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ABSTRACT

The security market is the placed where suppliers and users of capital, meet to share each other vision and aspiration. The issued shares are traded hence it is called as secondary market. The individuals in market transfer the funds from non profitable investment to profitable investment. This transfer of funds from low return share to high return shares forces the firms to improve their performance to increases the intrinsic value of shares.

The arbitrage is the deviation or difference between the market prices of a share. The arbitrage is gained when there is a difference in the price a share in two markets. The arbitrage provides some profits to the individuals in the market.

The arbitrage is the return for the invested amount and it is also for the skills used to get the deviation between the prices. The investors purchase the security from where the price is low and sell it in the market where the prices are high.

In these days, due to online trading the deviations in the market prices are occurring in rare. So it may be a difficult task to search for an opportunity of getting arbitrage.

INTRODUCTION
The securities market is a place where is a place suppliers and user of capital meet to share each others vision and aspirations and now here a balance is sought to be achieved between the diverse interest of market participations. Securities decouple individual acts of saving to occur without a concomitant investment .moreover, availability of yield bearing securities makes present consumption, including people to save more. The composition of saving changes, with less saving held in the form of idle money or unproductive assets simply because more divisible and liquid assets are available.

The securities market avoids allocation of savings to low yielding enterprises and hence forces them to improve performance. It continuo monitors their performance through movement of their share price in the market and the threat of takeover. the improves efficiency of resources use and thereby signficancetly increases the return on investment .as a result, savers and investors are constrained not by individual abilities but by the economys ability to invest and save, which in evitable enhances savings and investment in the economy. Thus the securities market converts a given stock of ingestible resources into a large flow of goods and services and promotes economic growth

OBJECTIVES

1. To Study about the difference of share price traded in NSE & BSE Sensex.

2. To study about the Return and risk of investment in select 3 scripts traded in NSE & BSE sensex.

3. To identify the chance of arbitrage, thus measuring the volatility in returns.

4. To identify the best script this gives maximum returns.

5. To measure the share prices performance for (December 2011 to February 2011)

NEED FOR THE STUDY


The present study to review Arbitrage trading is simply the trading of securities when the opportunity exists during the trading day to take advantage of differences in value between the markets the trades are made within. Arbitrage trading takes place all day long on most days that the markets are active. Arbitrage is legally allowed. In fact arbitrage is responsible for a large part of the daily volumes on the NSE & BSE exchanges.

RESARCH METHODOLOGY
Research design or research methodology is the procedure of collecting, Analyzing and interpreting the data to diagnose the problem and react to the Opportunity is such a way where the cost can be minimized and the desire Level of accuracy can be achieved to arrive at a particular conclusion.

The methodology used in the study for the completion of the project and the fulfillment of the project objectives, is follows

STATISATICAL TOOLS

Arithmetic average or mean:


The arithmetic average measures the central tendency. The purpose of computing an average value for set of observations is to obtain a single value, whish is representative of all items .The main in objective of averaging is to arrive at a single value which is a representative of the characteristics of the entire mass of data and arithmetic average or mean of a series (usually denoted by X) is the value obtained by dividing the sum of the values of various items in a series (sigma x) divided by number of items (N) constituting the series.

Thus, if X1,X2..Xn are the given N observations. Then X1+X2..Xn X= __________________ N

RETURN: Current price previous price *100 _____________________________ Previous price

VERIANCE:
The square of standard deviation is known as variance. Variance is the square root of the standard deviation: Variance =(S.D)2 Where, (S.D) is standard deviation

DATA COLLECTION METHODS

For the purpose of the study was collected through secondary Source of the data collection method .major source of the data are Published NSE & BSE sensex.

SOURCE OF THE DATA

PRIMARY DATA:
The primary data information is gathered in Alcom

SECONDARY DATA:

The secondary data is collected from various financial books, magazines and from stock lists of various newspapers and Alcom as part of the class undertaken for project.

TIME PERIOD

I collected daily stock price of 3 selected companies traded in BSE &NSE for the period December 2011 to February 2011

SCOPE OF THE STUDY


1. The scope of ltd to operation Alcom. Company.

2. The information obtained primary and secondary source were ltd to Alcom Company.

LIMITATIONS
1)The data collected was basically confined to secondary sources with very little amount of primary data associated with the project.

2)The detailed study of the topic way not possible due to the limited size of the project.

3)The availability of information in the form reports and price fluctuations of the company was a big constraint to the study.

4) The number of funds considered is 3 that is share prices traded in BSE and NSE sensex.

5) The time period taken for doing the data analysis has been taken DEC 2011 To FEB 2011.

COMPANY PROFILE
Origin:
India infoline Ltd., was founded in 1995 by a group of professional with impeccable educational qualifications and professional credentials. Its institutional investors include Intel Capital (world's) leading technology company, CDC (promoted by UK government), ICICI, TDA and Reeshanar. India Infoline group offers the entire gamut of investment products including stock broking, Commodities broking, Mutual Funds, Fixed Deposits, GOI Relief bonds, Post office savings and life Insurance. India Infoline is the leading corporate agent of ICICI Prudential Life Insurance Co. Ltd., which is India' No. 1 Private sector life insurance company. www.indiainfoline.com has been the only India Website to have been listed by none other than Forbes in it's 'Best of the Web' survey of global website, not just once but three times in a row and counting... A must read for investors in south Asia is how they choose to describe India Infoline. It has been rated as No.l the category of Business News in Asia by Alexia rating. Stock and Commodities broking is offered under the trade name 5paisa. India Infoline Commodities pvt Ltd., a wholly owned subsidiary of India Infoline Ltd., holds membership of MCX and NCDEX

Main Objects of the Company


Main objects as contained in its Memorandum or Association are: 1. To engage or undertake software and internet based services, data processing IT enabled services, software development services, selling advertisement space on the site, web consulting and related services including web designing and web maintenance, software product development and marketing, software supply services, computer consultancy services, E-Commerce of all types including electronic financial intermediation business and E-broking, market research, business and management consultancy.

2. To undertake, conduct, study, carry on, help, promote any kind of research, probe, investigation, survey, developmental work on economy, industries, corporate business houses, agricultural and mineral, financial institutions, foreign financial institutions, capital market on matters related to investment decisions primary equity market, secondary equity market, debentures, bond, ventures, capital funding proposals, competitive analysis, preparations of corporate / industry profile etc. and trade / invest in researched securities VISION STATEMENT OF THE COMPANY:
Our

vision is to be the most respected company in the financial services space In India .

Products: the India Infoline pvt ltd offers the following products
A. E-broking. B. Distribution C. Insurance D. PMS E. Mortgages

A. E-Broking:
It refers to Electronic Broking of Equities, Derivatives and Commodities under the brand name of 5paisa 1. Equities 2. Derivatives 3. Commodities

B.Distribution:
1. Mutual funds 2. Govt of India bonds. 3. Fixed deposits

C.Insurance:
1. Life insurance policies 2. General Insurance 3. Health Insurance Policies. 9

THE CORPORATE STRUCTURE


The India Infoline group comprises the holding company, India Infoline Ltd, which has 5 wholly-owned subsidiaries, engaged in distinct yet complementary businesses which together offer a whole bouquet of products and services to make your money grow. The corporate structure has evolved to comply with oddities of the regulatory framework but still beautifully help attain synergy and allow flexibility to adapt to dynamics of different businesses. The parent company, India Infoline Ltd owns and managers the web properties www.Indiainfoline.com and www.5paisa.com. It also undertakes research Customized and off-the-shelf.

Indian Infoline Securities Pvt. Ltd. is a member of BSE, NSE and DP with NSDL. Its business encompasses securities broking Portfolio Management services.

India Infoline.com Distribution Co. Ltd., Mobilizes Mutual Funds and other personal investment products such as bonds, fixed deposits, etc.

India Infoline Insurance Services Ltd. Is the corporate agent of ICICI Prudential Life Insurance, engaged in selling Life Insurance, General Insurance and Health Insurance products.
India Infoline Commodities Pvt. Ltd. is a registered commodities broker MCX and offers futures trading in commodities.

India Infoline Investment Services Pvt Ltd., is proving margin funding and NBFC services to the customers of India Infoline Ltd.,

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Pictorial Representation of India Infoline Ltd

Management of India Infoline Ltd.,


India Infoline is a professionally managed Company. The promoters who run the company/s day-to-day affairs as executive directors have impeccable academic professional track records. Nirmal Jain, chairman and Managing Director, is a Chartered Accountant, (All India Rank 2); Cost Account, (All India Rank l) and has a post-graduate management degree from IIM Ahmedabad. He had a successful career with Hindustan Lever, where he inter alia handled Commodities trading and export business. Later he was CEO of an equity research organization. R. Venkataraman, Director, is armed with a post- graduate management degree from IIM Bangalore, and an Electronics Engineering degree from IIT, Kharagpur. He

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spent eight fruitful years in equity research sales and private equity with the cream of financial houses such as ICICI group, Barclays de Zoette and G.E. Capital The non-executive directors on the board bring a wealth of experience and expertise. Satpal khattar -Reeshanar investments, SingaporeThe key management team comprises seasoned and qualified professionals.

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