources like internet.com) apart from that data have been taken from different company websites . TCS AUTOMOBILE SECTORE –TATA MOTORS.INFOTECH –WIPRO.7 METHODOLOGY The following measures were used to analyze the data collected. journals and other publications . MS excel is used in order to calculate standard deviation and beta as well as to draw charts.

beta and standard deviation. The first chapter contains the introduction to the dissertation and the theoretical background of the problem. It’s been mentioned the importance of each sector to the Indian economy as well. • Risk can not be measured accurately as the market condition is always fluctuating and uncertain. methodology and limitation of the study etc. The fourth chapter deals with the data analysis and interpretation section. each chapter deals with different aspects of this project. The third chapter would give an idea of the current Indian economy and the industry have been selected and also about the companies come under study.2. here data’s been analyzed by using mathematical formula to find out the expected return.9 CHAPTER SCHEME This dissertation consists of five chapters. The final and fifth chapter consists of finding derived from this study. In this chapter gives an idea about different type of return and risk apart from that brief about Indian stock exchanges like BSE and NSE. • The study is mainly based on secondary data and no field work is done because of time constraint. • To analyze the risk and return only standard deviation and beta is used and no other statistical tools are used 2.significance of this study . • The study is limited to data of the last three months only. the important topics of this chapter is statement of the problem .scope. conclusion and the recommendations to the investors. The second chapter deals with the way in which the study has been conducted. 23 .8 LIMITATIONS OF THE STUDY • The area of study is limited to few sectors of group a stock.

0%has been achieved by the economy in only five years of recorded history. During the seventies and the eighties. along with China and India. and two out of these five are in 24 . According to some experts. Within Asia. the share of the US in world GDP is expected to fall (from 21per cent to 18 per cent) and that of India to rise (from 6 per cent to 11 per cent in 2025). the Indian economy.CHAPTER: 3 PROFILES 3.growth of gross domestic product (GDP) at constant prices in excess of 8. though its impact will be a little over half that of the US. The transformation into a tri-polar economy will be complete by 2035.5% in the two previous year is projected to grow at 11% in the current year 200708.A GROWING ECONOMY In a robust demonstration of the nascent strength. India. INDIA . will overtake Japan and become third major economic power within 10 years. followed by the US and Japan with a decline of about 1 percentage points each. leading to the shift of focus from the us and the rich countries of Europe to the two Asian giants. By 2025 the Indian economy is projected to be about 60 per cent the size of the US economy.9 percentage points.5% and 9. and hence the latter will emerge as the third pole in the global economy after the US and China. after growing at 8. the rising share of China and India has more than made up the declining global share of Japan since 1990. with the Indian economy only a little smaller than the US economy but larger than that of Western Europe.1 THE INDIAN ECONOMY –AN OVERVIEW Economics experts and various studies conducted across the globe envisage India and china to rule the world in the 21st century. India is likely to be a larger growth driver than the six largest countries in the EU. The rich countries of Europe have seen the greatest decline in global GDP share by 4. For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then.India and China. which is now the fourth largest economy in terms of purchasing power parity. US and the rich countries of Europe to the two Asian giants. contributed to the rising share of Asia in world GDP. By 2035. ASEAN countries and during the eighties South Korea.India and China.

the Indian growth experience lags behind. in comparison to many East Asian economies. In fact. the growth rate for 2004-05 is less than that of 2003-04. Another positive feature was that the growth was accompanied by continued maintenance of relative stability of prices. the Indian economy has posted an excellent average GDP growth of 6. Though. Many factors are behind this robust performance of the Indian economy in 2004-05. it is still among the high growth Rates seen in India since independence. High growth rates in Industry & service sector and a benign world economic environment provided a backdrop conducive to the Indian economy. This can be achieved by bringing more area under irrigation and by better water management. The tenth five-year plan aims at achieving a growth rate of 8% for the coming 2-3 years.8% since 1994 (the period when India's external crisis was brought under control). agriculture fell sharply from its 2003-04 level of 9 % to 1.1% in the current year primarily because of a bad monsoon.7% per year in the 23-year growth record. Thus.the last three years Growth in the Indian economy has steadily increased since 1979. averaging 5. having growth rates above 7%. 25 . However. there is a paramount need to move Indian agriculture beyond its centuries old dependency on monsoon. However.

The first fully Indian owned bank was the Allahabad Bank. namely.2. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. At that point of time. By the 1900s. the market expanded with the establishment of banks such as Punjab National Bank. Lend at 6%. The new policy shook the Banking sector in India completely.1 BANKING SECTOR Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. Calcutta was the most active trading port. 26 . ICICI Bank and HDFC Bank. This move. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. in 1906. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. which was established in 1865. the Reserve Bank was nationalized and given broader powers.3. kick started the banking sector in India. along with the rapid growth in the economy of India. government banks. which came to be known as New Generation tech-savvy banks. in 1895 in Lahore and Bank of India. A couple of decades later. which has seen rapid growth with strong contribution from all the three sectors of banks. foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment. Go home at 4) of functioning. were used to the 4-6-4 method (Borrow at 4%. and due to which banking activity took roots there and prospered. After India's independence in 1947. In the early 1990s the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks. which included banks such as UTI Bank (the first of such new generation banks to be set up). Both these banks are now defunct.at present it has gone up to 49% with some restrictions. This was followed by Bank of Hindustan. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. mainly due to the trade of the British Empire. Bankers. till this time.2 INDUSTRY PROFILE 3.both of which were founded under private ownership. in Mumbai . private banks and foreign banks.

Currently. The Reserve Bank of India is an autonomous body. product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. 29 private banks (these do not have government stake. mortgages and investment services are expected to be strong. Currently (2007). Even in terms of quality of assets and capital adequacy.000 branches and 17. They have a combined network of over 53. with the private and foreign banks 27 . M&As. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has mostly been true. overall. strong and transparent balance sheets-as compared to other banks in comparable economies in its region.All this led to the retail boom in India. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. a rating agency. asset sales and much more action will happen on this front in India. the demand for banking services-especially retail banking.28 public sector banks (that is with the Government of India holding a stake). takeovers. with minimal pressure from the government. In March 2006.000 ATMs. According to a report by ICRA Limited. banking in India is considered as fairly mature in terms of supply. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. India has 88 scheduled commercial banks (SCBs) . People not just demanded more from their banks but also received more. Indian banks are considered to have clean. the public sector banks hold over 75 percent of total assets of the banking industry. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector. they may be publicly listed and traded on stock exchanges) and 31 foreign banks.

FDA-approved manufacturing facilities in India. Growths in other fields notwithstanding.2.S. Most pharma companies operating in India. employ Indians almost exclusively from the lowest ranks to high level management. almost 25% of all Abbreviated New Drug Applications (ANDA) to the FDA are expected to be filed by Indian companies. mostly to the United States and Russia. India currently holds a modest 3 % share. In terms of the global market. and while they streamed out. multinationals represent only 35% of the market. Mirroring the social structure. Indian companies started to take their places. Bengal Chemicals and Pharmaceutical Works.S. are often a mix of public and private enterprise.3. and in 2008. the industry as a whole has been following this business model until the present. even the multinationals. 85% of these formulations were sold in India while over 60% of the bulk drugs were exported. London research company Global Insight estimates that India’s share of the global generics market will have risen from 4% to 35% in 2006. This patent act removed composition patents from food and drugs. enabled the industry to become what it is today. The lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market. like many other businesses in India. down from 70% thirty years ago. generics are still a large part of the picture. 250 of the largest companies control 70% of the Indian market. most of the drugs in India were imported by multinationals either in fully-formulated or bulk form. Thanks to the 1970 Patent Act. The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s.2 PHARMACEUTICAL INDUSTRY The first Indian pharmaceutical company. There are 74 U. these were shortened to a period of five to seven years. and with the Patents Act in 1970. They carved a niche in both the Indian and world markets with their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Most of the players in the market are small-to-medium enterprises. appeared in Calcutta in 1930. more than in any other country outside the U. but it has been growing at approximately 10% per year. firms are very hierarchical. Although many of these companies are publicly owned. over 20. which still exists today as one of 5 government-owned drug manufacturers. Although some of the larger companies have taken baby steps towards drug innovation. For the next 60 years.000 registered drug manufacturers in India sold $15 billion worth of formulations and bulk drugs. and though it kept process patents. leadership passes from father to son and the founding family holds a majority share. India gained its foothold on the global scene with its 28 . Homegrown pharmaceuticals.

Economic Survey 2006-07 says: During 2005-06. In recent years this has taken the form of trying to get a stake in oil and gas fields from Myanmar to central Asia and Africa. refinery throughput at 130. Crude oil production in 2006-07 up to December 2006 was 25.11 million tones was up 2.1 per cent from 127.42 per cent from 24.Wockhardt. biocon . China and Japan. after the United States. sun pharma .03 million tones in the first nine months of 2005-06.42 million tones in the previous year. the cost effectiveness of refining in India is drawing global players here. are run by state-run companies. Most of the country's 19 refineries. and it is now seeking to become a major player in outsourced clinical research and development The important players in the Indian pharmaceutical sector are dr. Besides. Its share approximates US$ 13. However. year-on-year. Since India is dependent on imports for nearly 70 per cent of its petroleum requirements. was down 2.97 million tonnes per year as of December 2006. Natural gas production up to December 2006 at 23.53 billion cubic meters.Ranbaxy.40 million tones.85 per cent. India is projected to replace South Korea and emerge as the fourth-largest consumer of energy. Aventis Pharma.42 million tones. barring two. Novo Nordisk 3. the throughput was 107. While 29 . Serum Institute of India . up 6. Recent finds are making oil majors take notice of the potential in prospective basins. oil and oil equivalent of gas (O+OEG) production in 2006-07 up to December 2006. India ranks sixth in the world in terms of petroleum demand and by 2010. the major thrust still lies in searching for hydrocarbons in onshore and offshore blocks in India.58 billion.innovatively-engineered generic drugs and active pharmaceutical ingredients (API). Thus.2. energy security has become a prime Government concern.3 OIL&GAS INDUSTRY Indian oil and gas industry estimated to be a US$ 90 billion industry.03 per cent from 24. During April-December 2006. however.reddy’s lab.10 billion cubic meters in the same period of the previous year. increased by only about 1. on the aggregate.cipla. with a capacity to process 148. the Indian oil and gas industry is among the largest contributors to the central and state exchequers in India.

British gas . & Canada) in India’s software exports is about 61 per cent. and e-businesses thus creating a number of opportunities for Indian companies.BP. In addition to the export market.in terms of employment generation this sector alone giving 2. software products. development of discovered fields. The main players of Indian oil and gas sector are ONCE. Growing energy demand of India and necessity to service that to ensure economic growth is not compromised. prospective blocks to encourage all these sectors provide business and investment opportunities.5 % of the overall GDP growth of India and its account for 35% of the total export from in India .2 million jobs . India exports software and services to nearly 95 countries around the world. Government of India (GOI) has taken a major step towards promoting the domestic industry and achieving the full potential of the Indian IT entrepreneurs by forming a new ministry for IT .shell etc 3. gas and products.7 billion (including over $4 billion worth of software exports) in 1999-2000.BPCL. domestic oil companies are being invited by countries such as Yemen.HPCL. IT enabled services. Reliance energy .The market capitalization of Indian IT companies come around US $225 billion. all of these segments have a domestic market component as well.cairn energy . refining to service the petroleum product domestic demand and exports. more than a third of Fortune 500 companies outsourced their software requirements to India According to a NASSCOM-McKinsey report. Today IT & ITES sector contribute over 7.2.S.4 INFOTECH INDUSTRY The Indian software industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ 5. No other Indian industry has performed so well against the global competition. international companies are looking for a share in the fast-growing refinery sector. annual revenue projections for India’s IT industry in 2008 are US $ 87 billion and market openings are emerging across four broad sectors. Constraints have been comprehensively identified and steps taken to 30 . Nigeria and Saudi Arabia to pick up stake in existing refineries and also set up Greenfield units.on the one hand. The share of North America (U. transportation of crude oil. Exploration for domestic production growth. retailing infrastructure. presents business opportunities in the complete value chain of oil and gas sector. IT services. Today. In 1999-2000.

Also. 3. the sale of cars has reached a figure of 1 million users and is expected to increase further. It's also to be noted that the demand for luxurious models. the improvement in the living standards of the middle class. the institutionalization of automobile finance has further paved the way to sustain a long-term high growth for the industry. is a result of a two major factors namely. India has the second largest English-speaking scientific professionals in the world. It is estimated that India has over 4 million technical workers.5 AUTOMOBILE INDUSTRY The Indian automotive industry has flourished like never before in the recent years. U. especially from Japan. A.832 educational institutions and polytechnics. Thus. Also. venture capital has been the main source of finance for software industry around the world. the liberalization steps. and an increase in their disposable incomes. majority of the software units in India is in the small and medium enterprise sector and there is a critical shortage of venture capital kind of support.2. Moreover. largely due to increase in the consumer's buying capacity. This extra-ordinary growth that the Indian automotive industry has witnessed.785 computer software professionals every year. As India's transport network is developing at a fast pace. SUVs. have played an equally important role in bringing the Indian Automotive industry to great heights. have shot up. initiated by the Government of India. India’s most prized resource in today’s knowledge economy is its readily available technical work force. relaxation of the foreign exchange and equity regulations. second only to the U. the industry has strong backward and forward linkages and hence provides employment to a large 31 . Automobile Industry is growing too.. Government of India is stepping up the number and quality of training facilities in the country to capitalize on this extraordinary human resource. Thus for example. S.overcome them and also to provide incentives. reduction of tariffs on imports. which train more than 67. over 1. It is estimated that the sale of passenger cars have tripled compared to their sale in the last five years. and mini-cars for family owners. and refining the banking policies. such as. The increased demand for Indian automobiles has resulted in a large number of multinational auto companies. For rapid development a well-developed and well-knit transportation system is essential.S. However. A well developed transport network indicates a well developed economy. entering the Indian market and working in collaboration with the Indian firms. and Europe.

Maruti Udyog. Mahindra and Mahindra. two-wheelers. etc. Bajaj. The two-wheeler manufacturing is dominated by companies like TVS. The heavy motors like buses. The major Car manufacturer are Hindustan Motors.. All kinds of vehicles are produced by the Automobile Industry.. Hero Honda. buses. auto rickshaws and other multi-utility vehicles are manufactured by Tata-Telco. Toyota Kirloskar Motor Ltd. Ltd. Ford India Ltd . two-wheeler manufacturing and heavy vehicle manufacturing units.) Ltd. Honda Siel Cars India Ltd. Skoda India Private Ltd..section of the population.. defense vehicles. trucks.. 32 . It includes the manufacture of trucks.Hyundai Motors India Ltd. defense vehicles. Ashok Leyland. Bajaj.. The industry can be broadly divided into the Car manufacturing. to name a few... General Motors India Pvt. Thus the role of Automobile Industry cannot be overlooked in Indian Economy. etc. Yamaha. Honda Motorcycle & Scooter India (Pvt. passenger cars. Fiat India Private Ltd. etc. Eicher Motors.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking. an Indian financial institution. In the 1990s. Bahrain.3. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001.3 PROFILE OF THE COMPANIES ICICI BANK ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI Bank is India's second-largest bank with total assets of about Rs. United Arab Emirates. China. ICICI Bank is the most valuable bank in India in terms of market capitalization 33 . 20. In 1999.05 bn (US$ 449 mn) for the year ended March 31. and was its wholly-owned subsidiary. ICICI Bank currently has subsidiaries in the United Kingdom. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. the Government of India and representatives of Indian industry. Hong Kong. South Africa and Bangladesh. venture capital and asset management. 25. ICICI Bank has a network of 741 branches (including 48 extension counters) and over 3300 ATMs in India and presence in 30 International locations. Sri Lanka and Dubai International Finance Centre and representative offices in the United States. life and non-life insurance. branches in Singapore. 2. ICICI was formed in 1955 at the initiative of the World Bank. 2005). ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. The principal objective was to create a development financial institution for providing mediumterm and long-term project financing to Indian businesses.513. both directly and through a number of subsidiaries and affiliates like ICICI Bank. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.40 bn (US$ 569 mn) for the year ended March 31. Our UK subsidiary has established a branch in Belgium. . 2006 (Rs.3 bn) at March 31. 2006 and profit after tax of Rs. Russia and Canada.89 bn (US$ 56. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services.

trusts. The bank offers many innovative products & services to individuals.HDFC BANK HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". Roughly 31.4. and all branches of the bank are linked on an online real-time basis. Since its inception in 1977.311. India. Mumbai and the National Stock Exchange. partnerships.450 crore (Rs. Currently (2007). HDFC was ideally positioned to promote a bank in the Indian environment. with its registered office in Mumbai. The paid-up capital is Rs. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'.1 billion). Its outstanding loan portfolio covers well over a million dwelling units. a strong market reputation.1% of the bank's equity and about 19. governments. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. large shareholder base and unique consumer franchise. as part of the RBI's liberalization of the Indian Banking Industry in 1994.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).9 crore (Rs. The HDFC Group holds 22. The shares are listed on the The Stock Exchange. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. HDFC Bank has over 600 branches located in over 300 cities of India. financial institutions. corporate.5 billion).3. The authorized capital of HDFC Bank is Rs. With its experience in the financial markets. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. currently (2007) 34 . the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages.000 shareholders.

With an asset base of $126 billion and its reach. All these Presidency banks were incorporated as joint stock companies. namely. The bank has the largest ATM network in the country having more than 5600 in number [1]. It is also. it is a regional banking behemoth. later renamed the Bank of Bengal. with over 4500 branches being incorporated so far. The government amalgamated Bank of Bengal and two other Presidency banks. State Bank of India has electronically networked most of its metropolitan. 35 . and were the result of the royal charters. Established in 1806 as Bank of Bengal. With more than 9400 branches and a further 4000+ associate bank branches. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as the nation's central bank printing currency. through its vast network in India and overseas. Following its arch-rival ICICI Bank. the SBI has extensive coverage. The State Bank of India has had steady growth over its history.STATE BANK OF INDIA State Bank of India (SBI) is the largest bank in India. it remains the oldest commercial bank in the Indian Subcontinent and also the most successful one providing various domestic. The government nationalized the bank in 1955. State Bank of India has often acted as guarantor to the Indian Government. The roots to the State Bank of India are traceable to the first decade of 19th century. with the Reserve Bank of India taking a 60% ownership stake. In recent years the bank has focused on reducing its huge staff through Golden handshake schemes and computerizing its operations. The Imperial Bank of India continued to remain a joint stock company. most notably during Chandra Shekhar's tenure as Prime Minister of India. when the Bank of Calcutta. urban and semi-urban branches under its Core Banking System (CBS). measured by the number of branch offices and employees. the largest bank in the world. was established on 2 June 1806. the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921. though it was marred by the Harshad Mehta scam in 1992. international and NRI products and services. and named the reorganized banking entity the Imperial Bank of India.

Russia. Reddy’s continues its journey. bacterial infection. Leveraging on its ‘Low Cost. custom pharmaceutical services. The company conducts research in the areas of cancer. producing a wide range of quality. South Africa) countries contributed US $194 Mn and US $ 477 Mn to global sales. Today. an entrepreneur-scientist. India. . 2006. Reddy’s Laboratories was founded by Dr Anji Reddy. RANBAXY LABORATORIES LIMITED Ranbaxy Laboratories Limited. Brazil. The DNA of the company is drawn from its founder and his vision to establish India’s first discovery led global pharmaceutical company. trusted by healthcare professionals and patients across geographies. Dr. For the twelve months ended December 31. international pharmaceutical company. The Company's largest market. USA with the sales of US $ 380 Mn. REDDY’S LABORATORIES Dr. Overseas markets accounted for around 80% of global sales. the Company's Global Sales were at US $1340 Mn. It markets its products in approximately 100 countries worldwide. together with its subsidiaries. active pharmaceutical ingredients and intermediates. It focuses on formulations. in 1984. It is ranked amongst the top ten generic companies worldwide. Reddy’s Laboratories Limited. The Company has world class manufacturing facilities in 9 countries on ground presence in 49 countries and its products available in over 125 countries across the globe Ranbaxy was incorporated in 1961 and went public in 1973.DR. In fact. China. based in India . and metabolic disorders. The United States. Taking on new challenges and growing stronger and more capable. Germany. Russia. research based. operates as a pharmaceutical company worldwide. and drug discovery. 36 . cardiovascular disorders. generic drugs. is an integrated. while Europe and BRICS (Brazil. Each failure and each success renewing the sense of purpose and helping the company evolve Dr. biotechnology products. the United Kingdom. critical care products. DRF 1042 for the treatment of various types of cancer. affordable generic medicines. it is this spirit of entrepreneurship that has shaped the company to become what it is today. Foraying into new markets and new businesses. The company has an agreement with ClinTec International for the development an anti-cancer compound. including India. High Intellect’ advantage. and South Africa.

For the acquisitions. product selection and 37 . Sales were initially limited to 2 states . In India. 2 in India and 1 in South Africa). 1 in the US. Russia. By 2000. Sales were rolled out nationally in 1985.West Bengal and Bihar. joint ventures and representative offices across the globe with a presence in 23 of the Top 25 pharma markets of the world. A balanced geographical presence coupled with a strong product flow from a wide therapeutic range serve as the business building blocks of the Company. UK. including 8 in 2006 (4 in Europe. leveraging its strong brand building skills. the commercial capital of the country. 55 crore issue of a Rs. by 1997. as well as for acquisitions. A new research center was set up in Mumbai for generic product development for the US market. as new therapy areas were entered into post acquisition. Romania and South Africa. Growth through acquisition is one of Ranbaxy’s stated strategies. They used this money to build a Greenfield site for API manufacture. our headquarters were shifted to Mumbai. Spain and several other markets in the Asia Pacific. several of these were introduced for the first time in India. they had completed 8 acquisitions. each such move adding new therapy areas or offering an entry to important international markets. We began on the first of our international acquisitions with an initial $7. and the Rs. the owner family continues to hold a majority stake in Sun Pharma. Detroit. customer attention. Important products in Cardiology were then added. The Company has successfully concluded 15 acquisitions since 2004. one of the first products launched at that time has since become one of our largest selling products. 10 face value equity share at a premium of Rs. India. India and emerging markets based on value and synergies that can be unlocked from such transactions.5 million investment in Caraco Pharma Labs. Italy. France. Products that are used in cardiology were introduced in 1987. Sun Pharma was listed on the main stock exchanges in India in 1994. 140/. and is strengthening its business in Japan. Ranbaxy has robust operations in USA. The minimum 25% that was required under the regulations then for listing was offered to the public. SUN PHARMA Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Germany. Ranbaxy will continue to look at target acquisitions in US.Ranbaxy has an expanding international portfolio of affiliates.was oversubscribed 55 times. While the Company is aggressively pursing its internationalization strategy it has also gained market leadership in India. and Monotrate. Europe.

focused marketing helped us gain a foothold in areas like orthopedics.258 Crore and the fourth-highest Economic Value-Added (EVA) of Rs. Ranks 24th among Global Energy Companies by Market Capitalization in PFC Energy 50 (December 2004). [ONGC was ranked 17th till March 2004. oncology. Typically companies or assets that could be turned around and brought on track were identified. Subsequently. were discovered. This discovery. Business Baron 500 and Business Week. Caraco. Net Worth and Net Profits. along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. In the inland areas. now known as Mumbai High. a research center spread over 16 acres was inaugurated by the President of India. etc. with special lab space for drug discovery and innovation. ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field. over 5 billion tones of hydrocarbons. Business Today 500. before the shares prices dropped marginally for external reasons. which were present in the country. as it began to receive approvals after successful inspection by the USFDA. by Market Capitalization. in current listings of Economic Times 500 (4th time in a row). 24. gynecology. From a ranking at 38th in 1994. ahead of private sector leaders like Reliance 38 . The most important contribution of ONGC. The year 2000 was the year of turnaround at the US subsidiary. however. 596 Crore. In December 2004. as assessed in the 5th Business Today-Stern Stewart study (April 2003). ONGC placed at the top of all Indian Corporate listed in Forbes 400 Global Corporate (rank 133rd) and Financial Times Global 500 (rank 326th). by 2000 they were ranked 5th with a leadership in 8 of the 11 therapy areas that we are present in. by Market Capitalization. while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). is its self-reliance and development of core competence in E&P activities at a globally competitive level. ONGC Has created the highest-ever Market Value-Added (MVA) of Rs. ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat). with its activities spread throughout India and significantly in overseas territories. ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High. It recognized as the Most Valuable Indian Corporate. ONGC Since its inception.

one of India's largest conglomerates. The company is headed by Anil Ambani. REL is a key player in this transformation process. This will help the company position itself as a global integrated energy player under the Reliance banner. responsible corporate citizenship and profitable growth. operational and financial excellence.The company's corporate Headquarters is situated in Sector 24. 39 . It also runs power generation. Reliance Energy plans to increase its power generation capacity by adding 16. REL is committed to creating superior value for all its stakeholders and be amongst the most admired and trusted utility companies in the world by setting new benchmarks in standards of corporate governance. Goa and Andhra Pradesh. ONGC is the only Public Sector Enterprise to achieve a positive MV A as well as EVA. will provide an enormous opportunity to scale up power generation capacities in India. transmission and distribution of power in Maharashtra. REL is part of the Reliance industries-India's private sector company ranked among the world's 175 largest companies in terms of net profit and the 500 largest companies in terms of sales. Reliance's gas finds in KG-D6 block in Krishna Godavari basin which constitutes 60% of India's present total gas production. With the new gas find. Reliance Energy Ltd is India's leading integrated power utility company in the private sector. REL and its affiliate power companies rank among the top 25 listed private sector companies on major financial parameters. REL has the unique advantage of integration from 'well head to wall socket'.000 MW with investments of $13 billion.Noida. transmission and distribution businesses in other parts of Maharashtra. It has a significant presence in generation.Anil Dhirubhai Ambani Group [1] banner. The company is the sole distributor of electricity to consumers in the suburbs of Mumbai. With the ushering in of the power sector reforms and in the new environment of opportunity for the power sector.and Infosys. RELIANCE ENERGY Reliance Energy came into existence when it took over BSES in 2002 is a company under the Reliance . Goa and Andhra Pradesh.

TCS continues to invest in new technologies.000. TCS focuses on helping global organizations address their business challenges effectively. BPCL is a Fortune Global 500 company as per the ranking of 2006. chemicals. Through its Global Network Delivery Model. From generating novel concepts through TCS Innovation Labs and academic alliances.7. 3. which has interests in areas such as energy. 40 . The important three are Mumbai Refinery .For fiscal year 2005-06. it posted a net profit of Rs. to drawing on the expertise of key partners. Tata Consultancy Services (TCS). consulting. It is involved in the refining and retailing of petroleum products. and people which can help its customers succeed.TCS is part of one of Asia's largest conglomerates and most respected groups.3 MMT.12 Million Metric Tones (MMT) Capacity. it helps its customers experience certainty in their every day business.5 MMT.667 TATA CONSULTANCY SERVICES LIMITED (TCS LIMITED) Tata Consultancy Services Limited (TCS Limited) is an information technology. engineering an IT solution. As the name suggests its interests are in Petroleum sector. or executing an outsourcing strategy. Kochi Refinery . it keeps clients operating at the very edge of technological possibility.BHARAT PETROLEUM CORPORATION LIMITED (BPCL) Bharat Petroleum Corporation Limited (BPCL) is one of India's largest PSU companies. Whether TCS is envisioning a business advantage. On 1st August 1977. As of 2006. it is Asia's largest IT services firm with annualized revenues of over US $4 billion (estimated for FY 2006-07) and has the largest number of employees among all the Indian IT companies with strength of over 87. Numaligarh Refinery .709. telecommunications. services and business-process outsourcing organization which commenced operations in 1968. Innovation Network. and Solution Accelerators. BPCL had registered revenue of $ 17. processes. The government of India formed the company by taken over Burma shell group of companies in 24th January 1976. It was also the first refinery to process newly found indigenous crude (Bombay High). It was ranked at position 368. engineering and materials. financial services.613 billion in 2006 and has employee strength of 14. in the country BPCL has a number of refineries in India. the Tata Group. it was renamed Bharat Petroleum Corporation Limited.

Cisco. Seagate. Microsoft. North America and Asia Pacific. Europe and Japan including 50 of the Fortune 500 companies. In 2001 it was rated "Best Employer in India" by Business Today. From inception. R. Europe. IBM. the capital of Karnataka. Narayana Murthy and six of his colleagues. In 1999 Infosys attained a SEI-CMM Level 5 ranking and became the first Indian company to be listed on NASDAQ.000 employees worldwide.[3] and in 2002 Business World named Infosys "India's Most Respected Company". Managing Director and majority stake owner is Azim Premji. being the only Indian company to win this award 41 .[1] Wipro Technologies has over 300 customers across USA. In 1983. for the years 2004 and 2003. Infosys won the Global MAKE (Most Admired Knowledge Enterprises) award. the software and hardware divisions have been headed by him INFOSYS TECHNOLOGIES LIMITED Infosys Technologies Limited is an information technology (IT) Services Company founded in Pune. in operation since 1945). It is the third largest IT services company in India. Prudential. Annual revenues for fiscal year 2007 exceeded US$3. Wipro is one of India's major information technology companies. Wipro has dedicated development centers and offices across India. Infosys moved its headquarters to Bangalore. Sony. It is headquartered in Bangalore. Ericsson. It has 68.WIPRO TECHNOLOGIES Wipro Technologies is an IT service company established in 1980 in India. With revenue in the excess of US $3 billion. It is listed on the New York Stock Exchange and is part of its TMT (technology media telecom) index. Sun Microsystems and Toshiba.1 billion with a market capitalization of over US$30 billion. India in 1981 by N. Infosys is one of India's largest IT companies. With over 72. The current Chairman. Some of its customers are Boeing. inclusive of its BPO arm which it acquired in 2002.000 employees as of Apr 2007. It is a subsidiary of Wipro Limited (incorporated 1946. It operates nine development centers in India and has over 30 offices worldwide.

information technology and financial services.MAHINDRA&MAHINDRA The Mahindra Group is a US $4 billion* conglomerate is a leading manufacturer of multi-utility vehicles and tractors with significant presence in key sectors like infrastructure. Mahindra & Mahindra has entered into partnerships with international companies like Renault SA. Club Mahindra Holidays. Based in Italy. Asia. Mahindra & Mahindra's products are being exported to the USA. The company is a market leader in the Utility Vehicle segment. Mahindra & Mahindra has made strategic acquisitions of plants in China and the United Kingdom. France.000 people and has eight state-of-the-art manufacturing facilities in India. Russia and several other countries in Africa. The Group employs over 34.Trade and Financial Services (Mahindra Intertrade. and Infrastructure Development (Mahindra GESCO.. Set up in 1945 to make general-purpose utility vehicles. and has three assembly plants in the USA. offering over 20 models including new generation multi-utility vehicles like the Scorpio and the Bolero. Mahindra Ugine). Mahindra South Africa and Mahindra (China) Tractor Company Limited .Mahindra & Mahindra’s Automotive Sector makes a wide rage of vehicles including MUVs. Now the Group has a leading presence in many other key sectors -. Bristlecone). The Group completed 60 years in 2005. USA. 42 . Europe and Latin America. Mahindra Systems and Automotive Technologies (Mahindra Engineering Services. The company branched out into manufacturing light commercial vehicles and agricultural tractors. Two Group companies Mahindra Finance and Tech Mahindra made their debut on the bourses in 2006 in line with the commitment that each of the business segments would have flagship companies that will be listed. Mahindra & Mahindra first became known as the maker of the iconic Jeep in India. LCVs and three wheelers. Mahindra World City). Mahindra & Mahindra is the largest manufacturer of MUVs. Information Technology (Tech Mahindra. Mahindra & Mahindra rapidly grew from being a maker of army vehicles and tractors to a major automobile manufacturer with a growing global appetite. Its global subsidiaries include Mahindra Europe Sal. Mahindra & Mahindra Financial Services Limited). and International Truck and Engine Corporation. Mahindra USA Inc.

Forbes has ranked the Mahindra Group in its Top 200 list of the World’s Most Reputable Companies and in the Top 10 list of Most Reputable Indian companies. The company's manufacturing base is spread across Jamshedpur. services and spare parts network comprising over 2. manufactures and markets tractors as well as farm implements. where it assembles 14 products for the American market. 24. Over the years. It designs. develops. and the second largest in the passenger vehicles market with winning products in the compact. 'Mahindra' tractor has come to be recognized as a powerful symbol of productivity and performance. for establishing Total Quality Management in all operations.5 billion) in 2005-06. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). the Mahindras has transformed itself into a group that has a leadership position in all the sectors it operates in and has a growing global footprint. Mahindra & Mahindra has a 100% subsidiary. Mahindra & Mahindra Limited is the only tractor company in the world to have achieved this honor. It is also the largest manufacturer of tractors in India with sustained market leadership of around 23 years. since the first rolled out in 1954.000 crores (USD 5. The Sector has also found significant success in the international market. sales.000 touch point. Mahindra USA. has also emerged as a global automotive company. Close to 4 million Tata vehicles ply on Indian roads. best in the products we deliver. Tata Motors' presence indeed cuts across the length and breadth of India. Pune and Lucknow. TATA MOTORS LIMITED Tata Motors Limited is India's largest automobile company. In 43 .Mahindra & Mahindra is the fourth-largest tractor company in the world. supported by a nationwide dealership. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.000 employees are guided by the vision to be best in the manner in which we operate. Farm Equipment Sector received the coveted Deming Application Prize for manufacturing in 2003. with revenues of Rs. and best in our value system and ethics. It is the leader by far in commercial vehicles in each segment. The company's 22.Established in 1945. Tata Motors. Mahindra (China) Tractor Company Limited manufactures tractors for the growing Chinese market and is a hub for tractor exports to the USA and other western nations. midsize car and utility vehicle segments.

Tata Motors and the Fiat Group have recently signed a memorandum of understanding to establish an industrial joint venture in India to manufacture passenger With 1. and in South Korea. Besides product development. a reputed Spanish bus and coach manufacturer. The years to come will see the introduction of several other innovative vehicles. In 2005.2004. Through its subsidiaries. Hispano's presence is being expanded in other markets. 44 . The pace of new product development has quickened.400 engineers and scientists. all rooted in emerging customer needs. automotive vehicle components manufacturing and supply chain activities. and the UK. Simultaneously. Jamshedpur. India's first indigenously developed mini-truck. With the foundation of its rich heritage. In 2005. Korea's second largest truck maker. and is engaged in community and social initiatives on human rights. and automotive retailing and service operations. serving rural communities adjacent to its manufacturing locations. the company is engaged in engineering and automotive solutions. has enabled pioneering technologies and products. it has formed a joint venture with the Brazil-based Marcopolo. highprecision tooling and plastic and electronic components for automotive and computer applications. auto finance. the company's Engineering Research Centre. established in 1966. it also plays an active role in community development. The company today has R&D centers in Pune. construction equipment manufacturing. Tata Motors today is etching a refulgent future. Spain. machine tools and factory automation solutions. Tata Motors is committed in letter and spirit to Corporate Social Responsibility. with an option to acquire the remaining stake as well. a global leader in body-building for buses and coaches. it acquired the Daewoo Commercial Vehicles Company. to manufacture and assemble fully-built buses and coaches. labour and environment standards in compliance with the principles of the Global Compact. in India. Tata Motors created a new segment by launching the Tata Ace. Lucknow. In 2006. It is a signatory to the United Nations Global Compact. True to the tradition of the Tata Group. R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. Tata Motors acquired a 21% stake in Hispano Carrocera. The rechristened Tata Daewoo Commercial Vehicles Company has already begun to launch new products.

18. the term "Maruti" is commonly used to refer to this compact car model. though the actual production commenced in 1983. Maruti 800.MARUTI UDYOG LTD Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market leader in the car segment. Currently. The company annually exports more than 30. in popular Indian culture. till 2004.28% of the company is owned by the government. 45 . More than a million units of this car have been sold worldwide so far. was the India's largest selling compact car ever since it was launched in 1983. Maruti Alto tops the sales charts.000 cars and has an extremely large domestic market in India selling over five hundred thousand cars annually. Through 2004. depending up on export orders. Due to the large number of Maruti 800s sold in the Indian market. both in terms of volume of vehicles sold and revenue earned. Maruti are sold in India and various several other countries.2% by Suzuki of Japan. was associated to the Maruti 800 model. Cars similar to Maruti (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries. The Indian government held an Initial Public Offering of 25 % of shares in June 2003 Maruti Udyog Limited (MUL) was established in February 1981. and 54. Maruti has produced over 5 Million vehicles. Till recently the term "Maruti".

85 4078.065.95 1.05 4027.20686 -0.30 1.054.1.7856 VAR X*Y -0.774038 0.558935 -0.44404 -0.096.070.17945 18.333311 0.055.056.4 4007.00 1.037504 -0.95598 0.178427 0.061.079.328283 1.056.070.94161 -0.00 1.058.3 3988.056.05 4147.40231 1.15 4089.300986 0.3 3911.166435 0.7 4080.00 1.30 1.820168 0.7 SUM SD STOCK MARKET RETURN RETURN Y X -0.25281 0.45 4075.00 1.00 1.708544 SENSEX PRICE OPEN CLOSE 3966.15 3983.35453 -0.10 1.995712 25.314212 -2.57296 0.913889 0.793681 0.252185 2.538641 -0.099.104.3 3933.689953 0.359954 -0.86888 -1.45 1.76932 .00 1.28037 0.99785 -7.95 3850.86622 1.00 1.30 1.070.470704 7.00 1.9 4076.15 1.1 4066.452733 0.014908 -2.078.90 1.4 3910.90 1.03529 3.1 HDFC BANK DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 1.310009 2.5 4084.9 4092.2659 1.25273 -1.15 1.061.4 4124.054.75617 -1.30808 -1.647261 0.75388 -0.4 3933.24935 -3.013.05 1.90 1.94413 -1.181989 -0.45 4123.032.50 996.00 1.70 1.3 3852.55 4052.05 4126 4090.061.028617 1.008.65 1.062.076414 0.482521 0.050.90758 1.45 998.6 4102.20859 -0.7 4148.079.05 1.7 4024.4 4090.57733 1.410067 -1.71028 -0.CHAPTER IV DATA ANALYSIS AND INTERPRETATION 4.65 4066.066.630421 -0.098729 0.066.077 3.89089 1.018.16917 -2.068.4 3983.9514 1.56345 -0.4049 5.73542 1.8 3990.065.10314 0.10 1.6 4089.094.25 4007.976531 3.60 BETA 0.024.45 4052.05 1. X =MARKET RETURN 46 Y X X^2 1.63151 0.712432 -0.00 1.061.052.569333 0.45 4102.00 1.37089 0.85 4082.71558 -0.018.40 1.1883 TABLE 1 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK & MARKET RETURNS COMPARISION 5 4 RETURN 3 2 1 0 -1 -2 -3 -4 1/2 1/4 1/6 1/8 1/10 1/12 1/14 1/16 1/18 1/20 1/22 1/24 1/26 1/28 1/30 DATE GRAPH 1 Y=STOCK RETURN.00 1.00 1.25 3944.80 1.062173 0.032.849475 0.016453 0.338954 4.15 3942.754953 0.40 1.86426 11.22459 2.39743 0.60 1.95 1.042791 0.55077 -1.00 1.1 BANKING SECTOR 4.55678 -1.068.00 1.09479 -0.407965 -0.2 4109.040.475944 1.830634 1.

025873 6.101.9 3948.385025 8-Feb-07 1.55 4195.730583 12-Feb-07 1.562212 0.088.15 4215.9 2.2 4224.200883 -3.79962 92.029832 VAR 4.3 4096.00542 27-Feb-07 955 975.01572 -1.00 1.62204 SD 2.80 4232 4223.4 -0.915509 1.109.10 4140.086.60333 1.55 1.7 951.017.1758 14.32049 1.364004 14-Feb-07 1.65 4040 -3.55 -1.00 1.018.4 4137.35 4193.95413 -0.031.054389 -0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.5 -0.00 987.4 2.753551 7.17458 -2.30 4216.178979 0.46945 SUM -3.25 1.039.170246 1.188482 -1.368741 -0.82372 -9.05 1.25 1.25 4149.9 4047.62403 36.25 1.002958 15-Feb-07 1.1405 9.529435 0.3 BETA DATE OPEN CLOSE MARKET RETURN 1-Feb-07 0.25 4044.120217 TABLE 2 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE 47 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 X 2/3 RETURNS STOCK AND MARKET RETURNS COMPARISION 2/1 DATE STOCK RETURN SENSEX PRICE .07108 22-Feb-07 1.068. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.109.8 4146.95 4198.60 4164.2 4058.92671 -0.049.103.95 -0.35 1.073621 -0.00164 1.39021 1.55 -1.080.033.2 2.2 -1.2 1.001831 0.280301 6-Feb-07 1.00038 26-Feb-07 977.95 4083.16085 0.5 958.25 4164.620504 0.089.110.3 0.70 1.5 4187.103.36238 0.025.639024 2.71.476728 13-Feb-07 1.00 1.090.1 -2.912239 23-Feb-07 979.1954 0.881186 28-Feb-07 906 935 3893.50143 0.4 3745.26661 0.80387 -12.80 4046.25 1.00677 0.969359 0.239842 7-Feb-07 1.1 3942 -2.20321 0.2 4183.79 where as the beta value is 0.38284 4.80 4223.113.95731 0.030.093788 5-Feb-07 1.50 1.033222 19-Feb-07 1.65419 0.00 1.095.574223 0.023342 1.30644 1.73611 -1.9 -1.932673 21-Feb-07 1.943582 0.041296 9-Feb-07 1.90 1.70 4069. STOCK PRICE OPEN X X*Y 1.85 4106.37156 -3.85474 -2.1 4044.212861 1.55364 0.31753 2.75 3939.00901 -0.00 1.833449 0.95 -2.15 4096.07843 -0.106.13597 20-Feb-07 1.2 4046 3938.25 1. The above graph revels that the average stock return is well above the market return.096.045843 -0.016.085.045639 -3.64582 5.Standard deviation (total risk associated with stock) is 1.05 3893.048.35922 -0.39731 Y X^2 3.347806 -0.48974 0.00 4107.05 4187.041.109.456262 4.735884 2-Feb-07 1.

02522 2.85 3627.893121 11.65 935 955.23117 6.086422 4.00 1.728784 -4.165775 0.468705 1.Standard deviation (total risk associated with stock) is 2.37809 -0.35874 0.16565 0.1 3644.11302 -4.871902 0.79514 -0.55 3626.863059 2.279062 1.8463 1.833 2.403314 X*Y 3.74115 4.22738 -4.35 3608.77031 BETA SD TABLE 3 48 X^2 3.194484 -0.62055 -2.02 where as the beta value is 0.9 950.815762 0.3 3678.26798 0.00 973.96123 16.55 919 974.15 983 976.65 928.25 958 965. There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.65 3661.9 976.714946 9.015111 1.716232 3.8301 -4.5 3576.165 MARKET RETURN X 1.636836 -2.015625 0.75 3726.397.4 3641.212833 0.461338 0. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 STOCK PRICE OPEN CLOSE 960 980.025.95 965 918.705286 -1.40079 -1.90 1.011.05 3863.851188 3.24803 4.694407 -0.15 SENSEX PRICE OPEN CLOSE 3745.898109 13.775917 .4 935 903.723343 -1.504017 0.03567 -0.300353 0.6 3735. The above graph revels that the average stock return is well above the market return.757009 0.030.25 3770.807881 2.955006 2.91702 0.05 960 960.65 3726.6 921.20243 4.4115 0.9 3643.6 3639.268432 8.75 3861.95 3818.172233 2.001088 -0.3 980 937.861522 -11.74487 5.257502 -1. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.82902 -3.25 3761.945051 -3.6 989 1.40498 -1.5 910 924.05 929 927.65 3761.55 SUM STOCK RETURN Y 2.23575 0.267733 2.85 3718 3717.434227 11.15 3798.72915 1.15 926.98629 0.49538 -1.7 3764.12594 -1.756822 -2.9 3876.4 3811.55 3764.959224 -0.5 3577.4619 0.036138 0.75 946 954.009822 22.219685 3.45 952 933.32653 0.881033 VARIANCE 8.9 3680.731041 -1.35 3697.793319 3.95 956 915.55 3768.2 932.15 3655.60989 2.04099 0.743544 -26.114583 -4.55 3611.6 3697.2 3811.45 3734.5 3875.018.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.15 1.85 3821.001272 0.164008 1.36898 1.94769 3.2 973 958.75 3761.073583 0.1 3759.74849 0.45 3819.014766 -2.1 3788.50966 1.013557 1.

49 . In the month of March this stock is more fluctuating as a comparison to the market price. so the risk associated with this stock is comparatively low and proper diversification of the portfolio will help to eliminate the risk associated with this stock. The beginning months of any financial year always controversial especially in terms of politically and financially it will have a negative impact on the stock market . The above graph revels that the average stock return is below the market return.here is the case of HDFC bank the analysis revels up and downs quite frequently but not to much.the fluctuation of the stock is mainly because of these two risk .it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.88 where as the beta value is 0.770.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 8 RETURNS 6 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH 3 Standard deviation (total risk associated with stock) is 2. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.

1 4066.461746 -0.977692 -1.45 909.3 3911.4 977.35 915 972.24935 -0.39743 0.4 3933.58079 1.94665 STOCK R Y 0.86888 0.3 905.028617 1.456885 -1.25273 -0.042791 0.076414 0.85 971.37327 SENSEX PRICE OPEN CLOSE 3966.05 4027.67079 -0.4 3983.85 986.73542 0.86829 0.166435 0.7 4148.43979 4.972988 -14.7 4024.68162 0.3 977.098729 0.85 960.448069 0.34919 -3.45 991.57856 -1.617589 17.44745 0.85 4078.55 895 890.49749 2.2 ICICI BANK STOCK PRICE OPEN CLOSE 892 897.25 3944.610987 -1.796875 -1.55 988 991.04029 -0.3 999 974.359954 -0.037504 0.314212 -0.407965 -0.9 4076.6 4089.4049 5.35 909.45 4102.913889 0.45 4123.3 3933.85 890 892.7466 MARKET R X 1.480658 -0.55678 -1.89089 0.4 4124.25 985.808093 .15 3942.95 883.310009 2.569333 0.85 4082.474883 2.15 4089.58061 -2.50279 2.4 994.45 955.95 970 941.2 975 964.4 4007.45 4075.3 3988.258427 -1.2 4109.333311 0.264045 6.482521 0.754953 0.65 4066.38205 1.57733 -0.95 3850.20686 0.689953 0.85 964.05 4147.3884 7.25 971.31306 -1.8 3990.6 4102.55 4052.15 3983.995712 3.9 4092.4 4090.2 912.124046 -0.16685 0.55077 2.338954 2.470704 7.05 960 986.793681 0.789881 -2.97938 -7.830634 -0.4 3910.57296 1.7 4080.99785 1.95598 -0.328283 1.4.1 DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 BETA .26586 -0.849475 0.0672 2.062173 0.54349 0.25 4007.45 4052.1.5443sa TABLE 4 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURN COMPARISION 8 4 2 Y 0 X -2 -4 DATE GRAPH 4 50 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 -6 1/2 RETURN 6 X^2 1.05 4126 4090.630421 -0.633901 -0.40229 0.3 3852.16917 -1.7 sum SD 2.13001 -1.5 4084.5 890 910.8 957.1 917 906.72969 -1.09744 -2.951434 variance X*Y 0.262295 -2.28624 0.75 894.

85 4106.07108 1.4 -0.881186 14.13597 1.45 987 969.4 1.735884 1.368741 -1.847502 4198.35 -1.05 3893.8 829.Standard deviation (total risk associated with stock) is 2.15 4215.15814 TABLE 5 MARKET X 1.5 -1.00542 1.15 988 999.9 944.086682 145.3 -2.430194 -0.4 920 949.24574 -0.3 -2.92524 4046.257671 -0.478112 3.529435 -0.10471 7.239842 0.214739 -1.3888 SUM -15.1355 SD 2.5 4187.95 -5.62403 variance X*Y 0.57868 4107.9 932.6 952.07843 -0.07244 3948.9 0.4 980. The above graph revels that the average stock return is well above the market return.7 999 996.64582 0.8 907 913.385025 0. DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 STOCK PRICE OPEN CLOSE 951 952.8 4146.2 -1.56266 4193.85 957.39021 -0.2 3.280301 0.41895 4069.55 2.8 904 904 875.62204 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 4 0 Y -2 X -4 DATE GRAPH 5 51 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 -6 2/1 RETURNS 2 .44656 0.657567 X^2 1.184211 4223.041296 0. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.1 -1.95.4 4137.46945 92.278549 9.6343 -0.456262 0.35 914.076334 2.1 4044.033222 0.217391 4149.00628 3939.15 960 955.79331 4096.07895 4.55 -0.2 4224.045843 0.55 959.364004 0.70893 -0.073621 -1.476728 0.65 4040 -2.932673 0.093788 0.55 4195.2 954.2 985 969.1 3942 -1.42708 4044.746 where as the beta value is 0.25 4164.31753 1.5 BETA 1.620504 -0.9 961 983.00038 0.80387 -9.918942 4164.26661 -1.8 849.4 3745.33903 4216.57268 STOCK R SENSEX PRICE OPEN CLOSE Y 4083.002958 6.28529 4187.38284 -2.3 974 946.304891 4232 4223.95 -1.9 -3.902755 1.162986 4140.85474 -3.85421 4046 3938.912239 7.25 2.60333 0.15 4096.48974 0.243845 7.65 946.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.8 949.11947 3893.2 4183.1 966.37156 -3.15 990.194691 0.24065 0.41505 1.054389 2.9 959.20321 -0.730583 9.2 4058.946907 13.6648 4.9 4047.2 0.

00546 2.22738 -4.1 3798.03567 -0.427746 0.23211 -0. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 STOCK PRICE CLOS E OPEN 840 855.7 810 828 822.40498 -1.02522 2.8 829.8463 1.Standard deviation (total risk associated with stock) is 2.807881 2.40056 -1.65821 -1.55 3641.863059 2.17534 5.65 853.29118 2.12594 -1.35 899.65 3718 3734.35 STOCK RETURN SENSEX PRICE OPEN 3745.15 3788.84453 X 1.757009 0.728838 -2.9 882.32934 -1.850782 -1. the systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.7 866.85 3717.6 3608.3 3680.85 3761.37809 -0.210383 1.9 822.45 3735.745165 0.164008 1.55 SUM Y 1.55 3627.403314 X*Y 3.893121 11.3374 -23.35 3611.75 3759.75 3863.036138 0.50032 5.109328 0.6 899 875.8 824 828 870.55 3678.4115 0.35 850 842.15 3661.5 3655.6595 SD 3.25 877.5 3876.267733 2.6 870 891.2701 variance 10.5 3577.782764 14.898109 13.4 3644.279062 1.45 3818.290497 -21.815762 0.073583 0.482759 -2.716232 3.753137 5.6 865 868.5 821.65 858.59177 -0.468705 1.1 3821.945051 -3.871902 0.55 845 847.25 3761.96123 16.1 3643.69355 0.6203 BETA TABLE 6 52 X^2 3.086422 4.6 849.20243 4.55 3875.10198 3.85 859.9 3861.55089 9.504017 0.49716 0.95255 -0.55 970.268432 8.343195 -6.48287 6.9 3697.688789 8.4 835 823.26825 1.5762 -1.4 3811.55 833.5437 -0.65 3626.5 828.94769 3.74487 5.83529 -3.001272 0.9 855.7 871.95 3761.461338 0.959224 -0.97386 0.16 where as the beta value is 1.25 3768.197335 0.184284 -9.96844 0.138889 -7.7 3764.1 857.047413 1.194484 -0.705286 -1.2 3726.57 .775917 .827381 -0.438017 -0.65 3726.45 855.756822 -2.85 MARKET RETURN CLOSE 3811.9 3639.6 3770.306439 -1.212833 0.72915 1.219685 3.35 3697.860519 15.35874 0.918167 1.50966 1.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.16565 0.6 3764.65 831 863 871.3 803.75 3576.05 3819. the average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return .

The fluctuation in this stock mainly because of inflationary trend in the economy because of high inflation rate RBI forced to increase the CRR and interest rate that would be the reason for the down ward trend of this stock. the average stock return is below the market return so an investor must take an extra care while investing in this stock . In the case of icici bank the stock is more volatile and the systematic risk associated with this stock is very high since the beta value on an average greater than 1 its above the standard.62. The above graph revels that the average stock return is below the market return. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. 53 . In the month of March this stock is more fluctuating as a comparison to the market price.04 where as the beta value is 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 8 6 4 2 0 -2 -4 -6 -8 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH 6 Standard deviation (total risk associated with stock) is 2.

70 3983.4596 MARKET RETURN X 1.65 4066.84454 -1.4 8-Jan-07 1.220.80 4090.85 4082.521046 2.136.00 1.3 SBI STOCK PRICE NIFTY PRICE DATE OPEN CLOSE OPEN CLOSE 2-Jan-07 1.00 4075.05 4102.5 17-Jan-07 1.85 4007.172.188 -2.16917 -1.042791 0.1 24-Jan-07 1.197866 0.270.25 4007.7 4024.99785 1.282.70885 -0.7 4080.407965 -0.808093 .45 31-Jan-07 1.55678 -1.913889 0.951434 X*Y 0.45 3944.68488 -2.4.85 1.60159 0.30 4126 4090.333311 0.4 4124.24935 -0.9 25-Jan-07 1.241.3 11-Jan-07 1.45 4092.460413 -1.250.80 1.138859 1.03239 -3.484662 2.45 15-Jan-07 1.294651 0.244698 -4.250.076414 0.55 4052.05 19-Jan-07 1.3 3988.175.140.15 4148.00 1.780065 1.328283 1.291222 0.7 SUM STOCK RETURN Y 0.166435 0.05 4-Jan-07 1.55077 2.12776 0.8107 -3.6 4089.00 1.8 5-Jan-07 1.25273 -0.95 3850.10 3990.05 1.55 4066.25 4052.218.45 3852.9 4076.05 4147.051683 4.00 4027.174.229.793681 0.224.55 4089.85 4078.05 1.7 29-Jan-07 1.037504 0.849475 0.689953 0.00 1.359954 -0.04226 3.249799 -2.45 18-Jan-07 1.00 1.176.500475 14.174.213974 5.20686 0.284 1.90 3933.482521 0.64224 1.213.25 12-Jan-07 1.00 1.830634 -0.102106 -2.45 23-Jan-07 1.032389 -0.3 3933.314212 -0.203255 4.225.00 1.57296 1.253.098729 0.338954 2.85456 -21.65084 0.40 3910.4 16-Jan-07 1.190.174.4 10-Jan-07 1.582134 0.1.995712 3.00 1.235.00 1.243.255.57733 -0.00 1.95474 0.147.45 4123.12598 0.754953 0.470704 7.630421 -0.55 3966.39743 0.73542 0.569333 0.310009 2.3 3911.00 1.00 1.00 1.55 4084.264.877 VAR 5.15 3983.89089 0.222.86888 0.219.162.0732 0.25 1.168973 3.028617 1.4 3-Jan-07 1.4 9-Jan-07 1.171.225.248.66073 BETA SD 2.83135 0.226.6 4102.06024 0.93652 -0.145.162.1631 -0.569884 TABLE 7 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 6 2 Y -4 -6 DATE GRAPH 7 54 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 -2 1/4 0 1/2 RETURNS 4 X X^2 1.15 3942.537767 -4.244.156.062173 0.15 22-Jan-07 1.219.209.4049 5.2 4109.850581 -41.00 1.222.898043 -0.95598 -0.25 1.

57 where as the beta value is 1.665162 6.099.00 1.8 4146.00 4083.4 4137.119933 1.07108 22-Feb-07 1.026525 TABLE 8 GRAHHICAL REPRESENTATON OF STOCK AND MARKET STOCK AND MARKET RETURNS COMPARISION 8 6 4 2 0 -2 -4 -6 -8 Y DATE GRAPH 8 55 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS BETA 7.43891 -1.239842 7-Feb-07 1.00038 26-Feb-07 1.199.79203 SD 3.00 1.088.65 4040 -2.00 1.15087 -1.00 1.181.002596 0.9 -0.134028 0.857741 -0.230342 sum .085048 2.46945 -6.31753 5.8073 -0.16972 -9.00 1.2 3.45005 0.110.041.107.25 0.197.385025 8-Feb-07 1.128.2 4224.37156 2.132.4 3745.9 -2.07843 4.00275 -1.280301 6-Feb-07 1.00 1.35 1.932673 21-Feb-07 1.4 -0.4 0.345458 0.75 4164.6 1.9 4047.90301 7.85474 0.70539 -0.091.25 4164.2 4183.746898 1.206.15031 0.20 4046 3938.3 0.132.90 4107.05 4198.045843 -2.203.1 -4.00 1.719626 0.85 3893.70 4187.55 1.26661 -0.14783 0.40 3939.205. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.00 1.60 4046.195.66 .2 0.80387 -27.363475 0.38284 3.105.00 1.070.620504 0.52653 -0.368741 0.56379 -0.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.15 4215.95 -6.39021 2.05 4096.912239 23-Feb-07 1.093788 5-Feb-07 1.09294 9.00 1.00 1.00 1.79424 1.135.3 -1.50 4216.173.183.476728 13-Feb-07 1.92234 1.10 4149.004184 0.735884 2-Feb-07 1.95 1.150.88601 1.078.5033 14.054389 -0.372621 1.30 4044.2 4058.05 4193.215.487069 0.25 4232 4223.00542 27-Feb-07 1.1 4044.105.2256 0.15 3948.004418 VAR 9.730583 12-Feb-07 1.20321 -0.55 -0.881186 28-Feb-07 971.40834 47.2 1.058.122.62403 10.456262 2.65 1.195.182.05 3893.32955 -3.002958 15-Feb-07 1.70 1.76652 -2.195.48974 0.205.85 4106.05 4140.55 0.158.102.789966 0. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return STOCK PRICE DATE OPEN STOCK RETURN NIFTY PRICE CLOSE OPEN CLOSE MARKET RETURN Y X X*Y X^2 1-Feb-07 1.10 1.55 4195.073621 0.033222 19-Feb-07 1.041296 9-Feb-07 1.94767 0.199.1266 0.5 -2.069.95 -2.5 4187.364004 14-Feb-07 1.990153 1.169704 -3.1 3942 1.60333 0.40 4069.529435 0.196.15 4096.00 1.64582 17.Standard deviation (total risk associated with stock) is 2.65 4223.13597 20-Feb-07 1.1743 0.176.

164008 1.0961 -3.35874 0.043014 0.1 30-Mar-07 990.135145 4.it shows that diversification of the portfolio of stocks would help the investor to eliminate considerable part of risk associated with this stock.75 3761.37809 -0.001272 0. DATE STOCK PRICE NIFTY PRICE OPEN OPEN CLOSE CLOSE 1-Mar-07 1.36673 1.02522 2.1 15-Mar-07 955 922.1 994.042.45 3788.94769 3.1 3644.5 6-Mar-07 999 988.85 8-Mar-07 989 999.709368 X^2 3.787288 4.25 -3.705286 -1.00 1.45 3734.222614 0.25 3761.55 22-Mar-07 992 1.6 16-Mar-07 925 913.79409 SUM SD STOCK RETURN Y 1.004where as the beta value is 0.004.2 2-Mar-07 1. In the month of March this stock is more fluctuating as a comparison to the market price and the average return is much below the market return.8463 1.3 3627.85 3821.4777 14.4 3735.95 3697.35 3608.504017 0.95 28-Mar-07 1.90 3811.75 5-Mar-07 999 962.239324 0.194484 -0.2 3717.6 21-Mar-07 955 982. The above graph revels that the average stock return is below the market return.9 20-Mar-07 930 952.305496 1.Standard deviation (total risk associated with stock) is 3.858893 2.65 3745.90821 -3.4115 0.036138 0.16565 0.50966 1.75435 -1.43935 -12.8 926.55 3726.64865 -1.815762 0.026.00 1.35 3697.65 7-Mar-07 998 964.945051 -3.16974.20 3876.55 14-Mar-07 960 948 3768.00 1.055.309981 -2.279062 1.219685 3.55 3626.030.15675 0.756822 -2.301403 6.55 19-Mar-07 924.775917 .013.74487 5.12594 -1.770161 -0.926702 3.9 3643.68663 -2.073583 0.85 3718 12-Mar-07 990 974.268432 8.403226 2.212833 0.863059 2.148261 -0.9 23-Mar-07 1.468705 1.00 1.029.041456 -1.40498 -1.807881 2.65 9-Mar-07 1.6 3639.757009 0.05 3577.1 29-Mar-07 974 985.10 982.65 3863.5 3875.3441 1.35 3680.45 3819. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.22738 -4.59596 0.403314 VAR X*Y 2.4 3811.65 3759.85461 1.25 3770.58738 -3.126405 5.196099 0.959224 -0.15 3655.40537 3.15 3798.898109 13.5 3576.291127 11.267733 2.379184 -30.3 3678.65 3761.143003 -1.00 973.183824 2.20243 4.006.96123 16.72915 1.871902 0.44503 -1.65 3818.5297 2.23243 0.03567 -0.122871 1.40 3764.190606 3.73628 0.893121 11.716232 3.21571 1.7 3764.034.170108 TABLE 9 56 MARKET RETURN X 1.4 3661.75 3861.4 3641.461338 0.035.84297 -1.5 3611.55 BETA 0.6 13-Mar-07 979 980.001.086422 4.05 26-Mar-07 1.65 3726.1128 4.

794.it shows that diversification of the portfolio of stocks would help the investor to eliminate considerable part of risk associated with this stock.403where as the beta value is 0.so the investment option would be how effectively we tackle our interest rate risk and political risk by proper diversification of the portfolio . 57 . Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS COMPARISION OF STOCK AND MARKET RETURNS 6 RETURNS 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH 9 Standard deviation (total risk associated with stock) is 2. In the month of March this stock is more fluctuating as a comparison to the market price and the average return is much below the market return. The above graph revels that the average stock return is below the market return. Usually the beginning o f the financial year a bad month for the financial sector stocks mainly because of the impact of the budget and this year due to inflationary pressure RBI force to rise CRR level and the interest rate it had an negative impact on the profitability of the banks this leads the collapse of banking stocks .here the stock price is more fluctuating than the market price .

310009 2.2238 -19.4.39743 0.19 -1.1 4066.4 4124.35 819 815.7486 -0.3695 -0.85 4078.45 4075.25 3944.05 4126 4090.869 0.207 0.4794 -0.482521 0.15 3942.3 3933.65 4066.7354 0.7 4024.0246 -1.098729 0.8 816 815.95 794 791.8835 0.849475 0.95 3850.076414 0.9702 -2.995712 25.55 4052.25 773 762.0921 0.45 4102.1094 -2.891 0.0783 -1.7 4080.1 828.32828 1.9497 4.05 812.45 812.7 4148.15 3983.4 4007.169 -1.05 4027.408 -0.1 DR.9 4076.2.4 3933.333311 0.3 809.956 -0.9514 VAR X*Y -0.3 3852.754953 0.3614 0.5 810.8885 -0.4 3910.7304 X^2 1.2033 -1.3003 -2.4 812 812.76932 TABLE 10 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS RETURNS STOCK AND MARKET RETURNS COMPARISION Y DATE GRAPH 10 58 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 1/2 X .6683 -7.3995 -0.5 4084.8 759.306 -0.7057 -2.253 -0.1 830 810.0797 -0.05 BETA 0.9314 MARKET RETURN X 1.36 -0.6 4089.0375 0.3 3911.5 815.3245 0.6 4102.9 792 809.21 6.2191 16.85 4082.8306 -0.913889 0.6304 -0.05 4147.9 766 763.4 3983.249 -0.042791 0.1071 -0.9 4092.4 4090.45 4123.9 811.0269 -0.7 768 751.0165 -0.72526 NIFTY PRICE OPEN CLOSE 3966.2178 2.573 1.470704 7.95 743.2645 2.731 3.15 798 774.7 SUM SD STOCK RETURN Y -0.577 -0.REDDYS LAB DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 813.2 4109.8286 0.2 PHARMASUICAL INDUSTRY 4.698 0.7986 0.45 4052.2 812 798.5849 -0.6732 -0.689953 0.998 1.4657 1.15 4089.569333 0.4 805.062173 0.166435 0.028617 1.0309 0.05 830 771.551 2.8 808.793681 0.3066 -0.4049 5.557 -1.662 1.6186 6.25 4007.3142 -0.9 803.9 807.3907 -0.8 817 811.339 2.4083 1.3 3988.8 3990.

2 X -0.1611 X*Y 1.3 -3.239842 7-Feb-07 751 745.6021 -3.58 1.6066 1.078 9. STOCK PRICE DATE OPEN 1-Feb-07 STOCK RETURN NIFTY PRICE CLOSE OPEN CLOSE 4083.203 0. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.15 4215.7656 -0. When we camper it with the total risk.6724 0.033222 742 730.576 -9.5541 0.55 4195.9 4044.07108 22-Feb-07 730 706.75 738.385025 8-Feb-07 746.0685 -0.85 4149.65 4040 -3.4 3745.9327 0.6205 -0.85 4106.2 4187.05 3893.55673 SD 1.1 3942 -2.2 4183.95 4198.2 4058.95 -4.55 4232 4223.25 719.35 -0.2 4224.3423 1.4 4046.65 681.932673 21-Feb-07 730 729.881186 28-Feb-07 681 676.2 4164.93where as the beta value is 0.65 4140.9 -0.0131 0.00038 26-Feb-07 706 689.3 4193.Standard deviation (total risk associated with stock) is 1.8 1.1 1.95 -0.46945 -15.55 4046 3938.5 750.48 1.725.1741 0.002958 15-Feb-07 19Feb 07 724.65 4223.735884 2-Feb-07 750 745.5 4107. The above graph revels that the average stock return is well above the market return and frequent fluctuation in price put the stock under the scanner.5027 0.3687 -0.0736 -0.3175 -0.25 -0.5091 0.1 4044.5 -0.0544 0.498 -2.9 0.624 31.804 2.3834 9.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.6295 VAR 2.912239 23-Feb-07 713.3654 0.383 4.35 4096.901 7.093788 5-Feb-07 754.2 1.3087 0.4 MARKET RETURN Y 4137.471 -1.855 1.0266 -0.372 -0.6764 -0.4 -0.6553 TABLE 11 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 11 59 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS BETA .267 0.25 4069.5294 -0.6 741.4 -1.2462 -1.9 4047.6261 6.25 4164.39 0.3 4216.8 4146.3 3939.4172 0.783 47.8 731.7 750.5 4187.0183 0.15 4096.2 -0.2397 -1.476728 13-Feb-07 725 726.25 3948.646 1.13597 20-Feb-07 731 729.2122 X^2 745 743.041296 9-Feb-07 744.364004 14-Feb-07 706.104 0.1051 0.00542 27-Feb-07 690 693.9 3893.0481 -3.49 0.0458 -0.730583 12-Feb-07 748 725.8834 2.1375 0.79203 SUM 0.1724 -0.3 -0.646 11.603 -0.583 0.4563 4.55 -1.55 0.280301 6-Feb-07 750.2901 14.

227 -4.1945 -0.55 679.051 -2.6879 2.212833 0.51 1.65 3661.8069 -0.095 -0.815762 0.95 3761.2313 0.15 706.4115 0.1 601 617.267733 2.5349 2.9592 -0.279062 1.898109 13.4687 1.9 3861.1594 -0.75 3726.2031 1.5 3577.4 3641.8079 2.4117 -1.1633 -1.716232 -1.2 682 686.5 3876.7454 -1.05 3819.3231 X^2 3.Standard deviation (total risk associated with stock) is 1.8909 0.75 3863.0373 15.9 660 678 658.9244 8.2 3811.757009 0.219685 3.036 -0.001272 0.6 3764.5 3576.1 3798.7568 -2.65 3761.9 3697.4033 VAR -3.025 2.7 3764.75 655 660.4 690 690 689 654.1923 -0.25 641 668.1515 0.086422 4.85 STOCK RETURN Y -1.268432 8.3818 MARKET RETURN X 1.5 630 622.4613 0.45 681 683.7343 -11.25 682.9 692 714.4689 -1. In the month of February this stock fluctuating along with the market .073583 0.298 -2.55 .35 3608.1194 -8.948 3.8478 -3.6641 0.1705 677.25 NIFTY PRICE OPEN CLOSE 3745.7786 2.846 X*Y -2.25 3761.3 3680.55 3611.15 3655.75 3759.55 635 635.1 3644.0878 -0.74487 79.25 3770.925 3.85 3718 3717.62 where as the beta value is 0.5652 3678.166 0.5362 -0.893121 11.8719 0.2172 1.4 679.0954 1.1711 1.35874 0.405 -1.4 660 661 645 648.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.5 -0.3 682.96123 16.1825 0.126 -1.65 3726.9942 5.20243 4.504017 0.85 3627.45 3734.1 3821.8536 3.35 3697.45 655 672.9451 -3.431 0.5868 2.9269 -2.59 4.15 692.72915 1.55 3626. The above graph revels that the average stock return is below the market return.3337 0.55 SUM SD TABLE 12 60 .7054 -0.6 3735.0394 4.7053 -1.9 3643.here the non diversifiable risk is very less so proper diversification of the portfolio ensure maximum return with minimum investment DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 670 661.15 3788.1432 -1.55 3768.4 3811.6 3639.45 3818.6609 -12.5 728.5951 -0.8631 2.1178 2.6 689 683 682.0412 -0.164008 1.0361 0.378 -0.55 3875. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.

20 and the beta is -0. The average beta is less than one that means this stock is less volatile than the market.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 8 RETURNS 6 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH 12 Total risk associated with this stock is 2.17 here it means all the risk associated with this stock can be eliminated with proper diversification of the portfolio in this particular month the return from this stock much above the market return but some trading day the price of the stock is crumbling down may be because of the high selling trend for short term profile The overall performance of this stock is promising the risk associated with this stock comparatively less. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk 61 . Investor can hold the stock for a long time.

6 25-Jan-07 402.9 -1.1 4007.0781 -0.2844 4109.6067 -0.4049 5.36 -0.4 -0.25 3-Jan-07 397.699 4024.8081 4078.2377 4052.05 397.7354 0.076414 0.573 1.0509 4090.1932 3988.869 0.253 -0.9 416.551 2.9 18-Jan-07 436 430.3 4084.1626 1.6505 3933.2 4027.5 411.5 400.15 8-Jan-07 412 418.65 4090.42651 X*Y 2.5 4126 22-Jan-07 417 404.8306 -0.6506 X^2 1.569333 0.95 11-Jan-07 411.9514 VAR STOCK RETURN Y 2.470704 7.1152 -2.1847 -0.45 1.4.5 0.3142 -0.05 -4.2.793681 0.998 1.8 3933.65 24-Jan-07 409.2 19-Jan-07 432 414.8 4066.15 3966.7 4-Jan-07 414 413.0658 SD 1.2173 -1.689953 0.956 -0.9106 TABLE 13 NIFTY PRICE OPEN CLOSE 1/14 DATE STOCK PRICE OPEN CLOSE .1106 -1.6304 -0.4 -1.1814 4147.333311 0.3587 2.5349 4076.042791 0.169 -1.4 4052.3 5-Jan-07 411 413.25 1.4 3.557 -1.0743 2.25 3944.1245 4089.4 3852.45 0.0844 4007.4 4148.339 2.7 17-Jan-07 430 432.098729 0.891 0.577 -0.4 31-Jan-07 404 408.6 4124.45 -2.9856 4102.0375 0.5094 0.328283 1.028617 1.0925 3942.5091 0.849475 0.85 16-Jan-07 431 429.1 -2.4 -1.7 SUM -4.0669 3.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 13 62 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS BETA MARKET RETURN X 1.05 -0.39743 0.95 430.5553 3.2252 4082.3 9-Jan-07 425 416.55 15-Jan-07 426.8 3983.95 4123.2 RANBAXY 2-Jan-07 391 399.062173 0.15 12-Jan-07 416.55 4089.3132 4080.1 421.7 0.3856 0.4 1.3 1.4 412.513 3.5198 -0.8 0.0676 1.6813 3983.995712 25.15 -2.6 23-Jan-07 408 399.9294 3911.482521 0.310009 2.8669 -1.4 4075.05 29-Jan-07 400 402.913889 0.45 -1.408 -0.207 0.45 4102.754953 0.3 10-Jan-07 417.166435 0.521 3850.85 0.249 -0.9381 1.2226 10.3464 -1.8 3990.0956 4066.15 3910.3 4092.

2 413 413. The above graph revels that the average stock return is well above the market return DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 STOCK PRICE OPEN CLOSE 409 411.2753 0.55 4164.00542 1.05 424.1 351.6205 -0.932673 0.7915 0.55 365 351.0544 2.1 4044.9 4198.0127 0.0458 0.25 4164.7 414.35 354.6 409.6144 7.7168 0.2 4096.4 3745.4 4137.4805 -4.46945 47.7 420.404 SD MARKET RETURN X 1.3687 -1.85 BETA 0.3175 1.078 -0.5 4193.13597 1.203 -0.15 409.0458 1.1691 1.1 3942 3948.95 and the beta is 0.7215 -1.9 4047.041296 0.1111 2.0736 -1.0121 0.8474 -3.0797 NIFTY PRICE OPEN CLOSE 4083.4 4223.75 413.79203 .372 -3.912239 7.1 4046.25 4232 4223.4563 0.The total risk (standard deviation) associated with the stock is 1.7087 0.5 382.3 421.4 4187.95 3939.65 4040 4046 3938.9279 5.730583 9.2 4140.3539 0.1069 VAR 4.55 4195.15 4215.9 420.814 -0.826 -5.5294 -0.364004 0.8 4146.280301 0.093788 0.239842 0.6318 -0.2135 -19.423It shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.3 4069.855 -3.7 383 367.476728 0.5 408 415.35 396 391.2 4149.5867 1.383 -2.2252 -1.4097 -3.05 3893.49 0.6158 6.95 424.4714 3.5337 -0.624 X*Y 0.0993 -12.5 4187.5379 0.7273 -3.07108 1.385025 0.55 4044.6 385 395.95 4107.603 0.9 3893.00038 0.804 -9.033222 0.1 411.881186 14.6 342 337.267 -1.4067 2.85 4106.45 367 356.2 419.3121 -0.5 396.3 SUM STOCK RETURN Y 0.0895 -0.0759 0.2 4183.4389 TABLE 14 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 63 X^2 1.15 4096.7397 -0.39 -0.1551 -0.735884 1.2901 -1.0601 -2.05 414 414.2169 -1.646 0. There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.45 415 393.05 416.2 4058.002958 6.9683 4.2 4224.706 -1. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.35 4216.

405 -1.5034 0.271 -1.7053 -1.95 311.8903 4.90549 SUM SD TABLE 15 64 STOCK RETUR Y -0.75 3717.565 .1 15-Mar-07 315 315 3644.7162 3.5807 5.0864 4.4429 16.3802 -1.8231 4.5 3576.05 3788.55 3876.3 3678.378 -0.2957 -0.25 3611.85 8-Mar-07 312 328.411 0.15 3759.036 -0.9 23-Mar-07 340 331.75 320.2 2-Mar-07 345 347.2 333.5361 0 1.6667 -7.6 13-Mar-07 323.35 3764.55 3626.45 3627.5978 -0.2723 0.8719 0.2992 -1.5040 0.6 16-Mar-07 315.17 here it means all the risk associated with this stock can be eliminated with proper diversification of the portfolio in this particular month the return from this stock much above the market return but some trading day the price of the stock is crumbling down may be because of the high selling trend for short term profit.45 3819.2196 3.2 3639.5 6-Mar-07 325 322.227 -4.0065 0 0.4033 VAR X*Y -0.2 3818.75 5-Mar-07 345.35 3608.8981 13.25 330.9451 -3.25 3661.5 316.5 3875.025 2.7 3764.4853 0 -0.205 2.15 3655.7568 -2.4613 0.9421 -1.STOCK AND MARKET RETURNS COMPARISION Y 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS 4 3 2 1 0 -1 -2 -3 -4 -5 -6 DATE GRAPH 14 Total risk associated with this stock is 2.5 312.25 3761.2724 -2.65 3726.2677 2.9612 16.95 3697.55 BETA 0.2279 X^2 3.3428 0 -1.7868 -15.3587 0.7447 79.7 3726.4687 1.0012 0.0735 0.95 28-Mar-07 334.3 3811.9 20-Mar-07 314 314 3680.948 3.7570 0.2266 -1.8308 -4.178 -0.5421 70.8079 2. DATE 1-Mar-07 STOCK PRICE OPEN CLOSE NIFTY PRICE OPEN CLOSE 344 342.55 14-Mar-07 316.3634 0.20 and the beta is -0.5 320.05 3761.056 7.05 26-Mar-07 335 335 3863.55 22-Mar-07 318.6 21-Mar-07 319.4719 -2.7428 0 -1.2790 1.126 -1.729 1.8157 0.536 2.15 3798.202 4.1640 1.4849 28.7745 -0.2684 8.166 0.9592 -0.85 3718 12-Mar-07 328 323.8931 11.9 336.75 3745.7 3735.51 1.4517 -1.6885 MARKE RETURN X 1.25 3768.7981 5.45 3734.3968 0 -0.846 1.1 30-Mar-07 333 327.4 3811.75 3761.55 19-Mar-07 315 316.2128 0.65 9-Mar-07 334 326.3 3577.85 3821.65 7-Mar-07 322 307.9 3643.8631 2.35 3697.1 29-Mar-07 334.193 1.1945 -0.3411 19.75 3861.6384 -1.4 3641.25 3770.0361 0.893 -1.

91 .69where as the beta value is 0. The average beta is less than one that means this stock is less volatile than the market. Investor can hold the stock for a long time. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk 65 . The above graph revels that the average stock return is below the market return. In the month of February this stock fluctuating along with the market .here the non diversifiable risk is very less so proper diversification of the portfolio ensure maximum return with minimum investment The overall performance of this stock is promising the risk associated with this stock comparatively less.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 8 6 4 2 0 -2 -4 -6 -8 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH 15 Standard deviation (total risk associated with stock) is 2.

047.7 4080.1 4066.3 3911.4 4124.95 1.249 -0.5939 5.4 4007.9405 1.7354 0.3922 -1.076414 0.557 -1.45 4052.031.05 4027.65 985 979.45 -1.95 1.55 987.7 sum SD MARK ET RETU RN X 1.048.482521 0.5944 -0.85 1.8246 0.042791 0.0196 1.00 1.45 4123.2 4109.00 1.1677 0.459 -0.059.40 1.1394 2.028617 1.3 SUN PHARMASUICAL 0.3 3852.2841 -0.956 -0.9 4092.1015 0.577 -0.021.4162 0.80 1.174 0.0375 0.61224 NIFTY PRICE OPEN CLOSE 3966.047.00 1.5 4084.062173 0.95 3850.034.436 2.7891 0.328283 1.020.9141 0.8306 -0.05 1.036.85 4082.35 1.85 1.25 3944.4 3910.333311 0.39743 0.689953 0.00 1.030.166435 0.8878 -0.65 1.6 4089.55 RETURNS DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOC K RETU RN Y 0.021.92 4.8152 0.2848 0.9514 VAR X*Y 0.339 2.849475 0.0704 -1.050.6652 2.569333 0.4 3983.6242 0.921 12.80 1.85 4078.4049 5.408 -0.998 1.4 4090.15 962.75 990.3 3933.00 1.85 1.05 987.6304 -0.15 4089.4.7 4024.4 3933.4304 -0.039.033.40 1.1756 0.995712 25.9 980 988.8 3990.051.1 985 980.95 1.25 4007.3168 1.3142 -0.044.310009 2.65 4066.869 0.9078 0.413 0.059.793681 0.079.5241 -0.15 3983.05 4147.3564 0.6401 -0.4135 X^2 1.20 1.253 -0.00 1.6 4102.045.35 1.754953 0.05 4126 4090.9 4076.551 2.00 1.2.030.1121 0.55 4052.45 4102.207 0.1008 .9354 2.70 1.169 -1.45 4075.1 2.9 985.00 1.020.5 991.573 1.80 1.36 -0.027.76932 TABLE 16 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 6 4 2 Y 0 X -2 -4 DATE GRAPH 16 66 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 -6 1/2 BETA STOCK PRICE OPEN CLOSE 983.3 3988.4948 -0.1322 -2.013.3094 -3.020.470704 7.298 -0.15 3942.7 4148.098729 0.913889 0.3473 -5.891 0.7 992 985.030.9334 15.

35 4044.4 4083.015.00 1.2863 5.035.020.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.1 15-Feb-07 1.6205 -0.0387 X^2 1.1 4044.040.524 4.4 3745.5012 -0.7996 -1.15 1.25 8-Feb-07 1.6752 10.85 4193.95 4107.5294 -0.00 1.932673 0.00038 0.043.79203 .3687 -1.95 26-Feb-07 979.0544 2.020.45 3939.00542 1. The above graph revels that the average stock return is below the market return.85 4106.1565 sum 0.038.7034 2.624 VAR X*Y 1.804 -9. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.65 953.8077 2.0192 2.00 4046.203 -0.4 4137.2 4058.052.35 6-Feb-07 1.80 1.6635 -0.267 -1.15 4215.40 4198.80 1.9586 -1.2 4224.65 4216.25 4164.027.3175 1.39 -0.372 -3.3 13-Feb-07 998 1.75786 SD TABLE 17 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 17 67 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS BETA STOCK RETURN Y 1.35 4187.0739 -4.016.20 1.Standard deviation (total risk associated with stock) is 2.15 4096.0277 0.1 3942 27-Feb-07 972.029.033222 0.052.078 -0.70 4164.280301 0.855 -3.1101 0.0458 0.612.40 4232 4223.2 4183.3878 -0.4 9-Feb-07 1.80 4140.2944 1.017.735884 1.8 4146.037.364004 0.9053 1.4718 0.031.1053 1.9 7-Feb-07 1.65 4040 23-Feb-07 1.13597 1.0736 -1.55 20-Feb-07 1.75 4096.239842 0.00 1.75 1.912239 7.3687 -1.90 1.00 1.10 where as the beta value is 0.9 4047.70 2-Feb-07 1.1383 -5.9617 1.0533 -0.9198 2.49 0.911 0.047.041296 0.7099 -3.1238 0.05 3893.2 19-Feb-07 1.026.383 -2.9 982.646 0.4228 1.002958 6.069.6 3948.25 4149.385025 0.30 1.1611 3.2 4187.3 3893.048.004.3 MARKE T RETURN X 1.07108 1.034.05 1.7984 -0.4219 2.3299 35.2602 -1.7695 1.044.0808 -1.5 12-Feb-07 1.012.104 -4.5 5-Feb-07 1.6863 4.603 0.881186 14.55 4195.1116 0.5528 0.476728 0.4464 0.730583 9.016.4563 0.2 22-Feb-07 1.50 4223.045.035.15 4046 3938.05 1.46945 47.00 4069.034.95 21-Feb-07 1.029.9 28-Feb-07 940 929.55 14-Feb-07 991 1.05 974. In the month of January this stock is more fluctuating as a comparison to the market price STOCK PRICE OPEN CLOSE DATE NIFTY PRICE OPEN CLOSE 1-Feb-07 1.0052 0.047.093788 0.

358 0.00 1.00 991.75 3861.3205 9.85 8-Mar-07 967.25 3761.012.030.00 1.4665 2.35 3608.56 .1 30-Mar-07 1.85 3821.019.002.9617 -0.55 BETA 0.3627 -1.5929 -0.6 13-Mar-07 1.1469 1.04where as the beta value is 0.1 29-Mar-07 1.8631 X*Y 6.9592 -0.55 22-Mar-07 1.4811 -0.90 3735.7053 -1.9 3661. The above graph revels that the average stock return is below the market return.006.018.72 1.95 3611.51 1.014.4602 0.45 3734.029.378 -0.1 3680.4 3811.2 2-Mar-07 950 969.45 3788.3 3818.9691 1.35 3697.3 3678.126 -1.0361 0.8079 2.893 11.85 3718 12-Mar-07 986 1.6876 0.7313 -4.80 1.5 6-Mar-07 941 948 3577.961 16.466 -2.4033 VAR 23.227 -4.00 1.40 3764.65 3726.9451 -3.1945 -0.6325 -0.7376 0.8315 2.7568 -2.25 3876.166 0.1 15-Mar-07 1.056.2611 -0.3446 -1.016.5 3576.25 3770.9744 2.45 1.086 4.4361 X^2 3.6898 -0.004.76.898 13.8719 0.10 3768.80 1.405 -1.75 3761.6942 -0.9 23-Mar-07 1.948 3.65 9-Mar-07 975 984.05 1.4712 -0.85 966.017.20 4.2613 79.5 3875.2489 -0.4687 1.716 3.025 2.7439 0.75 5-Mar-07 949 942 3726.4613 0.41 0.014.0249 0.504 0.011.028.00 1.55 19-Mar-07 1.Standard deviation (total risk associated with stock) is 2.2399 0.1358 1.2753 0.40 3639.6506 4.073 0.55 3626.90 3863.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.45 3697.279 1.6672 -1.744 3.846 1.15 3798.541 3.757 0.50 3717. In the month of February this stock is more fluctuating as a comparison to the market price DATE STOCK PRICE OPEN CLOSE NIFTY PRICE OPEN CLOSE 1-Mar-07 920 955.00 1.8059 2.9 3643.7 3764.011.6257 -0.9813 MARKE RETURN X 1.268 8.95 1.6 16-Mar-07 1.1555 -0.015.164 1.80 999. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.012.1523 0.0053 -0.016.6863 1.29157 SUM SD TABLE 18 68 STOCK RETURN Y 3.05 3811.45 3819.6968 -0.030.029.030.55 14-Mar-07 1.05 26-Mar-07 1.0919 3.95 3627.219 3.267 2.020.6 21-Mar-07 1.001 0.90 3644.014.15 3655.65 7-Mar-07 943 948.05 3759.212 0.2209 -1.9 20-Mar-07 1.034.70 1.5 3761.0865 0.4 3641.25 3745.95 28-Mar-07 1.036 -0.093 0.3391 -2.815 0.0887 3.

GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH The total risk (standard deviation) associated with the stock is 3. The above graph revels that the average stock return is well above the market return. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.29 It shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor can sell off his holding 69 . The average beta is less than one that means this stock is less volatile than the market. when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could not happened in the last three month .0.69 and the beta is .

7 4148.9 4076.95 3850.7891 0.3 3988.459 -0.6 4089.6401 -0.05 4126 4090.4.85 1.298 -0.00 1.00 1.1394 2.0704 -1.042791 0.65 1.033.166435 0.75 990.95 1.4304 -0.1015 0.689953 0.436 2.891 0.4 4007.869 0.030.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK AND MARKET RETURNS COMPARISION 6 4 2 Y 0 X -2 -4 DATE GRAPH 19 70 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 -6 1/2 BETA STOCK PRICE OPEN CLOSE 983.4 3910.3 3852.030.3.470704 7.2848 0.339 2.25 3944.80 1.039.4 4124.7354 0.1677 0.921 12.036.15 4089.569333 0.048.05 987.5 4084.6652 2.557 -1.169 -1.45 4075.3473 -5.059.45 4123.174 0.25 4007.051.7 4080.8 3990.9 985.05 4027.05 1.7 4024.65 985 979.9334 15.0196 1.4 4090.95 1.00 1.076414 0.9514 VAR STOCK RETURN Y 0.9078 0.6242 0.098729 0.3 3911.35 1.55 4052.8878 -0.408 -0.8306 -0.0375 0.1 BPCL 0.15 3942.998 1.020.6304 -0.80 1.021.20 1.70 1.5 991.249 -0.013.95 1.85 1.5939 5.4135 X^2 1.15 962.9405 1.021.310009 2.45 4052.65 4066.1 985 980.1322 -2.207 0.9 4092.045.573 1.4162 0.00 1.030.020.00 1.1 4066.5944 -0.92 4.328283 1.3564 0.913889 0.1756 0.55 987.45 -1.031.7 992 985.85 4078.059.61224 NIFTY PRICE OPEN CLOSE 3966.020.044.995712 25.079.3 3933.9 980 988.956 -0.3168 1.793681 0.062173 0.00 1.849475 0.00 1.2841 -0.034.482521 0.551 2.754953 0.85 1.3094 -3.050.5241 -0.80 1.36 -0.3922 -1.027.40 1.047.028617 1.4 3983.40 1.1 2.1121 0.4 3933.05 4147.413 0.00 1.3 OIL AND GAS INDUSTRY 4.7 SUM SD TABLE 19 X*Y 0.35 1.6 4102.333311 0.9141 0.9354 2.577 -0.55 RETURNS DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 MARKET RETURN X 1.8152 0.3142 -0.1008 .253 -0.8246 0.85 4082.39743 0.45 4102.4049 5.2 4109.4948 -0.15 3983.047.

624 35.052.0544 0.Standard deviation (total risk associated with stock) is 2.49 1.5 4187.7996 -1.80 1.0192 3948.855 1.8077 0.2944 4164.67 where as the beta value is 0.4464 2.3175 1.031.4 3745. The above graph revels that the average stock return is below the market return.017.033222 0.39 1.00 1.75 1.15 4096.7984 0.1 2.55 0.9 4047.6863 3893.0533 1.026.90 1.280301 0.1611 4046.1053 1.3299 SUM -5.0052 -0.9 -3.044.75786 SD 2.1116 4107.015.730583 9.6 940 929.8 4146.035.50 1.043.00 1.9053 4216.6635 -0.881186 14.9617 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.385025 0.911 3939.093788 0.027.045.6752 4046 3938.1565 TABLE 20 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS STOCK PRICE OPEN CLOSE 1.3 -1.2863 4096.40 1.048.13597 1.524 0.383 5.069.1 3942 0.40 1.735884 1.5528 4149.603 -1.012.9 982.1 4044.95 1.2 1.2 -1.70 1.30 1.5 -0.016.020.002958 6.65 4040 -4.61.95 -4.078 2.4 -1.15 1.05 3893.203 -0.1238 -2.047.3687 0.20 1.00038 0.05 974.35 1.4 4137.05 1.45 972.372 2.912239 7.020.2 4183.35 998 1.4718 4198.104 -1.85 1.15 979.80 1.5012 4232 4223.55 1.038.7034 -0.0736 0.9586 -1.035. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.4563 3.029.037.70 1.016.35 1.79203 .0458 -0.80 1.00 991 1.364004 0.1383 -3.932673 0.041296 0.00 1.5294 0.7099 0.267 0.25 0.46945 47.476728 0.3687 4069.6205 0.00 1.25 1.65 1.05 1.0387 VAR 4.047.7695 -3.9 -1.0739 -0.052.034.804 4.00542 1.004.95 -0.3878 4140.0808 -0.65 953.00 1.07108 1. In the month of January this stock is more fluctuating as a comparison to the market price STOCK AND MARKET RETURNS COMPARISION 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 20 71 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 BETA RETURNS DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 MARKET STOCK NIFTY PRICE RETURN RETURN OPEN CLOSE Y X X*Y 4083.4219 4187.646 10.034.0277 4044.3 X^2 1.4 2.3 -0.15 4215.25 4164.4228 4223.75 1.2 1.040.55 4195.1101 4193.2 4224.85 4106.2 4058.2602 0.029.9198 -9.239842 0.

2613 X^2 3.9617 -1.6968 -0.95 1. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.025 3577.5 -0.96123 16.4 3641.1 -2.55 0.1523 1.1555 2.85 0.65 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.6506 4.466 -1.1 -0.5 3875.75 3861.75 2.89810 13.40 1.4712 -0.8315 1.030.55 -0.002.9744 -1.26773 2.011.35 3608.2611 -0.90 1.4687 3697.5 3576.25 3770.8631 SUM 3.15 3655.2753 0.00 1.1358 1.00 1.95 -1.093 3.9691 1.014.4602 0.7 3764.3205 9.6863 2.016.70 1.51 3759.05 -0.50401 0.65 -0.0865 0.50 1.26843 8.036 3639.3446 -1.85 3821.6 -1.80 1.85 966.45 1.55 3626. The above graph revels that the average stock return is below the market return.8059 VAR TABLE 21 72 X*Y 6.95 1.45 3819.5652 .5 986 1.1469 1.4613 3735.0887 1.9592 3876.04 where as the beta value is 0.948 3627.2024 4.55 3.3627 -0.7291 1.55 -0.017.7439 2.7568 3811.2399 0.0249 0.166 3717.80 1.014.0919 3.00127 0. In the month of February this stock is more fluctuating as a comparison to the market price DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 920 955.0053 -2.4 3811.7376 -4.029.030.00 1.75 3761.056.6876 0.05 1.27906 1.3 3678.76.4665 2.16400 1.00 1.1945 3661.016.6 -0.05 949 942 941 948 943 948.029.4811 0.3391 0.05 1.4115 0.25 3761.9813 0.028.08642 4.07358 0.00 991.004.10 1.5929 -0.29157 SSTOCK MARKET NIFTY PRICE RETUR RETURN OPEN CLOSE Y X 3745.9 967.80 999.45 3734.6325 -0.75700 0.1 1.006.45 0.014.85 3718 0.74487 79.018.9 -0.6 2.0361 3788.034.227 3726.2209 -1.9451 3768.8079 3764.6942 -0.405 3863.4033 SD 1.2 3.6257 -0.21283 0.65 3726.81576 0.7313 -4.012.25 1.45 1.9 3643.126 3818.15 3798.25 950 969.1 -2.6672 1.90 1.40 1.21968 3.378 3644.9 0.541 3.015.00 1.90 1.3 1.030.35874 0.019.4361 23.Standard deviation (total risk associated with stock) is 2.020.7053 3761.2489 -0.012.71623 3.89312 11.011.95 975 984.8719 3680.846 3611.6898 -3.35 3697.

so the investor should be cautious enough while he go for an investment in this particular stock.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. the kind volatility shown in the grape make this stock more riskier one .61.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH 21 Standard deviation (total risk associated with stock) is 2. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.67 where as the beta value is 0. The above graph revels that the average stock return is below the market return. 73 . In the month of March this stock is more fluctuating as a comparison to the market price.

393061 0.606265 0.85 4137.620614 2.86324 0.1 3944.270722 0.95 921 895.75 872.5 890.4703 -0.333431 0.290093 1.1 4066.7 4107.0982 -2.35 869.45 3983.000654 6.45 4084.451981 0.3.8314 3.778291 1.45 895 891.75 3910.65 4090.547984 0.9 4096.552602 0.8352 -0.65 4007.6 4098.3464 1.009 1.25 4092.3 909.533815 0.7 4029.551438 0.95 3911.409465 0.605738 2.15 919.3 3963.084154 2.698 -0.86762 8.61044 0.03384 -0.3 3987.15 912 916.05 896 914.9 894.0163 -2.284958 0.4 BETA 1.003566 0.339489 16.010855 0.75327 -1.49914 12.8 919.6 916 923.75 918 921.607 0.85 SUM SD TABLE 22 STOCK RETURN Y -0.123875 2.95 3852.81736 3.8 4027.02068 1.27357 -0.25 4016.426348 -0.25 4126 4137.5318 -1.304084 0.7 916.349255 -0.596241 0.774159 0.025569 2.3379 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURNS 4 3 2 1 0 -1 -2 -3 -4 Y DATE GRAPH 23 74 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS STOCK AND MARKET RETURNS COMPARISION .3 4041 3990.5 4102.270238 0.340178 0.85 925 911.115721 0.88616 0.69551 VAR X*Y -0.05 4157.358 -1.593516 0.608862 0.85 886.440619 1.4 4167.3534 -2.8 922 896.9 896.55 4059.7 912.905274 1.65 923 916.75 4075.167662 0.073028 0.115252 26.15 4089.45486 -0.9 874.104185 0.15 4123.85 4099.046071 NIFTY PRICE OPEN CLOSE 3966.187999 -0.2 ONGC DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 880 876.3431 0.2 895 911.5 865.6 4114.1 919.65 4105.154743 0.05 895.15 3953.4.45 916.1 0.7476 0.8332 MARKET RETURN X 1.95 4148.7899 0.8176 2.5131 1.54389 3.15 4052.45 3933.599322 0.006678 -0.7874 -1.240363 -0.2 4140.059717 0.204287 0.331967 1.360452 X^2 1.55 887.0724 8.1 914.8045 -0.370712 0.614734 0.15 4011.9759 3.

49678 22-Feb-07 4096.9 1.913487 TABLE 23 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 912 910.011 0.95 855 860 830 825.1381 2.094738 7.1574 0.4884 0.25 906.65 4126.15 -0.9767 1.26401 7-Feb-07 4198.54288 12-Feb-07 4187.04 .691015 0. So an investor should be careful while investing this stock.67694 26-Feb-07 3939.9 888 866.2 -2.2 4187.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.5 4239.545247 0.4604 0.581788 27-Feb-07 3948.063516 0 17.51835 23-Feb-07 4046 4065.0716 0.064776 0.371687 19-Feb-07 4149.138183 0 2.7 -1.85 4175.2 -1.19895 6-Feb-07 4216.6474 0 0 SUM -19.1 817.9448 0.7 0.6 -0.996499 0.254511 -0.470138 0.25 4177.929 13.314272 -0.7582 0.2 4232.37173 -0.7955 0.1261 1.390026 0.7198 0.15 880 873 872. The systematic risk here is well above the standard risk associated with any stock.8 4155.8 905 906.3 -1.480722 -1.15 910 876.9597 0.55257 9-Feb-07 4223.652649 14-Feb-07 4044.4 -1.35 1.7 -0.61558 8-Feb-07 4232 4245.55 928.17709 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 23 75 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS STOCK AND MARKET RETURNS COMPARISION .252023 -0.502653 0.25266 0.15 4132.Standard deviation (total risk associated with stock) is 1.442966 0.275106 -0.25 906.65 835.098767 0.8 -0.9 -2.989 0.1 3958.83 where as the beta value is 1.38005 0.425283 -0.17972 2-Feb-07 4140. Frequent fluctuation in the stock price makes the investor more vigilant MARKET STOCK NIFTY PRICE RETURN RETURN DATE OPEN CLOSE Y X X*Y 1-Feb-07 4083.4 3893.075684 0.05 917 908.562999 4.25 788.9 4057.05 3958 -2.7069 VAR 2.58582 BETA 1.1 4132.45 -3.32841 -5.8 860 885.231093 0.616482 -1.94672 21-Feb-07 4107.1 910.4 4141.55 4228.2 910 891.7853 0.5707 1.3874 0 0 13-Feb-07 4069.45 -3.85 920 905.52209 28-Feb-07 3893.812253 -1.624521 -0.8 801.6 885 900.9 910 894 897 883.412975 -2.072406 SD 1.307795 0.2 4198.659755 0.05 X^2 2.241562 0.21929 5-Feb-07 4193.1 834. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.00757 20-Feb-07 4164.15 4219 -1.3 -1.738408 -1.0562 0.031431 1.54951 15-Feb-07 4046.7 2.685666 -0.

431789 -1.1 764.060505 2.85 3821.45 3734.5 3875.815762 0.75 3761.5 786.8786 -0.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.03567 -0.6 783.898109 13.72915 1.9816 MARKET RETURN X 1.05 785 768.863059 2.7209 1. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.35 3697.4345 -3.4 3641.959224 -0.5 786 762.16336 1.0025 -0.94769 3.1 3644.2 3811.705286 -1.086422 4.4 3811.75 3726.807881 2.35 789.25 3761.74487 79.5 3576.492616 5.50966 1.55 3611.212833 0.8 BETA 0.37391 -2.870977 41.6 3639.40498 -1.65 3761.1466 -1.373724 6.05 795.3865 -1.461338 0.20243 4.9453 3.15 800 790.219685 3.5355 1.860958 6.5652 .48681 1.164008 1.15 3798.6 3735.6964 -2.9669 1.446077 1.15 2.55 3764.7 3764.267733 2.474203 0.743143 10.8463 1.16565 0.95 802 798.1 3759.0446 -1.85 3627.7118 1.716232 3.22738 -4.Standard deviation (total risk associated with stock) is 1.2202 1.279062 1.073583 0.02522 2.45 3819. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 STOCK PRICE OPEN CLOSE 788.6 3697.761169 0.65 3661.55 SUM SD TABLE 24 76 STOCK RETURN Y 1.85 766 779.9 3643.001272 0.4 786 793.55 3626.9 785 773.945051 -3.4496 1.121186 0.871902 0.85 769 793.0092 3.756822 -2.9 776.7624 -0.6236 3.55 3768.07 .96123 16.95 776.5 3577.2189 3.926655 X^2 3.757009 0.8 872 880.194484 -0.514967 NIFTY PRICE OPEN CLOSE 3745.65 824 852.95 3818.22 -1.9 3876.05 3863.9 3680.25 850 864.75 3861.3821 1.083611 4.4115 0.1 3788.53901 4.468705 1.37809 -0.268432 8.036138 0.15 3655.3 874 843.8 790.6 798 807.85 3718 3717.3 3678.1 840 850.25 3770. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.35874 0.58418 1.783122 0.9 811.35 3608.403314 VAR X*Y 1.55 860 874.15 791 781.893121 11.504017 0.530204 0.1404 -1.4068 0.65 3726.71 where as the beta value is 1.5223 -2.127571 -4.12594 -1.

Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH 24 The total risk (standard deviation) associated with the stock is 1.514 It shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. The above graph revels that the average market return is well above the stock return.98 and the beta is 0. The average beta is less than one that means this stock is less volatile than the market.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor can sell off his holding 77 . when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could not happened in the last three month . Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk.

795059 NIFTY PRICE OPEN CLOSE 3966.84241 1.470704 7.4049 5.45 520 504.098729 0.24935 -0.733083 -1.95598 -0.65 510 513.328283 1.8 3990.45 4123.73542 0.9 4092.25 4007.6 505 512.482521 0.55 535 514.192923 0.8232 -1.88583 -0.15 3983.45 532 535.338954 2.042791 0.85 508 503.359954 -0.830634 -0.9 537 528.7 507 502.028617 1.292516 4.5 505.35468 -0.789172 -0.4 3983.995712 25.25 3944.95 3850.45 4102.5 4084.314212 -0.222236 X^2 1.05 524 526.3 3911.57356 -3.686275 -8.037504 0.786958 0.08903 0.79459 0.55 527.39743 0.256271 -0.57733 -0.913889 0.6 4102.128713 0.4 3933.05 4126 4090.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 78 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS STOCK AND MARKET RETURNS COMPARISION .4 4007.6 4089.7 4080.333311 0.793681 0.14043 -0.95 525.25273 -0.45 4075.85 4078.759542 -0.35 533.3 3988.15 4089.062173 0.5 BETA 0.45 525 522.89744 0.211271 -0.732867 -0.20686 0.7 SUM SD TABLE 25 X*Y 0.96154 1.2 4109.95 520 506.4 4124.65 4066.353276 0.3 3852.07431 -0.5 507.RELIANCE ENERGY DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 520.630421 -0.9 4076.15 3942.55678 -1.1 4066.3 3933.6848 20.20322 -1.310009 2.05 4027.592677 3.5 530.584607 1.076414 0.329435 3.7 515.569333 0.7 4024.21824 -0.16917 -1.57296 1.52885 -0.33036 3.86888 0.55 4052.55 537 532.55077 2.45 505 505.46667 -2.15165 -1.89089 0.7 4148.5 524.22047 -0.689953 0.951434 VAR STOCK RETURN Y 0.95 514.4 3910.635799 6.754953 0.8 534.166435 0.85 4082.849475 0.828539 MARKET RETURN X 1.8473 0.554455 2.30705 3.4 4090.788028 -0.407965 -0.371982 2.74766 -2.1 530.05 4147.85 513 524.99785 1.32139 -2.45 4052.

74457 19-Feb-07 4149.5245 2.991529 1.109082 12-Feb-07 4187.2705 8-Feb-07 4232 4223.48974 -0.933932 SD 2.368741 -0.05632 22-Feb-07 4096.46751 -0.881186 14.239842 0.25 4164.1 4044.364004 0. In the month of January this stock is more fluctuating as a comparison to the market price.45 554 560.2 4183.8 527.49107 -3.3 -4.719995 21-Feb-07 4107.15 4096.55 560 565.1 1.067987 15-Feb-07 4046.901786 -0.3 512.37156 1.4 524.9 510.4 555.280301 0.4 3745.730583 9.385025 0.6 546 535.045843 1.2 505.4 4137.2 502 479.86813 0.05 3893.700935 0.932673 0.620504 -0.35 560 534.15 4215.1 3942 0.65 535 549.28682 -2.82545 13-Feb-07 4069.961295 28-Feb-07 3893.35514 -0.002958 6.456262 -3.26661 -0.31753 1.05 569.45219 -3.18326 9-Feb-07 4223.476728 0.10782 VAR 4.35 2.65 516 504.3 -4.95where as the beta value is 0.75 551 542.55 526 533.06167 BETA 0.306368 2-Feb-07 4140.20321 -0.95 -2.8 4146.337168 0.5 1.68886 20-Feb-07 4164.55 4195.79203 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE 79 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 RETURNS STOCK AND MARKET RETURNS COMPARISION .39021 4.9 540 546.173285 -0.13597 1.841943 23-Feb-07 4046 3938.442905 TABLE 26 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 519.7 521.4 -2.2 4224.050526 26-Feb-07 3939.454373 1.00542 1.2 0.024823 27-Feb-07 3948.041296 0.85 4106.83 .7783 -1.93557 SUM -15.735884 1. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.211254 -0.529435 1.80387 16. Frequent up and downs MARKET STOCK NIFTY PRICE RETURN RETURN DATE OPEN CLOSE Y X X*Y 1-Feb-07 4083.5 562 559.073621 0.00038 0.43594 0.Standard deviation (total risk associated with stock) is 1.2 504.55 -1.521046 5-Feb-07 4193.65 X^2 1.2 4058.60333 -0.39518 -1.7 520.429969 6-Feb-07 4216.64582 6.62403 48.85474 2.4 0.07108 1.5746 7-Feb-07 4198.8 539 520.85 535 536.2 0.2 -1.21427 14-Feb-07 4044.9 4047.7542 -9.25 0.9 -1.38284 3.054389 0.033222 0.5 4187.46945 47.42997 -1.25 -0.95 -3.07843 13.5 503.55 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. The above graph revels that the average stock return is below the market return.9 1.65 4040 -2.093788 0.912239 7.

5 475.50966 1.25 473.9 480.64842 8.815762 0.212833 0.483614 2.6 457.716232 3.194484 -0.501115 4.15 477.996961 0.17771 1.5 3576.76819 -1.492648 NIFTY PRICE OPEN CLOSE 3745.9 469.164008 1.25 489.55 3768.85 482.468705 1.756822 -2.111914 -1.33059 0.461338 0.65 480.893121 11.55 SUM SD TABLE 27 80 STOCK RETURN Y 0.945051 -3.9 3876.45 3819. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. The above graph revels that the average stock return is below the market return.9 475 475 478.403314 VAR X*Y 0.381756 -0.219685 3.2 BETA 0.5 3577.05 485.8 494.8 485.02522 2.001272 0.85 3718 3717.279062 1.55 3611.636213 2.061094 -0.2 456.4 3811. In the month of February this stock is more fluctuating as a comparison to the market price and the fluctuation in the stock price compel the investor to compete with the bulls and bears in the market.85 458.002446 5.65 3761.25 3761.3 3678.05 457.70519 2.96698 0.35874 0.086422 4.6 3639.41783 5.85 3627.757009 0.25 3770.02604 1.959224 -0.504017 0.25 485.45 492 492 485.457839 2.37195 -1.807881 2.492321 35.74487 79.99101 X^2 3.777928 1.730086 -1.50026 -1.12289 -1.55 3626.073583 0.35 3697.806041 1.11 where as the beta value is 0.1 3644.705286 -1.75 3761.4 3641.93715 1.70081 -1.27229 2.15 458.898109 13.56602 0.93.16565 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.260607 -1.15 466.181103 -1.20243 4.290157 -0.65 3726.331178 0.55 473.871902 0.40498 -1.51909 -1.75 3726.85 462.1 3788.85 475.35 3608.96123 16.25 466.740538 2.55 480.418148 0.05 3863.085337 0.94769 3.555611 2.55 3764.85 3821.036138 0. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 STOCK PRICE OPEN CLOSE 479.2 3811.12594 -1.65 3661.2 489.22738 -4.6 3697.15 3798.05 456.126087 0.1 3759.9 3680.339875 4.75 3861.302932 0.6 3735.268432 8.6 477.289597 -1.72915 1.2 480.729107 3.37809 -0.25 478.45 3734.9 475.9 3643.286983 1.15 3655.03567 -0.15 491.267733 2.Standard deviation (total risk associated with stock) is 2.8463 1.863059 2.45 491.25 475.684211 2.7 3764.729454 MARKET RETURN X 1.5652 .2 462.5 469.5 3875.95 3818.05 482.4115 0.

when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could not happened in the last three month . The average beta is less than one that means this stock is less volatile than the market. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 RETURNS 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH The total risk (standard deviation) associated with the stock is 1.73 and the beta is 0.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor can sell off his holding 81 . There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.492 It shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. The above graph revels that the average stock return is well above the market return.

321.22893 1.08889 1.205.091701 1.275.4 INFOTECH SECTOR 4.216.57296 1.39743 0.244.4 4007.00 2.25273 -0.50591 0.20686 0.311.16917 -1.164.00 2.00 2.9 4076.200.05 2.232.478525 0.482521 0.05268 -1.00 2.680402 NIFTY PRICE OPEN CLOSE 3966.830634 -0.85 4082.754953 0.9 4092.760722 -0.222.35 2.245.7 4080.32519 X^2 1.45 4075.235.302383 1.00 2.15 2.223.359954 -0.702858 -1.1 4066.4 3933.650754 2.00 2.3 3852.4 3983.7 4148.328283 1.3 3988.15 2.7 4024.57733 -0.05 4027.1 INFOSYS DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 2.61591 0.310009 2.166435 0.098729 0.995712 -3.25 4007.73542 0.00 2.65 4066.062173 0.15 4089.255432 0.364423 0.20 2.447838 -1.314212 -0.235.254.85 4078.20 2.470704 7.081031 3.20 2.4.8 3990.272.01798 1.3 3911.50159 0 0.00 2.333311 0.240.6 4102.45 4052.00 2.10 2.05 4147.99785 X*Y 0.45 2.824184 0.190.201.45 2.14361 25.951434 VAR 17.40 2.2 4109.248.40 2.479 -3.884501 0.569333 0.95 3850.05 2.4049 5.325893 MARKET RETURN X 1.00 2.95 2.285.00 2.253.234.630421 -0.05 2.55678 -1.181.063636 0.55077 2.00 2.241.224.5 4084.7 STOCK RETURN Y 0.05 4126 4090.860351 0 -0.4.242.338954 2.286.247.509248 0.037504 0.028617 1.76169 0.3 3933.54661 -0.95598 -0.849475 0.00 2.913889 0.793681 0.183.24935 -0.205.95 2.202.00 2.02441 -1.00 2.822756 -1.282326 0.90488 0.4 3910.76932 SUM SD TABLE 28 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 4 3 2 1 0 -1 -2 -3 -4 Y DATE GRAPH 29 82 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS STOCK AND MARKET RETURNS COMPARISION .15 3942.6 4089.25 3944.245.683409 0.00 2.35 2.16877 -1.225.65 2.694706 1.87217 1.909492 0.30 2.30 BETA 0.65 2.4 4090.45 4123.57162 1.214485 2.00 2.215.206.272.275.076414 0.553239 0.407965 -0.200.00 2.689953 0.042791 0.15 3983.420582 0.55 4052.241.24281 -0.4 4124.60 2.86888 0.45 4102.89089 0.

308.10 2.48974 -0.360. There is a huge difference between systematic and unsystematic risk here virtually no systematic risk associated with this stock when we camper it with the total risk.351.87646 SUM -5.90 2.218.496882 2.55 .269.95 2.55 4195.95 -1.5 -0.364004 0.367865 -0.55 2.376.234.107353 0.4 3745.95 2.88386 4107.55 -0.730583 9.275.187.00 2.351.287.4 -0.79203 STOCK AND MARKET RETURNS COMPARISION 6 4 2 Y 0 X -2 -4 DATE GRAPH 29 83 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 -6 2/1 BETA RETURNS DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 MARKET STOCK NIFTY PRICE RETURN RETURN OPEN CLOSE Y X X*Y 4083.932673 0.00 2.46945 47.946677 VAR 3.07843 -2.385025 0.07108 1.00038 0.15 2.26661 0.045843 -0.20 2.3 0.4 0.95 2.132995 4149.368741 -0.78955 TABLE 29 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 2.20321 -0.15 4096.093788 0.180.812511 4216.265.382.85 4106.255.310.60333 1.88821 -1.41538 1.2 4224.50 2.529435 0.881186 14.272.073621 -0.05 2.324.2 4183.005839 4046.99064 -0.The total risk (standard deviation) associated with the stock is 1.24352 -9.109653 4140.278.500011 0.08051 -0.620504 2.2 -2.65 2.2 2.00542 1.357.37156 2.80387 17.24769 0.268.05223 3948.5 4187.9 4047. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.033222 0.00 2.695931 -3.456262 6.35 1.129956 -0.65 4040 -0.230.00 2.335.077.25 4.054389 0.62403 37.70 2.554681 4096.00 2.38284 1.284.25 2.92825 -1.842222 1.270.43443 4193.00 2.69954 -3.1 0.1 4044.06364 4198.55382 -0.25 2.9 0.250.00 2.476728 0.55 2.20 2.07476 4223.00 2.201009 4044.041296 0.95 -0.473376 4187.00 2.00 2.09133 4164.00 2.282.735884 1.1 3942 -0.00 2.365.55 -1.90 2.228257 4046 3938.361.002958 6.14238 4069.680714 3939.85474 0.374.95 and the beta is 0.2 0.239842 0.13597 1.63578 -1.05 3893. The above graph revels that the average stock return is well above the market return X^2 1.534676 0.53758 0.2 4058.359.3 -4.70949 0.7691 -2.912239 7.00 2.9 -1.235.40 2.00 2.95 2.792275 4232 4223.4 4137.39021 0.68 It shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.30 2.00 2.31753 1.8 4146.375.644718 3893.304.64582 4.382.25 4164.373.70 2.237.15 4215.05 2.280301 0.812765 SD 1.

4 3811.167.018.12594 -1.20243 4.72915 1.077.990.036138 0.075.45 2.5 3875.00 2.44124 -0.85 3821. In the month of February this stock is more fluctuating as a comparison to the market price and the fluctuation in the stock price compel the investor to compete with the bulls and bears in the market.120.212833 0.65 0.505945 2.086422 4.55 3764.25 3770.173.4 3641.833333 -2.807881 2.1 1.110.25 2.023125 74.219685 3.22738 -4.2217 -0.051.421995 MARKET RETURN X 1.37809 -0.00 2.5876 8.85 3627.29245 -2.15 2.863059 2.00 2.085.00 2.50 2.4115 0.50966 1.60 2.521015 1.815762 0.090.45 2.105.6506 1.00 2.75 2.05963 3.992.061.37357 2.3 3678.00 2.159.35 3697.995.10228 -0.961.15 3655.68513 -3.130.403314 VAR X*Y 6.00 2.56448 -2.194484 -0.5 3577.893121 11.6 3735.461338 0.115.00 2.75 3861.72298 1.00 2.9 3643.53346 8.705286 -1.00 2.40 2.55 3768.35 3608.81.40488 5.55 3611.467965 1.15 2.56917 0.468705 1.40498 -1.117.866058 X^2 3.00 2.007.75 3726.954343 NIFTY PRICE OPEN CLOSE 3745.05 1.55 SUM SD TABLE 30 84 STOCK RETURN Y 3.Standard deviation (total risk associated with stock) is 1.514334 -0.15 3798.2 3811.75 3761.1 3644.079.114.055.65 3661.267733 2.030.90 2.020. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 2.757009 0.945051 -3.15 2.40 2.00 1.96123 16.822239 1.03589 0.959224 -0.02522 2.65 3726.185464 -6.164008 1.05 2.45 3819.90 2.38469 -2.78564 2.268432 8. The above graph revels that the average stock return is below the market return.9 3876.093.100.22565 -1.70 1.5652 .047.279062 1.90 1.7 3764.70541 11.35 2.5 3576.1 3788.559918 -0.00 2.42891 -1.135.98428 2.039742 -3.120.45 3734.119.013.208193 13.25 3761.16565 0.058.86946 1.94056 5.9 3680.05 2.94769 3.685213 8.092.95 2.120.716232 3.898109 13.953977 -0.00 2.805288 -3.00 2.093. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.74487 79.35874 0.6 3697.090.523415 2.30 2.8463 1.03567 -0.05 3863.269241 0.65 3761.001272 0.85 3718 3717.6 3639.04939 1.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.188995 -0.35 2.087.55 3626.080.60 2.836871 1.105.110854 0.1 3759.95 3818.070.94 where as the beta value is 0.073583 0.871902 0.504017 0.95 2.00 2.756822 -2.60 2.

The average beta is less than one that means this stock is less volatile than the market. The above graph revels that the average stock return is below the market return.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor 85 . Here the beta is less than 1 by some small decimal. In the month of March this stock price showing sudden ups and downs.954. when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could not happened in the last three month .42 where as the beta value is 0.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 RETURNS 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH 30 Standard deviation (total risk associated with stock) is 2. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk.

1668 1.333311 0.66899 1.95598 -0.279376 X^2 1.4.20686 0.97363 1.298.229.026844 1.164195 0.681144 1.290.285.568521 1.45 4075.45 1.3 3911.65 4066.3 3933.10 1.65 4084.313.95 3850.00 1.45 2.569333 0.243.55 4052.665144 1.244.15 4007.45 -1.4 -0.392751 0.25273 -0.1044 1.57733 -0.19004 -0.73542 0.037504 0.00 1.314212 -0.098729 0.166391 -1.6 4089.20731 1.01946 1.7 -1.322646 0.259.93055 0.2 TCS MARKET RETURN X 1.9 -0.25 6.31179 1.00 1.259.45 4092.50 3966.689953 0.10 1.4 -1.25 4007.10 4090.247.90 4123.198.90 1.80 3983.304.297689 TABLE 31 .15 4066.324.55077 2.5 -4.800766 1.407965 -0.297.45 4089.3 -0.73521 1.076414 0.248.913889 0.9 4076.15 -1.305.75 4148.482521 0.277.05 2.995712 25.7056 -0.65 3852.313.325.329.315.256.328283 1.026746 1.00 1.05 4027.6 4102.315.470704 7.028617 1.359954 -0.33168 1.307.4.40 3933.95 1.35 4052.45 1.315.253.8 -2.7 -0.00 1.300.265.297.315.951434 VAR X*Y 1.302.61187 0.99785 1.323.793681 0.849475 0.05 0.51243 -0.50 1.89864 1.166435 0.98019 0.24935 -0.16917 -1.326.37925 1.6091 5.55 1.79202 1.85 4078.89089 0.10 1.338954 2.15 1.280.00 1.3 3988.477048 33.042791 0.350.85 4082.61985 1.15 3942.75185 1.553603 1.062173 0.15 3983.45 -1.72075 1.277.40 3910.142699 0.31514 1.55678 -1.4 4124.7 4024.90 1.4 -1.86888 0.263.325281 SD 2.36347 7.4049 5.235.90 1.883978 1.7 4080.630421 -0.57296 1.311.388.00 3990.39743 0.830634 -0.140138 15.05 4147.4 1.1581 1.2 4109.00 1.70 4102.48023 SUM -2.00 1.757335 1.1 -0.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 8 6 4 2 Y 0 X -2 -4 DATE GRAPH 31 86 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 -6 1/2 BETA RETURNS DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK NIFTY PRICE RETURN STOCK PRICE OPEN CLOSE OPEN CLOSE Y 1.15 4126 4090.310009 2.95 3944.4 0.40 1.754953 0.

00 1.07108 1.55 1.041296 0.60333 0.254.881186 14.730583 9.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.436101 4187.272.50 1.484615 0.300.108491 0.64582 3.2 4183.238007 4164.35 1.233.306.618516 0.00542 1.300.260.002958 6.106922 4223.35 0.21682 SUM -4.40 .606321 4046 3938.120767 4193.62403 24.256.85 4106.80 1.11016 3893.25 4164.081608 3948.5 4187.95 -1.299.2 2.48974 0.054389 0.735884 1.05 1.385025 0.20321 0.932673 0.15415 2.2 4058.364004 0.305.00 1.55 -0.46945 47.162797 1.313.15 4096.2 0.253.26661 0.00 1.311.55 0.252.31753 0.299.309.5 0.85 1.518339 4107.331209 4096.032456 4216. X^2 1.00 1.115473 1.30 1.305.00 1.313.55 4195.38284 0.28956 0.05 3893.40 1.29 where as the beta value is 1.264.073621 0.1 0.24682 -0.295. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.368741 0.00 1.65 4040 -0.286.309.00 1.30 1.300.3 -3.645459 0.456262 5.14891 4044.37156 -1.298.39021 1.00 1.4 -1.24231 -0.289.3 0.239842 0.21168 -3.52616 -0.00 1.80387 12.25 1.80 1.43846 -1.2 -1.9 4047.21449 4140.50 1.75 1.277.15 4215.620504 0.00 1.33 .68016 -0.00038 0.292.287.265.300.28842 -9.4 -0.85474 1.90 1.25 0.301.304.061303 0.476728 0.00 1.4 4137.80941 -1.15 1.045843 0.36293 -2.00 1.4 3745.529435 0.42839 4069.292.40 1.912239 7.11196 -0.95 -1.606083 3939.13597 1.300706 4232 4223.90 1.8 4146. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.250.515349 SD 1.80 1.07843 -1.291157 4149.20985 VAR 1.00 1.79203 STOCK AND MARKET RETURNS COMPARISION 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 32 87 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 X 2/1 BETA RETURNS DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 MARKET STOCK NIFTY PRICE RETURN RETURN OPEN CLOSE Y X X*Y 4083.1 4044.193.033222 0.95 1.093788 0.544567 4198.463737 TABLE 32 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 1.255.1 3942 1.40 1.9 -1.033641 4046.2 4224.10 1.294.40 1.00 1.9 0.464 -3.Standard deviation (total risk associated with stock) is 2.09217 -1.283.280301 0.40 1.

254.83.036632 0.00 1.254.255814 -0.224.65 1.35 3697.42562 4.213.81402 -1.94769 3.89496 -1.40 1.65 3661.84047 -5.2 3811.4115 0.8463 1.863059 2.7 3764.349593 -0.9 3643.210.898109 13.00 1.26864 7.01247 0.039937 -1.55 SUM SD TABLE 33 88 STOCK RETURN Y 4.35 1.000859 8.190.40 1.233.35874 0.959224 -0.705286 -1.461338 0.403314 VAR X*Y 8.25 3770.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.194484 -0.85 3627.15 1.288.55 1.26039 0. In the month of February this stock is more fluctuating as a comparison to the market price DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 1.20243 4.84859 2.6 3735.5652 .945051 -3.55 3764.96123 16.30208 3.00 1.248.267733 2.202.996005 -1.076909 3.90 1.72915 1.860213 6.5 3875.201.387995 3.554167 -3.00 1.55 3626.234.303.887 where as the beta value is 0.842868 1.218.00 1.208.75 3861.219685 3.55 3611.30 1.237.241.666859 -0.50 1.9 3680.00 1.3 3678.22738 -4.5 3577.841022 3.468705 1.279062 1.55 1.70 1.1 3759.05372 -0.25 1.188.00 1.261.25565 6.001272 0.45 3734.02522 2.164008 1.12594 -1.35 1.733854 2.55 3768.212833 0.532626 0.85 3718 3717.268432 8.16565 0.85 0.00 1.68585 -2.253.269.74487 79.807881 2.176553 -1.00 1.073583 0.30 1.757009 0.086422 4.75 3726.03567 -0. The above graph revels that the average stock return is below the market return.1 3644.230.95 3818.20 1.225.00247 72.734641 2.93469 0.31483 0.212.910386 NIFTY PRICE OPEN CLOSE 3745.31237 0.Standard deviation (total risk associated with stock) is 1.30 1.244874 X^2 3.1 3788.312.55556 0.90 1.00 1.95 1.228.80 1.40 1.69163 MARKET RETURN X 1.157481 -0.65 3726.716232 3.260.15 3798.35 1.277.072249 8.15 3655.285.75 3761.00 1.37809 -0.235.45 3819.804193 8.190.25 3761.386555 -1. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.00 1.00 1.55 1.261.00 1.267.4 3811.85 3821.756822 -2.260.155.036138 0.05 1.4 3641.209787 11.504017 0.65286 -2.65 3761.6 3639.225.475813 2.65 1.35 3608.80 1.00 1.190828 5.871902 0.864 -0.05 3863.00 1.16153 0.40498 -1.197.893121 11.50966 1.265.248.9 3876.200.6 3697.216.191.815762 0.5 3576.

Here the beta is less than 1 by some small decimal. In the month of March this stock price showing sudden ups and downs.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor can sell 89 .910 nearer to one some sort of risk associated with this stock which we can not element an investor can go for making an investment in this stock after having an fundamental analysis . Diversification of his portfolio would help the investor to eliminate considerable part of risk associated with this stock.40 where as the beta value is 0. when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could not happened in the last three month .GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 RETURNS 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE S GRAPH 33 Standard deviation (total risk associated with stock) is 2. The above graph revels that the average stock return is below the market return. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk. The average beta is less than one except in the month of January that means the over all performance of this stock is one want to go for an long term investment he can go for this stock because Infosys is one of leading company in the world and the IT sector itself is more promising than any other sector .

15 3983.863248 5.8 3990.55 612 620.05 596 578.7 4148.500582 0.3 3911.89089 0.246564 MARKET RETURN X 1.4 3910.382254 0.25 3944.15 4089.569333 0.7 4024.6 4102.4049 5.3 3933.3 631 613.1 4066.047049 X^2 1.4 4124.722135 -2.304166 3.59983 2.5 609 598.57296 1.22432 -2.5 4084.71459 2.4 3933.55678 -1.2 4109.45 631.1 633.4 651.20686 0.35563 2.35657 NIFTY PRICE OPEN CLOSE 3966.27309 0.040323 -0.678318 0.65 4066.6 637 620.042791 0.85 4078.15 3942.095238 -2.6 4089.328283 1.076414 0.75 625 620.56672 1.25 .830634 -0.68 2.65 612 621.25 4007.9 4076.70478 1.8615 2.55 4052.99785 1.3 WIPRO 1.55 620 626.49196 -1.098729 0.9 639.689953 0.9 637 641.630421 -0.230171 0.605804 1.381409 2.25273 -0.314212 -0.359954 -0.05 4147.95 3850.339869 -2.3 3852.45 4123.73542 0.062173 0.411003 1.45 4075.593137 -0.95 630 636.57733 -0.995712 25.470704 7.793681 0.70205 0.37218 5.310009 2.338954 2.407965 -0.951434 VAR X*Y 1.845719 -0.3387 11.44431 -0.166435 0.05 4126 4090.849475 0.86888 0.16917 -1.471088 0.7 SUM SD TABLE 34 STOCK RETURN Y 1.037504 0.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 4 2 Y 0 X -2 DATE GRAPH 34 90 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 -4 1/2 BETA RETURNS DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 603 611.5 584 579.3 651.86112 -3.24935 -0.9 585 590.4 3983.577341 0.55077 2.45 4102.028617 1.95598 -0.9 652.75 618 632.4.3 3988.913889 0.79098 0.4.05 4027.4 4007.4 626.008475 1.390893 -1.2 622 606.85 4082.39743 0.333311 0.813 -3.546619 2.754953 0.45 4052.4 4090.3 630.9 4092.41791 1.806958 34.482521 0.531037 1.7 4080.79803 -2.93624 -0.05 590 619.

85 668.9 0.72868 0.13597 1.620504 0.069182 0.5 4187.364004 0.54843 4187.881186 14.39021 1.15 4215.399046 -0.036711 0.079365 1.40013 1.1 1.77528 -1.824 0.17469 4193.95 -0.846019 TABLE 3 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 624.8 635.Standard deviation (total risk associated with stock) is 2.1 3942 -1.735884 1.641628 -0.26661 -0.69919 -1.193087 4107.65 4040 -2.912239 7.153846 2.837766 4046 3938.24 where as the beta value is 1.25 670 664.25 4164.8 637.1 4044.041296 0.05 3893.054389 0.37 .1 645 633.232362 4223.045843 2.98965 -0.64582 17.368741 0.932673 0.13428 3948.8 650.15 4096.2 4183.2 4224.00542 1.2 4058.476728 0.4 4137.126183 -0.85 4106.55 4195.07108 1.07843 1.1908 -3.109377 SD 2.944183 0.25 661.79203 STOCK AND MARKET RETURNS COMPARISION 6 4 2 0 Y -2 X -4 -6 DATE GRAPH 35 91 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 -8 2/1 BETA RETURNS DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 STOCK MARKET NIFTY PRICE RETURN RETURN OPEN CLOSE Y X X*Y 4083.6 615 604.37156 2.239842 0.3 -0.2 0.31753 -0.5 2.3347 3939.60333 -0.0618 4198.073621 -0. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.45 639 643.9 -1.85821 -1.3 630 643. Frequent fluctuation in the stock price makes the investor more vigilant.85474 -0.48974 -0.52718 4140.8 622.23671 -9.6 630.2 -0.4 .84408 4044.3 -4. X^2 1.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.2 650 677 681 681.38284 3.55 1.4 3745.20293 4149.417854 VAR 5.9 4047.1 633.8 636 642.093788 0.529435 -0.002958 6.55172 -2.20321 0.46945 47.55 0.033222 0.8 4146.35 -1.50505 -3.91522 4216.4 629 637.95 -6.013537 4164.105743 4046.4 -1.8 642.80387 15.663432 4232 4223.730583 9.456262 10.280301 0.28999 1.554762 4069.94127 SUM -9.85 667 623.4 668.25 1.14343 -0.85 634 634. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.62403 52.00038 0.385025 0.330542 3893.26385 4096.2 4.55 587 562.3 625 613.4 0.4 649.

060483 -0.1 3759.74487 79.9 575 555.49337 10.43478 -1.25 3761.362437 -0.8463 1.12594 -1.55 3611.11209 23.5 3875.086422 4.25 581.5652 .945051 -3.84615 -5.85 3718 3717.79825 7.7193 -1.898109 13.8 577 583.35 3608.55 3626.03567 -0.20243 4.75 3726.41where as the beta value is 1.871902 0.388783 -1.60499 102.65 570 571.164008 1.85965 -8. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.1 3644.2 3811.893121 11.153153 -2.332687 MARKET RETURN X 1.55 3764.6958 0.756822 -2.311418 NIFTY PRICE OPEN CLOSE 3745.16565 0.044248 1.65 3726.85 555 572.25 3770.807881 2.716232 3.34952 3.05263 5.9 570 559.15 3798.9 3680.Standard deviation (total risk associated with stock) is 2.68334 2.11 .196666 4.85 3627.80782 3.959224 -0.40498 -1.3 599.85 3821.25 579.01767 -4.05 597.7 591.219685 3.490619 0.37809 -0.55 SUM SD TABLE 36 92 STOCK RETURN Y 2.7 583.863059 2.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.21449 -0. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.13668 0.378119 -3.5 585 574.15313 3.7 595.96123 16.3 565 565.95 3818.7 3764.05 3863.9 3876.95 540 578.5 3576.397708 6.5 3577.5 578 565.9865 13.403314 VAR X*Y 4.447368 -1.02522 2.74529 -1.195841 -3.461338 0.315789 1.468705 1.139456 0.22738 -4.371905 -0.03745 2.45 3734.70321 3.65 3661.194484 -0.092593 -5.9 3643.001272 0.72915 1.60301 0.268432 8.13013 11.145686 1.815762 0.1 3788.15 3655.25 570 578.75 3861.4115 0.75 3761.7 559.56458 5.073583 0.757009 0.45 3819.036138 0.6 3735.25 572 562.6 3639.4 1.503993 11.5 573.4 3811.3 3678.279062 1.4 550.504017 0.33924 15.724671 1.35 3697. Frequent fluctuation in the stock price makes the investor more careful DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 577.7008 X^2 3.50966 1.267733 2.6 3697.8 581.4 3641.35874 0.2 570 536.65 3761.75 588 594.1 570 565.212833 0.94769 3.709332 -0.3 588 553.55 3768.705286 -1.

GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 8 6 4 2 0 -2 -4 -6 -8 Y 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 X 3/1 RETURNS STOCK AND MARKET RETURNS COMPARISION DATE GRAPH 36 Standard deviation (total risk associated with stock) is 2.but I hope this would be a short term phenomena in the long run this stock showing more colour full picture.41where as the beta value is 1. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.the beta values greater than 1 it shows that this stock is more risky and volatile than the index. 93 . The fluctuation in this stock mainly because of political and economical reason . so I think for the short time investment this stock not good but if you want hold the stock for a long time obviously it’s a promising one. Frequent fluctuation in the stock price makes the investor more vigilant In the case of Wipro the stock is more volatile and the systematic risk associated with this stock is very high since the beta value on an average greater than 1 it’s above the standard.11 .

7 925.7 4148.556933 -0.8 935.100858 29.15 3942.8 891.55 4052.45 947.13082 -1.3 3852.042791 0.45 4075.359954 -0.166435 0.45 882 910.123904 -1.16917 -1.62764 -0.7 SUM SD TABLE 37 STOCK RETURN Y 4.015 5.95 3850.24935 -0.15 930 896.45 4052.99785 1.25273 -0.57296 1.25 989.028617 1.7 4024.73542 0.212868 -0.15 937 921.00032 -3.95 933.57733 -0.05 4147.338954 2.1 1.16646 -1.85 4078.15 4089.45 4102.512596 -3.25 934.6 4089.062173 0.151983 -0.754953 0.328283 1.2918 1.9 951 986.2 971 968.15 3983.25 912 922.55 890 898.4 3910.4 968.608454 -1.630421 -0.4 4124.076414 0.1 920 908.282313 1.577516 3.05 4027.3 3911.85 963.629623 2.5 4084.689953 0.85 4082.55077 2.306839 0.2 4109.7 4080.73177 1.22241 3.8 934.23353 1.9 4076.037504 0.35 930 901.1 M&M DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 BETA STOCK PRICE OPEN CLOSE 913 954.470704 7.333311 0.669251 7.3 3988.482521 0.977386 0.45 4123.4049 5.706625 -2.913889 0.511752 -0.528457 0.27717 1.69691 -1.74324 -1.4263 MARKET RETURN X 1.35 933.20347 0.95 915.25 940 927.8 3990.793681 0.4941 2.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 5 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 37 94 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS STOCK AND MARKET RETURNS COMPARISION .65 4066.10753 -9.05 4126 4090.569333 0.960674 -1.314212 -0.4 4007.8 876.1 4066.72124 3.59677 0.7 950.4 3983.4.55678 -1.55 902 891.2 964.9514 VAR X*Y 4.4 3933.6 4102.5 AUTOMOBILE INDUSTRY 4.26777 -3.407965 -0.92423 0.33766 3.995712 25.830634 -0.39743 0.5.89089 0.17056 NIFTY PRICE OPEN CLOSE 3966.681836 -1.887 X^2 1.40898 0.098729 0.25 4007.677178 5.20686 0.25 3944.4 4090.86888 0.69233 -0.849475 0.1 928.95598 -0.36702 -3.310009 2.3 3933.9 4092.

184 3.5 4187.7 865.385025 0.46945 47.75 930.86308 -0.21858 -2.69521 1.95 879.95 3939.30591 -5.55 4044.13597 1.17 .11416 -2.05 3893.17081 -5.4 4137.62446 -2.39021 -0.1481 -52.2 4149.827226 27.9 4198.538655 16.00542 1.65 4040 4046 3938.75 818 884.18735 -2.82164 -0.Standard deviation (total risk associated with stock) is 2.620504 -0.5 908 915 913 954.2 4058.624 VAR X*Y -0.054389 2.16493 -0.8879 MARKET RETURN X 1.07108 1.364004 0.55564 -2.605797 -0.25 4164.3 SUM SD TABLE 38 STOCK RETURN Y -0.89671 -2.35 909.4 885 877.9 852 866.16458 -1.05 900 862 875.11572 1.20321 -0.529435 -0.881186 14.476728 0.5 861.31676 -0.9 844.95 4107.48974 0.3 4069.55944 2.730583 9.25 4232 4223.62362 -0.89831 -4.3 891 874.093788 0.35726 0.2 4140.35 4216.64582 0.6 X^2 1.85 4106.35 817 758.239496 5.429627 2.4 4187.97009 -5.5 4193.456262 0.55 4195.239842 0.07843 -0.85 822.455 1. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return 0.590059 0.423 where as the beta value is 1.5642 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETUR STOCK AND MARKET RETURNS COMPARISION 4 2 0 Y -2 X -4 -6 DATE GRAPH 38 95 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 -8 2/1 BETA RETURNS DATE 1-Feb-07 2-Feb-07 5-Feb-07 6-Feb-07 7-Feb-07 8-Feb-07 9-Feb-07 12-Feb-07 13-Feb-07 14-Feb-07 15-Feb-07 19-Feb-07 20-Feb-07 21-Feb-07 22-Feb-07 23-Feb-07 26-Feb-07 27-Feb-07 28-Feb-07 STOCK PRICE OPEN CLOSE 906 900.2 4096.79203 .932673 0.002958 6.2 921.4 4223.15 4096.251593 -1.368741 -1.85474 -3.42329 -3.37156 -3.26661 -1.82983 NIFTY PRICE OPEN CLOSE 4083.4 3745.80387 -9.22222 -3.1 4046.15 4215.28688 2.041296 0.00038 0.1 4044.073621 -1.1 843.2 4183.735884 1.8 4146.91304 -0.60333 0.2 4224.31753 1.1 855.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.51717 -1.045843 0.19048 62.033222 0.35 930.06132 -7.9 4047.35 910 946 926 936 908.95 871.55 903 889.838646 9. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.912239 7.17249 -0.55 4164.1 3942 3948.38284 -2.9 3893.280301 0.63055 -3.

9 1.5652 .3 3678.15 725.01332 0.2 725.000136 2.03378 -0.320242 0.037053 -0.6098 STOCK NIFTY PRICE RETURN OPEN CLOSE Y 3745.9 733.27E-07 7.00035 2.049354 -0.7 3764.025798 46.010361 0.9461 X^2 0.6 733.048264 0.35 760.15 761.023454 0.000327 0.85 743.008631 2.9 738.972 SD 2.2 709.1 749.095989 0.05 761.2E-05 0.98E-05 0.597858 3761.27366 3639.989113 SUM -12.018522 0.75 -4.9 3643.00314 0.02227 -0.993566 3768.65 2.018079 0.000127 0.122212 3680.35 3608.002734 0.669915 3697.2 805.18861 3611.0151 0.00162 0.01126 -0.55 1.887 where as the beta value is 0.00625 0.85 753.729263 3876.00405 -0.050159 -0.25 3770.75 757.55 788.75 3761.93E-05 0.001373 0.00948 0.95 -1.7 738.14054 3717.4 3811.758 3811.9507 3627.004687 0.011658 0.6034 3788.2 770.15 3798.2 -0. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns. In the month of March this stock is more fluctuating as a comparison to the market price.017568 -0.65 0.1 -0.5 3576.001141 1.35 762.35 3697.9 3.Standard deviation (total risk associated with stock) is 1.00788 0.15 3655.049982 9.55 3626.5 3875.05 730.45 3819.85 3718 -4.5 753.873 6.000482 8. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 BETA STOCK PRICE OPEN CLOSE 811.03539 3818.64E-05 0.000309 0.018719 0.01166 0.8 796.05 747.75 780.9 743.45 3734.029592 -0. The above graph revels that the average stock return is below the market return.000107 7.5 781.004613 0.8 788.028291 0.6 781.4033 VAR X*Y -0.35 757.76E-05 0.55 2.25 3761.75 3861.32255 3759.04025 0.5 770.021945 -0.30949 3726.000228 0.5 -7.25 738.6355 TABLE 39 96 MARKET RETURN X 0.249013 3661.55 -2.55 2.4 3641.47958 3644.25 760.297305 3764.16E-05 0.1 -1.6 0.4 0.1 747.6 765.1 -3.5 709.83.000876 1.55 762.110357 -0.022152 0.9 738.592724 3735.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.85 3821.021007 0.35 749.65 3726.6 -0.45E-05 79.944729 3863.05 1.00036 -0.05 765.35 805.6 796.13E-05 8.00846 0.85 4.009451 -0.000496 0.95587 3577.04692 0.7 730.6 0.

it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. February march ) less than 1 it means the systematic risk is moderate . 97 . The above graph revels that the average stock return is below the market return.62. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.04 where as the beta value is 0.so proper diversification of the stock will safe guard the investors money. In the month of March this stock is more fluctuating as a comparison to the market price. In the analysis the average beta of the stock in the three month (January. but in terms of return it shows below market tendency.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 RETURNS 4 2 Y 0 X -2 -4 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -6 DATE GRAPH 39 Standard deviation (total risk associated with stock) is 2.

55 4052.9 BETA 1.05206 2.23936 1.4 3983.19969 -0.55 967.05 4147.6 4102.014741 2.35 922 906.15229 -0.871722 X^2 9.4 4090.416784 0.004505 0.6 4089.8 936.014741 2.7388 -3.8 940 918.039877 0.95229 -2.2 4109.80646 15.201367 1.5016 -9.85 4078.601093 -2.699464 2.018038 0.05 4126 4090.95 3850.220979 1.928894 1.62063 4.7 4148.3 915 938.765684 5.545829 12.19969 -0.7 4080.45 4102.65 934.039877 0.95 905 886.4 4124.3 3911.95 921.106832 6.4.79707 1.1 934.858982 2.963791 -1.5 4084.15 3983.85 939 924.007278 0.15229 -0.2 MARUTI UDYOG LTD DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 939 968.8 914.416784 0.04972 -1.8 3990.4 3910.15 4089.963791 -1.98259 3.36344 -1.967669 NIFTY PRICE OPEN CLOSE 3966.201367 1.254795 78.066251 5.93693 0.018038 0.3 3852.35 969.172907 -1.139376 4.65944 -0.375712 1.004505 0.1 4066.36184 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 40 98 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 RETURNS STOCK AND MARKET RETURNS COMPARISION .45 4052.3 3933.066251 5.45 4123.79707 VAR X*Y 9.83634 -1.6 976.699464 2.5 888 905.545829 12.06742 2.4 3933.25739 -2.139376 4.23936 1.83634 -1.80646 15.06742 2.928894 1.172907 -1.95 934.7 SUM SD TABLE 40 MARKET X 3.05 4027.04972 -1.3 3988.65 930 908.57861 -3.28495 1.753728 0.753728 0.25739 -2.75 908 918.5.254795 95.65 4066.765684 5.15 3942.05 949.85 4082.25 4007.93693 0.55 974.007278 0.65944 -0.106832 6.15 939 948.36344 -1.45 4075.65 922 912.239534 STOCK R Y 3.375712 1.601093 -2.7388 -3.57861 -3.45 890 880.28495 1.95229 -2.5 974.7 913 910.4 4007.9 4092.05206 2.9 897.62063 4.7 922.9 4076.5016 -9.7 4024.25 3944.220979 1.858982 2.

25 -0.79953 0.07108 1.6 951.041296 0.44712 SUM -8.13597 1.11601 -0.6 962.75 898.2 4058.85474 1.456262 10.36641 28-Feb-07 3893.921586 SD 2.4 3745.05 857.2 4224.95 -2.6 944. Here the unsystematic risk very less so diversification alone may not be ensure the safety of your money ST MARKET OCK R NIFTY PRICE DATE OPEN CLOSE Y X X*Y 1-Feb-07 4083.3 -5.7 941.9 0.3 878.1 -3.65 4040 -2.239581 21-Feb-07 4107.996243 -1.073621 0.239842 0.659639 1.80387 19.794466 23-Feb-07 4046 3938.75 892.368741 0.95 -1.851473 12-Feb-07 4187.05 3893.64582 4.045306 6-Feb-07 4216.912239 7.26661 -0.126183 27-Feb-07 3948.974381 0.39021 3.25 940.900931 20-Feb-07 4164.4 1.05 892.604873 -0.31753 2.3 887.483852 5-Feb-07 4193.9 4047. The systematic risk here is well above the standard risk associated with any stock so an investor should be careful while investing this stock.02082 -1.5 0.713955 0.476728 0.16612 -0.620504 -0.16126 22-Feb-07 4096.25 952.150694 -0.9 940.546553 7-Feb-07 4198.15 4096.054389 -0.62204 .2 1.6 963.3 -3.55 4195.25 892.443261 0.35 1.05863 8-Feb-07 4232 4223.2 4.55 941.107112 2.00542 1.96 .15 880 880 863.9 857.85 4106.395856 14-Feb-07 4044.48974 0.60333 1.8 4146.the beta values greater than 1 it shows that this stock is more risky and volatile than the index.708968 13-Feb-07 4069.5 952.427088 VAR 5.033222 0. The average stock return and market return shows a decreasing trend and also decrease in stock return well above the market return.9 890.25 914.25 944.364004 0.5 951.5 4187.7 STOCK AND MARKET RETURNS COMPARISION 6 2 Y 0 X -2 -4 DATE GRAPH 41 99 2/27 2/25 2/23 2/21 2/19 2/17 2/15 2/13 2/11 2/9 2/7 2/5 2/3 -6 2/1 RETURNS 4 X^2 1.33029 -1.05 914.05 892.46945 92.05 841.9 -1.55 962.932673 0.875 -2.960918 26-Feb-07 3939.20321 -0.00038 0.15387 -3.1 4044.5 863.35922 BETA 0.1 3942 1.55 -2.08814 19-Feb-07 4149.385025 0.890755 TABLE 41 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK PRICE OPEN CLOSE 924.2 0.07843 9.002958 6.23384 9-Feb-07 4223.529435 1.37156 -1.62403 85.093788 0.735884 1.09449 0.23 where as the beta value is 1.25 4164.05 887.7 912 912 890.55 2.280301 0.5 878.462643 1.Standard deviation (total risk associated with stock) is 1.15 898.11245 -3.15 4215.4 -2.38284 2.20665 15-Feb-07 4046.4 4137.045843 0.730583 9.86938 -9.25 963.186623 2-Feb-07 4140.881186 14.2 4183.3136 -0.

93724 1.945051 -3.77917 0.45 3819.65 837. DATE 1-Mar-07 2-Mar-07 5-Mar-07 6-Mar-07 7-Mar-07 8-Mar-07 9-Mar-07 12-Mar-07 13-Mar-07 14-Mar-07 15-Mar-07 16-Mar-07 19-Mar-07 20-Mar-07 21-Mar-07 22-Mar-07 23-Mar-07 26-Mar-07 28-Mar-07 29-Mar-07 30-Mar-07 STOCK PRICE OPEN CLOSE 848 840.65 3761.279062 1.83726 -1.3 3678.036138 0.1 3644.48612 2.1 825 772.55 3764.75 3761.893121 11.75 804.1 3759.65 828.37192 2.504017 0.871902 0. The above graph revels that the average stock return is and the market return looking southward.183104 -0.84555 2.62182 4.02522 2.959224 -0.5 831.362595 -0.598613 NIFTY PRICE OPEN CLOSE 3745.35874 0.15 821.194484 -0.40498 -1.924285 0.94769 3.16565 0.815762 0.29147 -6.03567 -0.22738 -4.267733 2.27342 -0.75 797 774.863059 2.1 796.85 787 792.45 3734.1 3788.85 3821.15 3655.72915 1.96123 16.16129 0.757009 0.518841 0.3203 0.403314 VAR X*Y -1.75 3861.55 3768.4199 0.221519 -2.7 3764.876595 25.3 833 840.20243 4.12594 -1.25 796.706454 0.9 3680.55 3611.98868 -2.24311 0.60606 0.85 3718 3717.35 3697.426407 0.756822 -2.2 BETA 0.6 3697.921.95 3818.9 844 833.427 where as the beta value is 0.29672 -0.6 3639.Standard deviation (total risk associated with stock) is 2.918367 -1.219685 3.949078 X^2 3.15 3798.1 800 801.898353 0.678743 -0.54648 5.009852 -7.74487 79.13907 -0.05 3863.035263 1.086422 4.it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock.705286 -1.224652 MARKET X 1.55 791 791.98797 15.6 3735.75 3726.50966 1.716232 3.65 796 791.8463 1.5652 .7604 -1.9 790 791.35 792 787.65 3661.094817 -0.00724 0.5 3576.164008 1.85 792 789.2 3811.85 3627.19375 0.15 798 780.7 775.212833 0.077969 -4.8 797.461338 0.55 3626. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.37809 -0.35 3608.25 3770.36022 2.45 812 820.1 786 788.807881 2.5 812.4 3641.679797 -0.898109 13.5 3875.4115 0.871562 46.633783 2.31515 0.4 3811.5 3577.65 790.468705 1.55 SUM SD TABLE 42 100 STOCK R Y -0.9 3876.9 3643.073583 0.25 3761.65 3726.16726 -2.001272 0.268432 8.47092 2.2 789.

224 where as the beta value is 0.GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 6 RETURNS 4 2 0 Y -2 X -4 -6 3/29 3/27 3/25 3/23 3/21 3/19 3/17 3/15 3/13 3/11 3/9 3/7 3/5 3/3 3/1 -8 DATE GRAPH 42 Standard deviation (total risk associated with stock) is 2. In the month of March this stock is more fluctuating as a comparison to the market price. The average beta is less than one that means this stock is less volatile than the market. The average stock return shows a negative trend. when we compare the market return with the stock return stock return shows a decreasing tendency means capital appreciation of the stock could happened in the last three month .it shows that diversification of this stock would help the investor to eliminate considerable part of risk associated with this stock. The above graph revels that the average stock return is below the market return. Proper diversification of the portfolio will help the investor to eliminate the considerable part of the risk.so it is better to hold the stock for some time and the position of the stock may improve in the nearest future at that time investor can sell off his holding 101 .5986. Here the beta is less than 1 it shows that the low volatility of the price of the stock in comparison with market returns.

05 954 927.7 4080.333311 0.35 921 941.69519 -1.037357 0.97195 -3.23052 3.08297 -0.45 955 916.369063 -3.076779 2.7 4024.407965 -0.32632 -0.1 908.25 980 947.75627 1.45 4052.16917 -1.653089 0.042791 0.944274 MARKET RETURN X 1.48352 -16.7 955 963.3 3911.870882 1.8 3990.45 4102.25273 -0.780203 X^2 1.273084 1.2 4109.328283 1.150565 3.569333 0.45 910 918.995712 25.25 3944.6 4102.4 4090.098729 0.9 4076.1 929.4 4124.65 927 899.9 950.00751 -1.793681 0.794737 0.9 908.9268 -0.4049 5.076414 0.45 4075.10769 -0.6 4089.3 3852.4 3983.7 4148.95598 -0.9 4092.913889 0.25 4007.13161 0.04951 0.314212 -0.5 4084.4 3910.85 4078.699116 NIFTY PRICE OPEN CLOSE 3966.76205 -2.73542 0.55 964.20686 0.343255 -2.037504 0.50777 -4.146183 5.4 4007.224368 0.95 3850.476041 16.75164 0.8 938.45 910 878.85 4082.3 TATA MOTOR 0.35714 -1.4 964.310009 2.062173 0.75 975 954.689953 0.166435 0.3 3933.65 4066.482521 0.4 935 928.036292 -2.470704 7.849475 0.05 4027.072814 0.7 SUM SD TABLE 43 STOCK RETURN Y 3.15 3942.7158 3.15 4089.99785 1.15127 0.33684 -3.75 948.39743 0.86911 -1.57296 1.2 949.55077 2.55678 -1.5 950 957.028617 1.917582 2.75072 0.754953 0.338954 2.830634 -0.45 957.4.4 3933.209346 0.07853 -2.19816 -0.5.89089 0.630421 -0.76932 GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN STOCK AND MARKET RETURNS COMPARISION 4 3 2 1 0 -1 -2 -3 -4 -5 Y DATE GRAPH 43 102 1/30 1/28 1/26 1/24 1/22 1/20 1/18 1/16 1/14 1/12 1/10 1/8 1/6 1/4 X 1/2 BETA TIME DATE 2-Jan-07 3-Jan-07 4-Jan-07 5-Jan-07 8-Jan-07 9-Jan-07 10-Jan-07 11-Jan-07 12-Jan-07 15-Jan-07 16-Jan-07 17-Jan-07 18-Jan-07 19-Jan-07 22-Jan-07 23-Jan-07 24-Jan-07 25-Jan-07 29-Jan-07 31-Jan-07 STOCK PRICE OPEN CLOSE 902.3 .193268 -0.9323 1.05 4126 4090.5 929 911.45 4123.999509 -0.3 3988.05 4147.86888 0.15 3983.24935 -0.1 4066.1 950 937.359954 -0.57733 -0.55 4052.5 934.951434 VAR X*Y 3.3 965 950.

Standard deviation (total risk associated with stock) is 1.94 where as the beta value is
0.699.it shows that diversification of this stock would help the investor to eliminate considerable
part of risk associated with this stock. Here the beta is less than 1 it shows that the low volatility
of the price of the stock in comparison with market returns. The above graph revels that the
average stock return is below the market return. In the month of March this stock is more
fluctuating as a comparison to the market price.

DATE
1-Feb-07
2-Feb-07
5-Feb-07
6-Feb-07
7-Feb-07
8-Feb-07
9-Feb-07
12-Feb-07
13-Feb-07
14-Feb-07
15-Feb-07
19-Feb-07
20-Feb-07
21-Feb-07
22-Feb-07
23-Feb-07
26-Feb-07
27-Feb-07
28-Feb-07

0.784898

STOCK
RETURN
Y
1.974572
-1.08176
0.552516
-0.31961
-2.01976
-1.66667
0.919938
-5.9086
-0.82952
-2.72311
-0.08046
-1.15909
-1.49597
0.332944
-2.93023
-3.37079
2.384146
-2.38886
-2.175
-21.9853
1.979394

NIFTY PRICE
OPEN
CLOSE
4083.4
4137.2
4140.2
4183.5
4193.15
4215.35
4216.55
4195.9
4198.2
4224.25
4232
4223.4
4223.5
4187.4
4187.2
4058.3
4069.1
4044.55
4044.9
4047.1
4046.8
4146.2
4149.25
4164.55
4164.85
4106.95
4107.15
4096.2
4096.65
4040
4046
3938.95
3939.1
3942
3948.05
3893.9
3893.4
3745.3
SUM
SD

MARKET
RETURN
X
1.31753
1.045843
0.529435
-0.48974
0.620504
-0.20321
-0.85474
-3.07843
-0.60333
0.054389
2.456262
0.368741
-1.39021
-0.26661
-1.38284
-2.64582
0.073621
-1.37156
-3.80387
-9.62403
VAR

X*Y
2.601557
-1.13135
0.292521
0.156525
-1.25327
0.338689
-0.78631
18.18922
0.500472
-0.14811
-0.19763
-0.4274
2.07971
-0.08877
4.052035
8.918505
0.175523
3.276467
8.273424
44.82181
3.918002

X^2
1.735884
1.093788
0.280301
0.239842
0.385025
0.041296
0.730583
9.476728
0.364004
0.002958
6.033222
0.13597
1.932673
0.07108
1.912239
7.00038
0.00542
1.881186
14.46945
47.79203

TABLE 44
GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN

STOCK AND MARKET RETURNS COMPARISION
4
2
0
Y
-2
X
-4
-6

DATE

GRAPH 44

103

2/27

2/25

2/23

2/21

2/19

2/17

2/15

2/13

2/11

2/9

2/7

2/5

2/3

-8
2/1

RETURNS

BETA

STOCK PRICE
OPEN
CLOSE
888.8
906.35
919.8
909.85
914
919.05
923
920.05
920.9
902.3
912
896.8
896.8
905.05
930
875.05
874
866.75
874
850.2
870
869.3
880
869.8
869
856
856
858.85
860
834.8
845.5
817
820
839.55
843.5
823.35
800
782.6

Standard deviation (total risk associated with stock) is 1.97where as the beta value is
0.784.it shows that diversification of this stock would help the investor to eliminate considerable
part of risk associated with this stock. There is a huge difference between systematic and
unsystematic risk here virtually no systematic risk associated with this stock when we camper it
with the total risk. Here the beta is less than 1 it shows that the low volatility of the price of the
stock in comparison with market returns. The above graph revels that the average stock return is
well above the market return.

DATE
1-Mar-07
2-Mar-07
5-Mar-07
6-Mar-07
7-Mar-07
8-Mar-07
9-Mar-07
12-Mar-07
13-Mar-07
14-Mar-07
15-Mar-07
16-Mar-07
19-Mar-07
20-Mar-07
21-Mar-07
22-Mar-07
23-Mar-07
26-Mar-07
28-Mar-07
29-Mar-07
30-Mar-07
BETA

STOCK PRICE
OPEN
CLOSE
801
789.05
795
775.4
774.1
739.9
746
726.6
747.5
738.6
750.1
766.85
774.95
757.15
757.25
764.7
766
773.1
722.5
743.65
750
725.95
731.1
748.25
751
771.7
774.25
769.25
772
775.8
781
805.1
806
789.55
745
752.55
750
719.6
728.95
716.45
723
728.2
0.468065

NIFTY PRICE
OPEN
CLOSE
3745.4
3811.2
3811.65
3726.75
3726.5
3576.5
3577.15
3655.65
3661.55
3626.85
3627.25
3761.65
3761.85
3718
3717.45
3734.6
3735.25
3770.55
3768.4
3641.1
3644.9
3643.6
3639.35
3608.55
3611.3
3678.9
3680.35
3697.6
3697.7
3764.55
3764.5
3875.9
3876.75
3861.05
3863.45
3819.95
3818.75
3761.1
3759.15
3798.1
3788.85
3821.55
SUM
SD

TABLE 45

104

STOCK
RETURN
Y
-1.49189
-2.46541
-4.41803
-2.60054
-1.19064
2.233036
-2.29692
0.983823
0.926893
2.927336
-3.20667
2.34578
2.756325
-0.64579
0.492228
3.085787
-2.04094
1.013423
-4.05333
-1.7148
0.719225
-8.64109
2.363793

MARKET
RETURN
X
1.756822
-2.22738
-4.02522
2.194484
-0.94769
3.705286
-1.16565
0.461338
0.945051
-3.37809
-0.03567
-0.8463
1.871902
0.468705
1.807881
2.959224
-0.40498
-1.12594
-1.50966
1.036138
0.863059
2.403314
VAR

X*Y
-2.62098
5.491407
17.78358
-5.70684
1.128349
8.274036
2.677407
0.453875
0.875961
-9.88881
0.11437
-1.98525
5.15957
-0.30268
0.889889
9.131537
0.826538
-1.14105
6.11914
-1.77677
0.620734
36.12403
5.587515

X^2
3.086422
4.96123
16.20243
4.815762
0.898109
13.72915
1.35874
0.212833
0.893121
11.4115
0.001272
0.716232
3.504017
0.219685
3.268432
8.757009
0.164008
1.267733
2.279062
1.073583
0.74487
79.5652

GRAHHICAL REPRESENTATON OF STOCK AND MARKET RETURN

5
4
3
2
1
0
-1
-2
-3
-4
-5

Y

3/29

3/27

3/25

3/23

3/21

3/19

3/17

3/15

3/13

3/11

3/9

3/7

3/5

3/3

X

3/1

RETURNS

STOCK AND MARKET RETURNS COMPARISION

DATE

GRAPH 45

The total risk (standard deviation) associated with the stock is 2.36 and the beta is 0.468 It
shows that diversification of this stock would help the investor to eliminate considerable part of
risk associated with this stock. There is a huge difference between systematic and unsystematic
risk here virtually no systematic risk associated with this stock when we camper it with the total
risk. Here the beta is less than 1 it shows that the low volatility of the price of the stock in
comparison with market returns. The above graph revels that the average stock return is well
above the market return.

The average beta is less than one that means this stock is less volatile than the market.
Proper diversification of the portfolio will help the investor to eliminate the considerable part of
the risk. when we compare the market return with the stock return stock return shows a
decreasing tendency means capital appreciation of the stock could not happened in the last three
month .so it is better to hold the stock for some time and the position of the stock may improve
in the nearest future at that time investor can sell off his holding

105

they are largely venturing out of the country through mergers and acquisitions and the increasing consideration of global players India is a low cost hub of research and development. • Pharmaceutical companies beta value less than one means risk is comparatively low so diversification of portfolio may help the investor to eliminate the controllable risk associated with this stocks .CHAPTER V FINDINGS. That means the systematic risk associated with this stock in that particular months is negative.1 FINDINGS • When comparing the beta value banking companies the average beta greater than one that means the risk associated with those stocks are pretty high and the price of the shares are more fluctuating . CONCLUSION AND RECOMMENDATION 5. • IT companies shares are promising one they are more bound to international risk since most of the IT companies largely depends on the US market any downward trend in the US economy may have a negative impact on these companies shares but for the long term investment this shares are promising one . 106 .increasing strength of Indian middle class largely responsible for this growth. • The stocks of automobile companies are subjected to less risk since the beta is less than one.reddy’s lab and Ranbaxy shows negative beta in the month of March and February respectively.the growth in pharma stock mainly because of the growing strength of the Indian pharmaceutical companies . • The beta value of oil and gas companies is less than one but the price of the stocks are highly fluctuating because of the ups and downs of crude oil price in the international market. • Two stocks Dr.one of the reason for this fluctuation may the inflationary trend in the economy banking shares are more bound to interest rate risk . Stock price of auto companies are growing mainly because of the strong bottom line of these companies .

The investor should analyze the market on a continuous basis which will help them to pick the right companies to invest their funds.the investors should be in a position to interpret the data in the right manner to arrive at important conclusions and investment decision .2 CONCLUSION As a whole the stock market is sometime highly volatile .5.an investor should be in a position to analyze the various investment option available to him and thus minimize the risk and maximize the returns . I hope this dissertation will help the investors as a guiding record in future and help them to make appropriate investment decisions. standard deviation and variance helps the investors in arriving at decision . 107 .it depends upon the investors how he can make use of this in order to get the money which he has put in the market . the beta value.

• Investor should not depend entirely on the past returns as the future is uncertain and the stock market is highly volatile.3 RECOMMENDATION • Based on the finding derived at . • In the pharma sector I would suggest you Dr. 108 .5. • In my view InfoTech shares are more volatile next to banking investment in info shares could be more riskier since Indian IT companies are more service based rather than product based so anybody can enter in to that sooner or later but the advantage of Indian IT companies are the talent pool available in India • When an investor opts to enter the stock market he should first gather sufficient information about the type of investment options available to him • The investor should be in a position to decide where and how much of funds are he ready to invest in particular security. • He should not follow the foot of others while investing because usually people tend to go by the trend. • An investor must be in a position to judge which is the right time to enter into the market and quit the market. • The investor must be in a position to determine the degree of risk involved and then invest in any security.risk less investment can be made in the pharma stocks .reddy’s lab and Ranbaxy is the best one anybody can blindly invest in that shares return is must.they are volatile but still the risk associated with that stocks are less . • He should diversify his investment portfolio so that he is exposed to minimum risk.

com 109 .com www. Martin J Gruber –fifth edition –john Wiley & sons -2002 Investment management –V A Avandi-fifth Edition –Himalaya publication house 2003 JOURNALS The ICFAI journal of financial risk management –vol 12 issue 7-June 2006 Business week –vol 26 issue 41 February 2007 The ICFAI journal of applied finance vol 8 issue 8 august 2005 WEBSITES www.bse_india .vikipidia.com/indian economy www.BIBLIOGRAPHY .com/equity www.nse_india .com / equity www.economywatch. Ronald j Jordan –sixth edition –prentice hall of India private ltd 2000 Modern portfolio theory and investment analysis –Edwin J Elton.indiainfoline. BOOKS Investment management –Preeti Singh-tenth edition –Himalaya publication 2002 Investment analysis and portfolio management –Prasanna Chandra-second edition –Tata McGraw hill publishing company -2005 Security analysis and portfolio management –Donald E Fischer.

110 .

Sign up to vote on this title
UsefulNot useful