Project Report On SECURITY ANALYSIS A STUDY ON SELECTED INDUSTRIES A Project Report Submitted to OSMANIA UNIVERSITY in the partial fulfillment

for the award of the degree in Master of Business Administration. Submitted by N.SHRAVAN KUMAR (011-06-0123) 2006-08.

Vivekananda School of P.G. Studies. Sri Nagar colony, Pangagutta. Hyderabad.

CERTIFICATE BY THE GUIDE

This to certify that the M.B.A Project Report titled “SECURITY ANALYSIS –A STUDY ON SELECTED INDUSTRIES” submitted in partial fulfillment for the award of post-graduate Degree in “Master of Business Administration” from Osmania University, Hyderabad was carried out by Mr.RAGHUNADH under my guidance, during the academic year 2006-08.

Signature of the Head

Signature of the Guide

ACKNOWLEDGEMENT I take this opportunity to express my gratitude to all, who have made it possible for me to accomplish this project work. I express my sincere thanks to my guide Mr. RAGHUNADH for giving me valuable guidance through out the project. The advice and suggestions given by him, had immensely helped me to gain working knowledge on the assignment under taken, and he has also taken personal care in helping me through out the project work. At the same time I thank all my friends who encouraged and helped bringing out my project successfully. My parents have been a constant source of the support through out my life. This work would not have been complete but for the solace they provide to me whenever, I ran into difficulties. No words can explain my gratitude to them.

DECLARATION

I hereby declare that the project entitled “SECURITY ANALYSIS-A STUDY ON SELECTED INDUSTRIES” is my original work submitted to the department of Business Management of Vivekananda School of P.G Studies, from O.U is a bonafide work undertaken by me and is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before.

N.SHRAVAN KUMAR Hall Ticket No.011-06-0123

Auto. PARTICULARS INTRODUCTION • • • • • • • • • Importance of investment Meaning Avenues of investment Driving forces of investment Objective of the study Scope of the study Limitations of the study Assumptions of the study Research methodology PAGE 6-17 2.T. Auto.NO 1.T & Pharma Industries Co-efficient of variation Comparison on the basis of C.TABLE OF CONTENTS SL.V Bank. Auto. I. Pharma Industries & Industry wise 17-41 3. I. ANALYSIS OF DATA • • • • • • • Return Measurement of return Returns for Bank.T & Pharma Industries Fluctuations in the prices of the selected shares in respected industries Construction of index for Bank. CONCLUSIONS AND RECOMMENDATIONS 42-44 . I.

Savings are invested to provide a hedge or protection against inflation. Thus. Hence savings are invested in assets depending on their risk and return characteristics. The objective of the investor is to minimize the risk involved in investment and maximize the return from the investment. He expects to get back the money along with interest at a future date. This is also an investment (suppose they paid 5000/-. if inflation it at an average annual rate of10percent. Our savings kept as cash are not only barren because they do not earn anything. Now they are staying in rent house per year 6000/- .” “a young couple makes a down payment on their first house. Savings kept as cash are barren and do not earn anything. MEANING:Investment means “postponed present consumption” “it may mean many things to many persons.BIBILOGRAPHY INTRODUCTION IMPORTANCE OF INVESTMENT: - 45 An investor has various alternative options (avenues) of investment for his savings to flow to. he may consider his loan as a n investment. but also loses its value to the extent of rise in prices/ thus rise in prices or inflation erodes the value of money.” “Another person may have purchased one kg of gold for the purpose of price appreciation and may consider it as an investment. If the investment cannot earn as much as the rise in prices. the real rate of return would be negative. If one person has advanced some money to another. then the return from an investment should be above 10 percent to induce savings to flow into investment.

If they spend that 500/.2 O 60 100 Co Co is the current year consumption axes he can consume high as 100 low as 0. So it is also postponement of consumption) Below diagram explains the perfect mean how an investment is postponement of consumption 103 (Hr has a opportunity of getting 3%interest if he has invest) 41.2/-“so he got more.for rent they may get better house than it for rent.he got 41.” AVENUES OF INVESTMENT:• • • • • Corporate securities Deposits in banks and non-banking companies UTI and other mutual fund schemes Post office deposits and certificates Life insurance polices . According to the diagram he consumed 60/.and he invested remaining40/. C1 is the next year consumption high as 103&low as 0.

THE PROCESS OF INVESTMENT: The investment process involves a series of activities leading to the purchase of securities or other investment alternatives.. The investment process can be divided into five stages. . there are some main driving forces that cause investment in any society like • • • • • • • • Retirement plan Avoidance of taxation Tempting high rates of interest High inflation and resultant expectation of increase in the monetary return Hike in income Availability of a large number of investment avenues Legal safeguards Existence of financial institutions to encourage savings etc.• • Provident fund schemes Government and semi-government securities DRIVING FORCES OF INVESTMENT:Though there are many factors that influence the decision of investing in assets.

Investible funds The entire investment procedure revolves around the availability of investible funds. The essential ingredients of the policy are the Investible funds. If the funds are borrowed. the investor has to be extra careful in the selection of investment alternatives. .1) 2) 3) 4) 5) Farming of investment policy Investment analysis Valuation Portfolio construction Portfolio evaluation Investment Process Investment Policy Analysis Valuation Portfolio Construction Portfolio Evaluation -Investible fund -Objectives -Knowledge -Fundamental -Technical -Efficient market Hypothesis -Intrinsic value -Future value -Diversification -Selection& allocation -Appraisal -Revision INVESTMENT POLICY The government or the investor before proceeding into investment formulates the policy for the systematic functioning. The fund may be generated through savings or from borrowings. The return should be higher than the interest he pays. objectives and the knowledge about the investment alternatives and market. Mutual funds invest their owner’s money in securities.

the investment alternatives range from security to real estate. These demand and supply forces in turn are influenced by a number of fundamental factors as well as certain psychological or emotional factors. The knowledge about the stock exchanges enables him to trade the stock intelligently. Many of these factors cannot be quantified. industry and company. The mode of operation varies among BSE. The technical analyst therefore concentrates . It is based on the basic premise that share price is determined by a number of fundamental factors relating to the economy. whereas the primary objective of the risk averse is the safety of the principle. the risk and return associated with investment alternatives differ from each other. The investor should be aware of the stock market structure and the functions of the brokers. Brokerage charges are also different. the securities to be bought have to be scrutinized through either Fundamental analysis or Technical analysis or Efficient Market Hypothesis theory. Technical Analysis: According to technical analysis the investors believe that share prices are determined by the demand and supply forces operating in the market. Knowledge The knowledge about the investment alternatives and markets plays a key role in the policy formulation. SECURITY ANALYSIS After formulating the investment policy. The tax sheltered schemes offer tax benefits to the investors.Objectives The objectives are framed on the premises of the required rate of return. need for regularity of income. Investment in equity is high yielding but has more risk than the fixed income securities. risk perception and the need for liquidity. The risk taker’s objective is to earn high rate of return in the form of capital appreciation. Fundamental Analysis: Fundamental analysis is really a logical and systematic approach to estimating the future dividends and share price. and OTCEI. NSE.

VALUATION The valuation helps the investor to determine the return the return and risk expected from an investment in the common stock. the advocates of the new theory assert that share price movements are random. The intrinsic value of the . technical factors and psychological factors. Fundamental analysis seeks to evaluate the intrinsic value of securities by studying the fundamental factors affecting the performance of the economy. He claims that by examining past share price movements future share prices can be Accurately predicted. From the results of several empirical studies on stock price movements.on the movement of share prices. industry and companies. which questions the assumptions of technical analysis. There is a third theory on stock price behaviour. The behavior of stock prices is studied with the help of different methods such as fundamental analysis and technical analysis. Random Walk Theory: Stock prices are determined by a number of factors such as fundamental factors. The new theory came to be known as Random Walk Theory because of its principal contention that share price movements represent a random walk rather than an orderly movement. It tries to study the patterns in stock price behaviour through charts and predict the future movement in prices. The new theory questions this assumption. The basic assumption in technical analysis is that stock price movement is quite orderly and not random. Technical analysis is the name given to forecasting techniques that utilize historical share price data. The rationale behind technical analysis is that share price behavior repeats itself over time and the analyst attempts to drive methods to predict this repetition. Technical analysis believes that the past behaviour of stock prices gives an indication of the future behaviour.

.share is measured through the book value of the share and price earning ratio. Both debt instruments and equity are combined to complement each other. Debt and equity diversification Debt instruments provide assured return with limited capital appreciation. The real worth of the share is compared with the market price and then the investment decisions and made. The stock market analysts have developed many advanced models to value the shares. Common stocks provide income and capital gain but with the flavour of uncertainty. The information technology stock yields high return and capital appreciation but their growth potential after the year2002 is not predictable. Banking industry shares may provide regular returns but with limited capital appreciation. Simple discounting models also can be adopted to value the shares. There are several ways to diversify the portfolio. Future value Future value of the securities could be estimated by using a simple statical technique like rend analysis. industry diversification is needed and it reduces risk. The portfolio is constructed in such a manner to meet the investor’s goals and objectives. A diversified portfolio is comparatively less risky than holding a single portfolio. The investor tries to attain maximum risk. The investor should decide how best to reach the goals with the securities available. The analysis of the historical behaviour of the price enables the investor to predict the future value. Thus. Towards this end he diversifies his portfolio and allocates funds among the securities. CONSTRUCTION OF PORTFOLIO A portfolio is a combination of securities. Industry diversification Industries’ growth and their reaction to government policies differ from each other. Diversification The main objective of diversification is the reduction of risk in the loss of capital and income.

The low yielding securities with high risk are replaced with high yielding securities with low risk factor. Selection Based on the diversification level. The developments in the economy. Fundamental analysts suggest the selection of financially sound and investor friendly companies. industry and company analyses the securities have to be selected. Revision: depends on the results of the appraisal. The efficient management calls for evaluation of the portfolio this process consists of portfolio appraisal and revision.Company diversification Securities from different companies are purchased to reduce risk. To keep the return at a particular level necessitates the investor to revise the components of the portfolio periodically. The variability in return of the securities is measured and compared. Appraisal The return and risk performance of the security vary from time to time. industry and relevant companies from which the stocks are bought have to0 be appraised. Selection of securities and the allocation of funds and sales the construction of portfolio. The appraisal warns the loss and steps cab be taken to avoid such losses. Funds are allocated for the selected securities. EVALUATION The portfolio has to be managed efficiently. Technical analysts suggest the investors to buy securities based on the price movement. .

SCOPE OF THE STUDY: - This scope of study is limited to few selected industries. This study is analysis of previous twelve months (Jan-06 to Dec-06) data relating to prices of shares in Bombay Stock Exchange only. LIMITATIONS OF STUDY: • This study is limited to some selected industries . Automobile.OBJECTIVES OF THE STUDY: - • • • • To ascertain the return both firm wise and industry wise as a whole To Know the risk factor in the firm and Industry as a whole To know the fluctuations of the security prices of the selected firms. Automobile industry and 12 companies from banking industry. only some are selected. To compare Industry index with BSE-200 Index in various aspects. In those industries. They are 6companies each from pharmaceutical. I. & Banking Industry. Those are Pharmaceutical. Information Technologies..T.

from web sources and periodic investment journals. Price change is only taken into consideration. Information technologies &Automobile) • • Dividend is not considered in the calculation of Return. and so secondary data has been generated from secondary sources.(Pharmaceutical.e. • • • RESEARCH METHODOLOGY Data Collection: Since the primary data is not available within the time permitted. Period of study: - . The investors give preference to the securities that have given positive returns previously. Situations in stock market are always subject to change. For calculating the returns of each industry this study assumes that the indexes are taken in to consideration. ASSUMPTIONS OF THE STUDY: • This study assumes than an investor purchases the share at the beginning of the month and he sells the share at the end of the month. Banking.. Investors make the decision on the basis of previous returns and risks that are unsystematic risks. i.

Tools for evaluation: Statistical tools for evaluations:      Sample selection: Samples selected are listed in BSE-200 SENSEX. The total industries involved in BSE-200 are 18 Industries. LISTED Pharmaceutical: Information Tec: Automobile: Banking: 10 10 10 20 SELECTED 6 6 6 12 PERCENTAGE 60 60 60 60 Standard deviation (δ)(Risk) Variation δ2 (Unsystematic Risk) Co-efficient of variation (CV) Average Index (simple avg.This study is conducted for twelve months.. i.e. Randomly four Industries are selected for this study. from January 2006 to December 2006. Of four selected industries 60% of companies are selected in each industry. method) .

Since the return on years many methods were adopted for quantifying returns.ANALAYSIS OF DATA RETURN: A major purpose of investment is to get a return or income on the funds invested. dividends may be anticipated. That’s why I calculated return from the prices of the shares only. The most important characteristics of financial assets are the size and variability of their future returns. The investor may expect capital gains from some investments and rental income from some investments and rental income from house property. Measurement or Returns:The purpose of investment is to get a return or income on the funds invested in different financial assets. Return = (P1 – P0)/P0 . In this study I considered only prices but not dividend in the calculation return because the investors main motive to invest in shares is make the profit from changes in prices of shares. Return may take several forms. On a bond an investor expects to receive interest. On a stock.

9 170.5 4.5 -8.06 738 773.91 Feb-06 890 877.00 1.004.99 177 193.6 Mar-06 87.8 233.65 40.35 -1.2 -11.35 234.08 -1.46 334.95 62.00 615.15 15.18 740 795.15 89.00 835 740.81 240 235.40 9. COMMERCE OPEN CLOSE Return OPEN CLOSE Return 710.15 -13.05 10. Date OPEN CLOSE Return OPEN CLOSE Return Jan-06 909.1 Andhra Bank Date OPEN CLOSE Jan-06 93 92.6 8.9 202.09 270 257 -4.41 8.9 736.25 Oct-06 94.6 ORIENTAL BANK OF HDFC Bank Ltd.66 -8.05 -4.35 Sep-06 87.55 7.8 886.05 237.5 93.9 73.Where: P1 = Closing price of the share P0 = Opening price of the share In this Chapter I show the returns for each unit wise and industry wise. Returns for banking industry: TABLE NO.03 912 1.017.5 -5.05 853.15 251.05 7.2 State Bank of India ICICI BANK Ltd.5 95.45 Dec-06 90 86.1 240.53 586.97 258.15 6.05 328.75 767.81 1.94 740 791.8 Apr-06 81.9 -4.45 6.8 -2.10 0.19 1.3 Nov-06 92.45 -7.84 UTI BANK Ltd. OPEN CLOSE Return 292.15 80 May-06 83 72.42 -12.4 -15.27 271.15 7.32 13.65 9.069.5 Jul-06 64.85 Feb-06 93.25 609.73 765 826.78 TABLE NO.4 87.94 790.27 -2.9 80.44 610.87 17.05 -2.93 -3.00 337.118.95 245.00 1.9 762.66 247 226.95 -14.71 .24 194 271.5 250.86 -1.30 Return -0.15 3.25 Jun-06 72.91 200.16 -6.75 -4.2 -1.9 Aug-06 74.41 840 926 10.85 87.44 165 176.85 -1.122.

5 266.2 Apr-06 96.92 BANK OF BARODA Return OPEN CLOSE Return -0.05 596.85 18.05 355.8 -13.5 Jul-06 201.2 Mar-06 286.00 90.245.3 229.15 2.00 122.75 -0.00 -5.3 Mar-06 102.1 INDIAN OVER.15 Dec-06 301 276.00 1.88 14.75 474.1 -6.25 133 124.50 116.25 590.35 -10.00 488.15 14.80 107.00 96.66 -9.9 294 2.25 Feb-06 251 286.00 479.50 14.18 619.00 62.97 -5.65 -4.8 297.45 890.05 8.35 347.50 342.00 592.05 11.05 285.55 Feb-06 114.34 130.Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 880 968.35 15.2 UNION BANK OPEN Return OPEN Jan-06 243 249.2 11.05 487.85 132.57 13.00 111.50 699.20 437 405.314.84 57.85 -0.7 43.05 551.40 554.98 5.15 -19.61 0.40 102.05 913.30 91.40 -16.5 52.314.65 125.00 84.00 968.25 10.40 2.85 871.24 122.65 831 727.81 8.44 42 47.55 132 -0.17 53 53.00 -10.30 10.3 VIJAYA BANK CLOS Return -0.02 6.69 -7.24 0.15 51.75 297.95 254.90 14.5 221.2 57.95 441 471.85 -10.095.00 605.05 -9.70 128.16 1.15 27.65 -2.1 196.45 47.05 117.05 May-06 103.80 121.65 2.00 116.25 536.17 Canara Bank CLOS TABLE NO.4 OPEN CLOSE Return 123.98 12.50 1.02 19.00 298.65 9.20 433.04 -8.00 272.10 123.55 Apr-06 267.88 12.21 40 41.75 136.85 342.49 -8.53 61.25 -13.50 -10.77 124.69 128.76 327.38 -18.80 136.01 -5.00 777.12 57 57.52 8.85 -5.05 930 1.2 May-06 256.2 -8.48 10.80 266.4 810.50 -5.25 -18.95 -4.80 129.95 Aug-06 198.53 472 433.00 1.02 57.48 .00 585.75 0.10 436.65 102.95 99.00 330.00 122.8 465.30 131 133.40 -10.55 53.8 39.9 Jun-06 232 200.23 126 114.90 379.87 10.2 Nov-06 297.05 Sep-06 223 284.41 -8.45 45.00 101.81 -0.77 119.011.1 -5.24 52.00 589.5 129.45 356.00 380.26 19.095.90 0.11 8.4 61.00 1.00 292.028.68 108.36 20.7 Oct-06 287.5 917 839 734 800 928 1.25 -10.10 700.90 10.76 4.00 875.65 -1.57 129.73 -2.99 468.40 -4.36 16.30 -11.66 466 441.00 545.42 47.24 -8.55 56.05 776.38 -13.30 1.20 -2.05 469.BANK PUNJAB NB OPEN CLOSE Return OPEN CLOSE Jan-06 94.9 -6.

64 7.15 174 202.70 8.68 Dec-06 7.42 23.28 Nov-06 6.75 526.124.769.15 173.80 -8.4 BANKEX Date Open Close RETURN Jan-06 5.252.245.486.06 7.70 -2.73 2.00 110.55 380.44 May-06 5.22 Sep-06 5.4 102 110.75 506.00 109.179.55 Feb-06 5.772.30 -6.311.2 469.8 552 325.95 329.00 118.78 7.8 101.69 -1.4 380 465 527 524.50 119.5 (AVERAGES) HDFC BANK UTI BANK AB OBC SBI ICICI CANARA .88 Jul-06 4.79 -8.08 5.9 110.Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 86.20 Mar-06 5.40 4.73 -1.15 118.038.781.64 Apr-06 5.254.180.62 3.65 162.39 5.16 115.10 89.06 15.40 118.90 Oct-06 6.89 Aug-06 4.044.01 11.00 84.36 TABLE NO.9 142.73 29.56 4.51 TABLE NO.41 4.87 -9.45 544.16 -1.98 6.09 5.348.267.183.14 5.301.085.62 13.95 207.204.00 92.89 2.21 6.41 -0.00 84.269.97 414.265.22 18.15 110.14 10.88 5.71 10.484.24 1.95 -21.55 15.87 13.00 90.5 141 162.19 Jun-06 4.10 15 7.91 7.772.79 -0.6 200.05 6.9 -11.308.49 2.65 92.2 518.

When it comes to the lowest returns Vijaya Bank (-2.73) remained in the forefront. the returns remain highest in the month of September 2006(13.65 PNB 0.95 -0.90) and the lowest in the month of May2006 (-9.19). .64 0.e. The average return of State Bank of India is closely related to the average return of BANKEX average return. Totally eight banks are noted less average return than BANKEX and remaining Four banks are noted high average return than it. As per the BANKEX given by BSE.55.92 BANKEX 3. When overall performance i.23 3. The above table is particularly concerned with the returns of above – mentioned companies.84 4.12 4. Mahindra&Mahindra Ltd.6 Ashok Leyland Ltd.46 3.73 1.19 UB -0.38 BOB -0. Bajaj Auto Ltd.55 VIJAYA IOB -2. average return is taken in to consideration UTI Bank (4.-0.09 By and large. In the course of the study it has been revel that the highest return with respect to Oriental Bank of Commerce took place in the month of September 2006 to the tune of 40.64) reached the first position.02 In contrast to this the lowest return with respect of Punjab National Bank took place in the month of June2006 to the tune of –21. Returns for Automobile Industry: TABLE NO. this study relates to twelve companies with a period of twelve months.

14 629 590.1 34.69 2.00 2.5 -6.015.180.25 -1.51 Mar-06 886 888.35 3.45 Feb-06 865 886.72 2.25 437 405.700.601.14 5.12 2.9 -6.13 3.75 3.014.73 Apr-06 5.5 4.15 -0.85 -1.95 -4.62 465 526.00 2.040.62 524.42 867.00 2.85 -3.9 774.16 TABLE NO.85 9.44 959 789.30 441 471.515.40 19.05 9.998.618.746.25 44 -2.23 5.697.53 Feb-06 4.5 1.16 527 518.00 2.76 Nov-06 44.68 590.15 -2.4 -1.25 4.51 4.672.548.45 0 801 739.91 Returns 5.99 10.99 TATA MOTOR LTD OPEN CLOSE Returns 650 709.1 827.15 -0.11 May-06 863 770.15 14.4 380.7 -17.2 3.7 AUTO INDUSTRY DATE OPEN CLOSE Jan-06 4.67 850 862.49 Sep-06 714.34 Oct-06 778.45 794.04 3.93 826 905.015.625.79 2.8 544.322.154.3 588.64 2.75 23.15 28.9 45 12.3 631.45 5.00 2.18 3.9 -8.07 Feb-06 30.506.9 39.6 14.65 39.08 567.83 622 621.2 42.Date OPEN CLOSE Returns Jan-06 31.00 2.00 2.5 40.95 30.95 -8.75 -4.73 Dec-06 43 45.825.85 472 433.80 552 506.5 1.82 652 680.65 -9.55 14.75 2.30 Aug-06 709.775.65 -4.2 6.12 591 649.5 9.25 6.15 627.55 -0.736.35 14.70 6.473.05 -8.2 -11.05 -8.95 325.251.55 329.26 634 609.55 -21.00 2.50 9.1 -25.70 8.65 737 845.87 Nov-06 762 742.13 May-06 52.3 -5.7 720.00 2.40 Aug-06 34.68 Mar-06 5.7 38.69 466 441.26 Apr-06 899.46 OPEN CLOSE Returns 512 558.68 Jun-06 780 791.62 .59 Mar-06 38.3 1.47 Sep-06 39.85 4.52 832 809.7 -3.42 380 469.2 15.12 710 814.00 2.05 3.3 9.8 -10.07 790 821.998.25 24.59 2.6 13.4 -7.457.65 794.9 844.4 -2.67 PUNJAB TRACTORS LTD OPEN CLOSE Returns 468.3 0.55 -3.33 2.70 HERO HONDA MOTERS Date OPEN CLOSE Returns Jan-06 860 856.012.58 Jul-06 38.02 OPEN CLOSE Returns 2.55 Apr-06 40.8 465.37 686 782.2 13.05 1.7 52.736.43 937 950.744.97 4.20 11.00 2.74 Jun-06 38 37.54 Dec-06 740 762.355.70 815 932.1 6.785.90 -9.71 2.5 756.644.00 3.75 -7.72 815 900.751.47 Jul-06 795 705.26 639.65 -2.25 10.45 -1.78 Oct-06 45.91 2.55 8.23 414.

.74 respectively.50 -13.777.54 4.22 5.321.41 -0.357.71 4.380.42 -0.13 H.81 According to this industry six companies have been taken for the purpose of analysis.13) has the highest return and Hero Honda Motors (-1. .518.74 -6.476.812.85 5.03 5.05 4.477.98 4.70) and the lowest return was in the month of May 2006 (13.75 4.63 5. Ashoka Leyland has been seen as the only company to secure both highest and lowest returns i.57 BAJAJ 1.29 10. Highest return of this industry for the taken period was in the month of February 2006 (10.51).) In the above table show that BAJAJ AUTO average return is closely related to the average return of AUTO INDUSTRY. Overall three companies are noted less average return and two are noted high average return than INDUSTRY average return.4 0.72 5.95 5.83 M&M 4.563.M PUNJAB TATA -1.H.05 5.87 4.58 4.May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 5.51 -1.837. When it comes to the average performance i.45 8.70 TABLE NO. (This Industry returns are calculated from the AUTO INDEX. which is maintaining by the BSE.4) hold the lowest.e.e.13 and-25.83 2.28.949.8 (AVERAGES) AUTO INDEX 2.92 3.18 A.944.L.753.L 3. average returns Mahendra&Mahendra (4.365.06 4.371.321.

76 1.00 2.80 540 598.00 3.5 299.55 539 449.00 2.660.908.3 445.42 2.00 3.32 -46.55 0.T.653.52 5.094.81 0.41 -4.84 7.55 3.000.95 252.85 362.37 -0. OPEN CLOSE 3.77 17.92 2.8 297 250.70 2.82 18.65 Return -0.9 5.64 -1.240.9 520.42 Return -4.50 3.65 8.80 516 525.45 602 604.077.35 362.9 525.71 -8.15 296.200.84 350.5 366 365 Wipro OPEN 464 530 520 563 545 452.46 -4.828.15 HCL INFOSYS 490 517.6 367.85 3.100.70 4.109.60 2.00 2.96 2.185.05 2.35 347 330.69 0.00 2.75 444.00 2.51 1.180.32 1.12 5. Industry:TABLE NO.842.63 -15.85 513.95 538.70 2.25 558.77 CLOSE 529.50 POLARIS SOFTWARESATYAM .879.01 -2.40 -4.4 304.00 2.15 2.890.808.807.950.9 NIIT OPEN 292.20 -1.75 491.177.006.I.10 18.4 305.1 1.91 30.3 Return 14.847.69 1.26 13.00 1.980.ltd.90 524.95 10.46 13.00 1.8 514 Infosystech.25 345.26 -17.35 1.3 331 334 339.00 1.72 3.825.90 Date Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 CLOSE 290.

06 -46.84 TABLE NO.45 -11.2 109.37 -1.2 117.57 SATYA POLARI M S BSE IT Avg.59 -22.24 7.1 691.32 Return 0.57 -17.32 HCL -3.76 117.2 -3.86 .15 711.92 3.23 -6.33 -9.5 855 762.749.40 1.22 -9.63 10.56 118.4 755.T.45 27.7 748 768.80 2.01 119 183 3.5 130.84 -0.3 129.87 10.34 2.63 7.33 1.25 -10.706.55 459. -2.11 I.5 163.25 483.749.17 74.034.2 759.75 121.55 146 129.674.63 5.71 4.21 TABLE NO.48 Feb-06 3.55 109.67 3.55 163.5 144.048.9 700 715 753 810 826 441 460 CLOSE 746.15 8.32 Mar-06 3.19 122.67 4.89 Close 3.98 109.7 8.95 CLOSE 118.2 164.Date Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 OPEN 274 244 176 184 164 158 131 140.34 89.9 85.55 440.2 112 117.14 5.34 -7.5 -5.53 -8.29 4.1 -11.60 Jun-06 3.743.5 164.95 Return 0.68 112.046.50 -11.81 13.65 -28.65 769.702.10 (AVERAGES) NIIT 5.89 Apr-06 4.744.30 4.33 98.39 May-06 4.92 40.18 111 130.642.95 73.45 LTD CLOSE Return OPEN 244.INDUSTRY Date Open Jan-06 3.2 818.20 3.90 2.85 Return -10.5 175.59 OPEN 740.25 808.86 132.5 16.030.51 INOFSY WIPRO S 2.6 -17.45 849.60 31.95 98.98 1.13 -1.3 164.28 132 159.55 172.75 141.2 -10.65 155.

98 5.10 show that Polaris average return is closely related to the average return of IT INDUSTRY.13 4.75 5. was noted higher return for the month of December 2006 as 40.91 4.71 3.56 5.83 .34 8.408.57.42 4. Over all only TWO companies are more than the Industry avg.38) and the lowest return was in the month of May 2006 (-9.393.56 4. Highest return of this industry for the taken period was in the month of October 2006 (9.943.130.828.3 -0.61 4. which is maintaining by the BSE) According to the average return NIIT was noted highest return as 5.77 According to this industry six companies have taken to analyze.22 5.59 and Satyam was noted lower return for the month of October 2006 as –46. Overall Polaris Software Ltd.107.12 AUROBINDO PHARMA RANBAXY Ltd. (This Industry returns are calculated from the IT INDEX.750.37 3.277.37 Date Jan-06 CIPLA Ltd.4 399. was noted lowest return as –3.272.38 5. Pharmaceutical Industry: - TABLE NO. OPEN CLOSE Return OPEN CLOSE Return 364. OPEN CLOSE Return 445 441.1 9.68 2.66 4.67.77 2.821.951.286. In the above table No. returns.52 413 538.Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 3.51 and HCL Infosystems Ltd.45 30.98).71 9.

65 126 120.95 1.13 (AVERAGES) STERL WOCKHARD RANBAXY AUROBHINDHO Dr.84 257.26 -7.435.51 Dr.31 CIPLA -1.7 626 554.95 446.7 372.01 404.92 6.389.64 STERL BIOTEC OPEN CLOSE 123.19 5.00 1.45 8.7 166 192.148 Oct-06 731 748.55 411.85 -0.95 504 412.8 111.2 120 105.77 8.48 261.95 125.68 21.8 380.431.9 429.90 Dec-06 755 811.85 -3.15 -19.85 15.34 -8.55 Feb-06 1.25 617.96 376.9 581.273.7 364.9 705.34 Jul-06 1.8 -60.25 4.2 7.7 401.45 356.08 540 560 682.75 723.8 5.4 373.80 490 513.85 8.55 1.04 233 215.6 121.9 167.85 12.29 510.05 720.9 229.7 -2.302.62 -3.00 -8.15 372.44 400 431 435.92 665 260.35 582.4 -6.3 1.1 120.36 -13.1 483.3 391.33 Nov-06 709 750.77 368.396.5 122.8 628.45 682.5 124.7 -11.75 364.9 25.65 -1.69 Aug-06 1.98 INDEX 1.92 35.15 145.82 -16.40 -18.35 145.00 1.56 15.35 122.22 May-06 1.2 123.6 3.5 8.54 0.119.38 30.76 515 506.274.55 104 110.05 0.35 390 372.29 Apr-06 1.81 Mar-06 1.54 -3.3 236 9.40 -6.95 9.06 264 253.65 624.60 13.95 19.1 4.34 4.25 388 342.19 -3.5 -47.93 TABLE NO.62 -4.8 388.9 262.07 -20.85 399.60 Sep-06 723 731.87 1.5 734 592 586 626 625 630 614.37 Jun-06 1.450. Return OPEN CLOSE Return 1.357.95 119. Date OPEN CLOSE Return Jan-06 986 1.91 251 262.30 9.8 439.05 2.26 446 360.85 7.18 -2.38 216.125.9 106 102.25 -12.5 350.3 125.33 0.REDDY'S BIOTEC T 0.420.40 -0.68 6.22 4.299.375.35 0.14 8.5 -13.15 2.95 5.2 -4.85 4.95 401.REDDY'S LABRATORIES Ltd.Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 441 551.09 445.6 472.67 .11 236 249.5 360 374 406 435.78 263.50 1.4 609 619.25 -11.66 -2.55 6.65 5.8 -7.15 552 661.00 1.95 -3.19 0.15 250.4 431.54 342.85 406.80 -1.5 WOCKHARDT Ltd.

42 -8.94 -14.08 3. both individual and institutional.59 3.14 PHARMA INDEX OPEN CLOSE Returns 3. According to the average return AUROBINDO Pharma Ltd.99 3.22 2. Overall STERL.136.867.792. Investors.227.290.858.72 3.90 3.132. was noted lowest return for the month of February 2006 as –60.78 7.73 3.387.78.87 3.553.720.05 1.77 3.32 3.720.61 2.TABLE NO.54 and Wockhardt was noted lowest return as-2. Was noted highest return for the month of November 2006 as 35.44 3.973.93 Date Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 According to this industry six companies have taken to analyze.13 FLUCTUATIONS IN THE PRICES OF THE SELECTED SHARES IN RESPECTED INDUSTRIES: Market indexes have always been of great importance in the world of security analysis and portfolio management.41 3. People from different walks of life use and are affected by market indicators.76 3.50 9.549.14 3.60 -1.10 8.40 3. use the market index as a benchmark against which they evaluate the performance of their own or Institutional portfolio.630.538.69 3.84 0.543.07 3. Highest return of this industry for the taken period was in the month of August 2006 (9.97 3.95 3.48 3.234.35 and the Cipla Ltd.31 3.103. was noted highest return as 4.52 3.290. The technicians or the .641.680.73).02 3.54 3.40) and the lowest was in the month of May 2006 (-14.65 6.894.684.37 3.416.

Those are • • • Simple average method Market capitalization Method Free-float Capitalization Method The construction of index in simple average method:= (Simple average on the day of cons. They simply not only tell the movement of share prices but also reflected by the weight of those shares. to analyses as well as forecast business cycles and to correlate stock market indexes to economic activities.chartists often base their decisions to buy and sell on the patterns emerging out of the time series data of market indexes. So the investor should have the highest degree in analyzing this index. So. The index is just an indicator of market and did nothing to the formation of decision of selecting the investment or portfolio. In general stock exchanges are using some methods to construct indexes. In this study to analyses the fluctuations in the prices of shares for selected companies in the selected industries index has prepared in the simple average method with the selected companies for the period of thirteen months. /simple average on base day)*100 Example: DJIA . a high increase in share price of a minor share with a small share holding will not affect the market. Even the economists and statisticians use stock market indexes to study the trend of growth patterns in the economy.

3 883.) 180 200 130 270 195 164 130 90 90 150 115 97 A B C D Average Index Points 100 110 85 180 119 100 The prepared industry indexes are based on the selected companies for the selected period.15 Date Jan-06 Feb-06 Mar-06 ANDHRA 92.925 260.025 ICICI 597.) 150 105 80 220 139 117 Day3 Day4 (Rs. Below mentioned indexes are prepared in this study.) Day2 (Rs. TABLE NO.75 OBC 260.) (Rs.975 755.125 UTI 314.Industry Index (iv) Pharma Industry Index Construction of Index for Banking Industry:The Base period of Banking index Jan-2006 The base points of banking industry index are 100 The Banks involved in the bank industry index are thirteen randomly selected banks from BSE200 index.975 246 237.675 CANARA 246.075 268.55 604.Securities Day1 (Rs.575 276.7 .35 HDFC 736.575 331.7 612.925 SBI 898.T.6 924.2 341. (i) Banking Industry Index (Bankex) (ii) Auto Industry Index (iii) I.725 751.975 84.

075 738.36 333.15 129.6 INDEXPO AVG .875 209.22 .025 53.1 227.025 865 978.8 424.Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Date Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 80.63 409.2 521.6 122.8 235.5 1279.536 330.6 185.825 91 100.475 941.125 570.625 67.725 69.69 134.2 370.1 48.875 91.825 591.75 642.675 125.37 373.775 795.175 453.575 185.25 261.85 338.15 1053.8 88.625 287.875 495.9 90.525 52.325 120.325 59.575 77.85 PNB 467.025 263.575 290.375 93.025 212.99 91.1 54.6 231.025 474.775 288.89 113.075 874 783.625 85.225 882.925 455.71 100 361.85 253.05 573.225 1095.96 124.875 236.725 534.2 772.52 137.825 958.5 123.425 113.96 106.325 114.4 99.725 109.775 529.8 269.25 354.21 101. 345.375 284.275 237.83 348.525 765.5 1067.4 279.025 242.075 133.75 IOB 102.59 441.075 251.6 218.425 824.6 522.525 271.75 230.525 170.7 BOB 246.95 UNION 123.125 57.925 107.65 767.25 1204.779 297.3 VIJAYA 61.425 787.175 93.4 80.525 516.7 114.76 105.975 44.4 198.65 40.95 297.25 100.7 55.1 452.65 456.65 211 235.6 406.525 421.90 90.7 360.55 320.99 349.23 451.15 49.40 109.925 320.7 127.05 86.725 821.2 96.475 98.775 216.075 118.925 99.7 252.8 42.26 301.325 883 232.

However during the period of June-06 to July–06 there is a drastic decrease in the index points they reached the lowest level of 90.Index Points of BANKING INDUSTRY Index points 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Months (JAN-06 to Dec-06) In the diagram shown above months are (Jan-06 to Dec-06) shown on the x-axis.22. During the initial period of the study that is Jan-06 to May-06 the index points moved from 100 to 109 points.37 points. In the month of December the index points reached to the level of 137. This time there is a standard increase in the index points in the next coming periods. Construction of Index for Automobile Industry: The Base period of Automobile Industry index Jan-2006 The Base points of Automobile Industry index are 100 The Companies involved in the Automobile industry index are six randomly selected companies from BSE200 index. Index points are shown on the y-axis. .536 soon there is an upturn in the index points by rising to the level of 100.

15 872.7 944 121.5 2709.6 2390.Automobile Index: TABLE NO.25 577.075 861 110.08 875.M .75 608.3 2849.L.33 751.78 770. .8 925 119.35 945 121.45 44.38 46.4 M&M Ltd.4 816.H.175 849 109.44 847.1 715 744. 679.25 734.43 45.7 2685.75 620.33 752.9 2645.48 39.025 666.625 949 122.3 34.1 2882.025 942 121.10 791.63 43.42 873.925 H.5 37.75 975 125.L 31.8 2577.38 44.625 635.9 2604.88 37.85 621. AVG.525 967 124.70 857.23 TVS 467 454 456 453 421 370 355 425 496 523 535 529 Index Points of Auto Industry Index POINTS 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 MONTHS (Jan-06 to Dec-06) In the diagram shown above months are (Jan-06 to Dec-06) shown on the x-axis.29 DATE Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 A.9 2892. Index points are shown on the y-axis.9 2898.575 609.94 856.73 767.25 42.525 865. 535. 858.45 898 115.9 785.63 874. Index Po.18 PUNJAB T.75 750.7 36.55 820.65 776 100 762.375 854 110.16 BAJA J 2084.275 621.88 887.22 943.275 805.83 794.5 2780.

775 794.97 80.3 759.675 Jul-06 546.3 1234.725 173.5 4594.1 167.85 748.6 1108.5 895.4 210.3 1092.825 799.74 105.975 1233. industry index are six randomly selected companies from BSE200 SENSEX TABLE NO.81 105.75 709.5 1157.29 1046.275 3320.95 2564.075 Mar-06 398.125 790.275 183.3 778.67 92.T. However during the period of May-06 to July–06 there is a down ward trend decrease in the index points they reached the lowest level of 110.9 Dec-06 708.475 WIPRO INFOSYS HCL 728.025 2889.T.325 Aug-06 522. Soon there is an upturn in the index points by rising to the level of 110.During the initial period of the study that is Jan-06 to Apr-06 the index points moved in upward trend at the level of 125.65 3926.96 107.7 1108.7 126.975 209. Industry index are 100 The Companies involved in the I. 100 99.55 839.95 201. Industry index Jan-2006 The Base points of I.03 1219. Industry: The Base period of I.875 937.6 1192.55 172.7 .95 235.775 946.6 1258.925 Sep-06 512.05 POLARIES SATYAM AVG 1114.3 1055.25 244.8 1132.425 267.17 99. Construction of Index for I.4 222.7 Apr-06 451.T.775 223.125 4304.425 904.375 1014.475 3199.275 171.9 1190.95 4439.T.1 154.85 396.75 97.15 Oct-06 498 Nov-06 561.98 96.3 331.725 1192.75 266.02 670.625 192.10.90 99.63 points.94 points and that has been followed by the next months.05 941.6 1193.55 100.26 DATE NIIT Jan-06 291.475 153.925 211.8 Jun-06 549.875 Feb-06 423.625 123.775 1193.025 191.675 4488.825 May-06 486. though there is a slight change.275 4315.02 701.025 241.1 769.925 4639.5 832.55 2730.17 Index Po.

Average points are shown on the y-axis. In the month of July the index points were decreased to 92. From the stating to June they were standard and there is not that much fluctuation in the index points they were moved in the range of 96 to 105.18 .17.97 and in the month of August they reached the lowest range 80. Construction of Index for Pharma Industry: The Base period of Pharma Industry index Jan-2006 The Base points of Pharma Industry index are 100 The Companies involved in the Pharma index are six randomly selected companies from BSE200 SENSEX Construction TABLE NO.74. Later there was a huge increase in the points and reached to 105.INDEX POINTS Index Points of IT Industry 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 M ONTHS (Jan-06 to Dec-06) In the diagram shown above months are (Jan-06 to Dec-06) shown on the x-axis.

625 464.49 112.7 431.575 510.24 89.975 256.45 606.9 783.15 739.5 617.05 120.25 363.15 496.61 104.3 478. 124.225 424.925 549.925 Ranbaxy 381.575 Aurobindo 1052.00 110.375 Glaxo smith 475.825 609. INDEX PO.675 587.45 366.28 Index Points of Pharma Industry 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Months (Jan-06 to Dec06) Index Points .DATE Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Cipla 443.39 100.725 547.925 417.4 626.7 224.28 100.375 703.975 258.8 381.725 382.275 365.00 122.45 437.98 112.96 99.625 261.3 665.1 419.575 403.83 123.975 462.96 98.1 Dr.725 501.23 91.875 428.07 179.2 657.075 548.825 625.85 396.26 128.525 729.775 727.6 609.48 92.4 422.225 621.7 619.REDDY’S Aventies AVG.75 414.425 1403.9 246.24 100.225 1047.25 457.625 461.25 385.7 1331.4 226.8 1213.275 490.3 454.95 372.925 1359.15 242.45 502.26 92.03 133.125 601.725 384.55 107.89 145.925 253.35 499.7 386.95 104.925 390.975 1335.925 1433.4 353.05 123.

more stable or more homogeneous coefficient of variation denoted by C. though there is a slight change.55. However there is a drastic decrease in the month of May-06. that is 89. Average points are shown on the y-axis. The corresponding relative measure is known as the coefficient of variation.V. Again decreased in the month of august and increased in the month of October. = (δ /Avg. It moved in the same range in the last three months i. Coefficient of variation: - The standard deviation discussed so far is an absolute measure of variation. C. less uniform. is obtained as follows.98.In the above diagram shown months are (Jan-06 to Dec-06) shown on the x-axis.V. November and December. the series for which coefficient of variation is less is said to be less variable or more consistent. And increase in June and July–06 reached to 99. more uniform. During the initial period of the study that is Jan-06 to Apr-06 the index points moved at the level around 100 points. October.e. That series or group for which the coefficient of variation is greater is said to be more variable or conversely less consistent. It is used in such problems where we want to compare the variability of two or more than two series. This measure developed by Karl Pearson is the most commonly used measure of relative variation.)*100 COMPARISON OF UNSYSTEMATIC RISK AND RETURN FOR THE BANKING INDUSTRY:- . less stable or less homogeneous. On the other hand.

84 9. On the basis of ranks HDFC Bank has got first rank for its best performance. On the basis of that this study gives ranks for the selected banking firms. Punjab National Bank has got least rank for its least performance.03 121.73 14.46 0.6 BOB -0.36 -26. In the above table ranking has given on the basis of coefficient of variance it gave the ranks for each bank. It helps to the investors to analyze the risks and returns involved in the banking industry.12 11.19 AB -0.78 VI -4.23 9.37 IV 2.7 50. COMPARISION OF UNSYSTEMATIC RISK AND RETURN FOR THE AUTOMOBILE INDUSTRY .38 88.75 10.74 9.66 7.87 V VII The above table shows the unsystematic risk and the return for each bank at the same times it also tells that what is the coefficient of variance for each bank.38 3.78 12.08 115.D Variance Coefficient of Variation -10.71 154.02 IOB 1.93 Average S.1 138.64 2.55 4.64 0.92 -2.61 Rank I 9.65 4.To compare the banking industry return and risk this study is used coefficient of variance. TABLE NO.12-21.98 214.30 III II 12.03 UB PNB -0.4 OBC HDFC SBI ICICI UTI CANARA VIJAYA -0.95 114.3 92. It helps us to know how much return we are getting for the baring of that much risk.45 3.87 97.08 10.01 120.81 -41.38 14.19 3.45 95.64 1.64 10.68 11.95 9.

62 II The above table shows the unsystematic risk and the return for each company. It helps to the investors to analyze the risks and returns involved in the Automobile industry. has got first rank for its best performance.08 5.46 6.59 3.87 IV I V TATA MOTORS 2.45 CV 4. TABLE NO. According to the basis of ranking Mahindra & Mahindra Ltd.13 -1.08 14. On the basis of that this study gives ranks for the selected Automobile firms. It helps us to know how much return we are getting for the baring of that much risk.72 12.15 1.81 10.58 Stdev 14.20 ASHO K Average 3.47 -4.55 37. In the above table ranks has given on the basis of coefficient of variance for each company.84 4.00 32.18 103. And it also tells that what is the coefficient of variance for each company. COMPARISION OF UNSYSTEMATIC RISK AND RETURN FOR THE IT INDUSTRY .40 0.84 9.72 154.14 Rank III BAJA HERO PANJA J M & M HONDA B 1.45 89.81 Variance 219. Punjab Tractors has got last rank in the selected companies for its least performance.To compare the Automobile industry return and risk this study is used coefficient of variance.93 5.

And it also tells that what is the coefficient of variance for each company. According to the basis of ranking NIIT has got first rank for its best performance. On the basis of that this study gives ranks for the selected Pharma firms.93 15.14 79.57 -2.90 8.77 -11.53 6. It helps to the investors to analyze the risks and returns involved in the Pharma industry. industry return and risk this study is used coefficient of variance. It helps us to know how much return we are getting for the baring of that given risk.49 CV 2.44 15. industry. companies.34 2.T. It helps us to know how much return we are getting for the baring of that much risk. On the basis of Co-efficient of variance.79 238. COMPARISION OF UNSYSTEMATIC RISK AND RETURN FOR THE PHARMA INDUSTRY To compare the Pharma industry return and risk this study is used coefficient of variance.To compare the I. this study gives ranks for the selected I. Polaris Software Ltd has got last rank in the selected companies for its least performance.73 -4.28 15.41 366. .28 -6.39 3.59 II III PARTI NIIT Average 5.94 Variance 167.51 SD 12.T.33 233. 21 WIPR INOFSY SATYA POLARI O S HCL M S 2.32 -3.31 19.35 Rank I The above table shows the unsystematic risk and the return for each company. It helps to the investors to analyze the risks and returns involved in the I.37 234. In the above table ranks has given on the basis of coefficient of variance for each company.37 -1.T. TABLE NO.

Average -1.02 2. According to the basis of ranking Aurobindo Pharma Ltd has got first rank for its best performance.54 9.99 -3. Reddy’s Lab has got last rank in the selected companies for its least performance.89 IV STERL BIOTEC 4.34 4.77 II WOCKHARDT LT -2. TABLE NO. On the basis of that this study gives ranks for the selected industries firms.92 94.06 CV -10. In the above table ranks has given on the basis of coefficient of variance for each company.23 .22 16.45 Variance 460. COMPARISION OF UNSYSTEMATIC RISK AND RETURN FOR THE SELECTED INDUSTRIES WISE To compare the selected industries return and risk this BSE200 the study is used coefficient of variance. And it also tells that what is the coefficient of variance for each company.76 248.82 166.83 Rank RANBAX Y AURO 0.96 The above table shows the unsystematic risk and the return for each company.98 SD 21.TABLE NO.31 9.REDD Y'S 0. It helps us to know how much return we are getting for the baring of that much risk.75 280.18 15. It helps to the investors to analyze the risks and returns involved in the selected industries.16 83.91 29.22 CIPLA LTD.84 III I DR.74 12.59 76. Dr.37 3.

fluctuations in the share prices and coefficient of variations for the selected companies from the selected industries.18 7.78 60. this study concludes returns.60 I Bank 3.29 IV Pharma 1. In the above table ranks has given on the basis of coefficient of variance for each index. In the area of Banking Industry. it can be concluded that Only Four Banks from selected twelve banks are noted High average return than the overall banking industry average return (Calculated on the basis of BANKEX) for the period of study.26 V The above table shows the unsystematic risk and the return for each company BSE200. the average return of the banking industry shows 3.45 29. According to the basis of ranking BSE200 has got first rank in selected indexes for its best performance and the lowest variability in the return it also tells that lowest fluctuations in the prices.16 51.68 1. And it also tells that what is the coefficient of variance for each company BSE200. Unsystematic Risk.52 III IT 2.89 1. CONCLUSTION After analyzing the selected companies from selected industries. The last rank has noted by Pharma industry.23 4. .28 3.92 II Auto 2.67 7.09 50. In case of Less average return noted by eight banks in that four banks are noted negative average returns for the period.89 57.09 % average return for twelve months of study.Average SD Variance CV Rank BSE-200 35.09 7.31 3284.55 2.84 5. For highest fluctuations in the prices. According to the BANKEX.

To construct index this take only selected companies.31%. only three companies was noted more average return than the industry return (Calculated on the basis of the auto index maintaining by BSE) from the selected six companies. Remaining three companies were noted less than average returns. And the BSE200 returns were moving with the high variability (S.22 were noted the month of December 2006.T. This is industry follows the trend. We can apply the trend analysis for this industry. Hero Honda motors confined a negative return.T.D.) as 57.31%than the other industries. as the average return for the period of previous twelve months of the automobile industry was 2.The average return of the I.T. The highest points 137. . The average return of the I. it can be concluded that four companies were registered positive average returns form the selected six companies.In the area of Automobile industry.22 and as such the fluctuations not that much high. To know the fluctuations in the prices of the shares of selected companies in the selected industries. Industry was 1. Industry. In the reaming ones HCL was expressed the negative return in the selected companies as –2.Industry was moving with the lowest risk as 5. In the case of unsystematic risk I. In the reaming ones HCL was expressed the high negative return in the selected companies as -3. In the area of I. Industry was 2. It means it has increased to one level and decreased. this study constructed index in the simple average method. In the area of Pharma Industry. But in the month of June there is a drastic change in index points reached the level of 91.54 to137.45% than the other industries. it can be concluded that only three companies were registered positive average returns form the selected six companies.84% for the twelve months period. The index points of BANKING INDUSTRY moved from around 90.57%.67%for the twelve months period.78.18%.T. can be expecting the downward trend in the next future. Again increased.

The index points of Automobiles industry moved from around 100 to 125. They are fluctuating with out any trend. This industry’s points were ended with104.98to112. NIIT . Aurobindo. Industry are moved around from 80.28 in last month.T.74.63. The investor needs to give the preference to the companies on the basis of coefficient of variation. These points are increasing and decreasing every month. ICICI. RECOMMENDATIONS:This study recommended some companies and industries on the basis of coefficient of variation. The Index points of I. . WIPRO.Index points were increased up to April and reached highest level of points as 125.63. SBI. In the last three months there were not that much change in the points. The points are not maintaining a trend. Investor cannot assume the trend of this industry. In this industry the index points are not following the trend.26. These points reached in the month of December 2006 at higher level of 107.The index points of this industry are fluctuating highly but not in the higher rate.05.26 and noted lower level in the month of August at 80. Then give the preference to UTI. TATA. There are not that much fluctuation in the index points. These industry index points are moving upward and downward. The index points of Pharmaceutical Industry moved around from 89.74 to 107. In the case of industries investor better to go for IT industry followed by Banking Industry and if he want to diversify the risk he can go for automobile industry then last preference shall given to Pharmaceutical Industry. Reached lowest level in the month of May and higher level in the month of February. First rank will be Mahindra and Mahindra from Auto industry and next HDFC from Banking Industry. In the case of companies investor wants to invest in more industries and don’t want to give preference for the specific industry. and so on. Then after the index points were decreased till July and then the index were moved in upward trend till September.

FULLER & L. • PREETI SINGH “INVESTMENT MANAGEMENT” Reprinted Edition in 1999. .K.FARELL. JR INVESTMENTS AND SECURITY ANALYSIS” -INTERNATIONAL EDITION 1987 “MODERN • V.BHALLA “INVESTMENT MANAGEMENT (SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT)” th 9 EDITION.BIBLIOGRAPHY • RUSSELL J.

KEVIN “PORTFOLIO MANAGEMENT” Second Print Feb 2001.bseindia.• S. • PUNITHAVATHY PANDIAN PORTFOLIO MANGEMENT” “SECUTITY ANALYSIS AND WEBSITE:- www.com .

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