Introduction and Design of The Study

CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY
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1.1 INTRODUCTION
Investment is the process of exchanging income during one period of time for an asset
that is expected to produce incomes in future periods. Therefore, consumption in the
current period is foregone to obtain a greater yield in the future. For an economy as a
whole to invest, total production must exceed total consumption. Throughout the history
of capitalism, investment has been primarily the function of private business; during the
20th century, however, Governments in planned economies and developing countries have
become important investors (www.britannica.com). The economic growth of a county can
be fortified through the use of proper investment. In the modern world, different range of
investment opportunities exists namely postal savings, bank deposits, gold, real estate,
mutual funds, equity shares, preference shares, bonds and so on. However, investment in
the share market i.e., equity share and preference share play a vital role in the mindset of
aggressive investors. The primary objective of the investment is to get maximum returns
from investment in the future period. Hence, investors are willing to take high-risk
security to get maximum return from the investment. The selection of suitable security in
share market with the right combination of risk and return is very difficult for the
investor. To select the optimum portfolio for the investor Sharpe Single Index model
exist. Henceforth, the researcher has taken an attempt to study the construction of an
optimal portfolio using Sharpe’s single index model in BSE SENSEX index stocks.
1.2 STATEMENT OF THE PROBLEM

1.3 SCOPE OF THE STUDY
1.4 OBJECTIVES OF THE STUDY
The overall objective of the study is to construct an optimal portfolio using Sharpe’s
Single index model by using the BSE SENSEX stocks. The following are the more specific
objective they are;
1. to calculate the risk and return of the constructed optimal portfolio by using
Sharpe’s Single Index Model.
2. to compute the proportion of investment to be made into each of the stock of the
optimal portfolio stock.
1.5 HYPOTHESES OF THE STUDY
1.6 METHODOLOGY
A. SAMPLING
To analyse the optimum portfolio construction in equity stocks, the researcher has
chosen the BSE SENSEX Index. It represents the 30 most liquid and financially sound
companies which trade on the Bombay Stock Exchange (BSE). It is the benchmark index of
BSE and key sectors of the Indian economy constitute the SENSEX. The researcher has
selected all the stocks in BSE SENSEX index.
B. DATA COLLECTION
The data collected for this study are daily open, high, low and closing prices of selected
stocks and SENSEX index. Instead of using the closing price itself, the researcher used the
average of these four prices. According to Shilpa Lodha et al., majority of prior researchers
have used only closing prices as if trading is done only at the closing price, rather the average
of these four prices can yield better results as it can control volatility up to some extent. All
the data have been collected from the official website of Bombay Stock Exchange i.e.,
www.bseindia.com. The sample included for the study from 1st April 2014 to 31st March
2019.
1.7 TOOLS USED FOR THE STUDY
RETURN
The daily returns are calculated as follow;
Rt = LN (Pt/ Pt - 1)*100
Where: Rt = Return of the day‘t’; LN = Natural Logarithm; Pt = closing price of the
day and
Pt – 1 = closing price of the day (t – 1)
RISK-FREE RATE OF RETURN (RF)

The Risk-free rate of return is the required return on a risk-free asset. This study used
91 days Treasury bills for risk-free rate of return.
BETA
A beta coefficient is a measure of the volatility or systematic risk of an individual stock in
comparison to the unsystematic risk of the entire market. If the beta value shows 1, the
security's price moves with the market. If the beta value is less than 1, means that the security
is theoretically less volatile than the market. If the beta value more than 1 means that the
security's price is theoretically more volatile than the market.
Covariance( R e , Rm )
β=
Variance(R m)
Here: Covariance = measure of a stock's return relative to that of the market
Variance = Measure of how the market moves relative to its mean
Re = Stock return and Rm = market return
EXCESS RETURN TO BETA RATIO

The excess return to beta ratio is calculated as follow;
= (Rn-Rf)/β
Where, Ri= the expected return on the stock,
Rf = the return on a riskless asset,
βi= systematic risk of an individual stock in comparison to the unsystematic risk of the
entire market.
CUT-OFF POINT
The Cut-off Point is calculated as follow;
Ci = (σ2m*∑((Rn-Rf) β/)/σ2ei) / 1+ σ2m*∑β^2/σ2ei

Where e = security variance
m = market variance
THE PROPORTION OF INVESTMENT OF EACH STOCK
Wi = Zi/ΣZi
Where Zi= βi^2/σ^2ei (Rn-Rf/β-C)
1.8 LIMITATION OF THE STUDY

CHAPTER II
THEORETICAL CONCEPTS AND REVIEW OF LITERATURE
2.1 THEORETICAL CONCEPTS
2.2 REVIEW OF LITERATURE
S Poornima and Aruna P Remesh (2015) using all the collected data a “cut-off “rate had
been calculated and that rate had been considered for the construction of optimal portfolio.
The finding of the study is very useful for investors, policy makers, corporations and their
financial market participants.
Saurabh Singh and M.M. Anjum Parwej (2017) the proportion of investment in each of
the selected securities is computed on the basis of beta value, unsystematic risk, and excess
return to beta ratio and cut-off rate of each of the securities concerned. The study finds that
four company stocks constitute the optimum portfolio and these are TCS, HUL, ITC, and
HDFC bank with ideal proportion of investment of 31%, 30%, 27% and 12% respectively.
Raghavendra And S Bendigeri (2018) this research aims to create an optimal portfolio
comprising of four ETFs (Exchange Traded Funds) listed on BSE. The data collected for the
research is secondary data of monthly prices of ETFs listed on BSE and is for the period Jan
2012 to June 2017. N –Asset Mean Variance Portfolio model has been employed to compute
Variance – Co – Variance Matrices and Co – relation Matrices. The quantum of allocation in
each asset depends on the risk and return characteristics of the asset. GRG – Non Linear
Optimization Method has been employed to arrive at the quantum of allocation in each of the
ETFs to create an optimal portfolio.
Poornima S And Aruna P Remesh (2016) calculating the cut-off values using all the
collected data. On the basis of the cut-off values to know which securities are performing
highly well and which are performing low in the market. The study findings are useful to
policy makers, investors and participants of financial markets.
Yash Pal Taneja And Shipra Bansal (2011) the study reveals that there does exist
consistency pattern Sharpe and Treynor model for efficient securities identification. It is
found that Single Index model has been successful to reach at the optimum portfolio by
diversifying almost all the unsystematic risk.
Kavitha Lal And S.R. Subba Rao (2018) this is followed by a coverage of the concepts
and definitions which are relevant for this study. A comparison of the different approaches to
select an optimum portfolio has been made to get an overview of the relative measures.
Vijay Bhatu And Hetal Mehta (2018) the data collection we find the return in percentage,
the time duration of data analysis is past 10 years. After the find the mean return and risk of
securities. Also find the covariance and beta of the securities in relation to BSE market. Then
after we have applied the Sharpe’s ratio that gives the base of portfolio selection. The sharps
ratio gives the idea about incremental return for incremental risk and reward to volatility of
the securities.
Navya V And Sibin Mohamed Sadique (2019) the stocks are ranked according to their
excess return to beta ratio. A cut-off point is determined and all the stocks above the cut off
point has been used to construct an optimal portfolio based on a calculated proportion of
investments in the selected securities.
James Williams (2010) goal is to determine whether estimation error adjustments would
have led to better investment performance of optimized portfolios over the period, and
whether any of the approaches significantly outperforms the others
Tanuj Nandan And Nivedita Srivastava (2017) the reason for choosing SIM over the
Markowitz Model is that it requires fewer inputs and is easier to calculate. It is named as
Single Index Model as it uses only a single index for portfolio construction. Further, the
proportion of investment of each stock included in the optimal portfolio was also computed.
Syed Mohammad Faisal And Omar Abdullah Al Aboud (2017) in this paper we have also
shown the characteristics of BETA that measures systematic risk and expected return,
variances and many other mathematical models have been shown to explore various risk and
return of share market indexes and individual securities and interrelated equations.
Joiceswarnalatha and Chethan Raju (2017) the companies from telecommunications

sector are Bharti Airtel, Vodafone, Idea, Reliance and Tata Docomo. The study reveals that
the telecommunication industry has high returns at a given risk. Cement industry stocks are
advisable for the conservative investors who are not in position to take high risk.
J. Francis Mary And G. Rathika (2015) sharpe's single-index model was applied by using
the monthly closing prices of 10 companies listed in NSE and CNX PHARMA price index
for the period from September 2010 to September 2014. From the empirical analysis it can be
concluded that out of 10 companies only one company is selected for investment purpose on
the basis of Cut-off point which is -0.11182.
SeDrema Shokeen (2017) the construction of an optimal portfolio by applying Sharpe‘s

single index model is an important process because it is a process of choosing securities in
that way for earning maximum return at a minimum level of risk. Thus, the main purpose of
this paper is to construct an optimal portfolio by applying Sharpe‘s single index model.
OS Oladele And D Bradfield (2016) the low volatility portfolios are blended with typical
general equity portfolios (using the Shareholder-Weighted Index (SWIX) as a proxy). It was
found that theseblended portfolios have useful features which lead to enhanced performance
and therefore canserve as effective portfolio strategies.
Sarayut Nathaphan and Pornchai Chunhachinda (2010) among the six alternative
strategies, shrinkage estimators incorporating the single index model outperform other
traditional portfolio selection strategies. Allowing for asset mispricing and applying Bayesian
shrinkage adjusted factor to each asset’s alpha, a single factor namely, excess market return is
adequate in alleviating estimation uncertainty.
Saroj Kanta Biswal (2015) 40 S&P 100 BSE Sensex index listed companies having large
market capitalization were selected for the study. Among the 40 sample companies, 23 were
selected for optimal portfolio using SIM. The results of the present study and such micro
level studies have more utility value to the fund managers.
S.Vinoth And T.Jayashree (2017) the study finds that only three company stocks
constitute theoptimum portfolio and these are Gujarat Sidhee Cement Ltd, Rain Industries
Ltd and, Barak Valley Cements Ltd. with idealproportion of investment of 33.32%, 33.33%
and 33.35% respectively. This research findings and suggestions would behelpful to
investors.
Guntur Anjana Raju and Mrunali Jambotkar (2018) the analyses concluded that the first
ranked nine blue chip Stocks are preferable in the construction of an optimal portfolio and
thereby to spread the availability of funds. The analytical findings will be the significant
outcome to all the participants of financial markets.
Madan K. M. And Manoj Kumara N.V (2018) this research papers consist of the
calculation process based on variable in connection to risk, return, beta and cut off rate. This
paper also helps to identifies positive significant relationship between share prices and
expected returns through empirical testing.
Rama Krishna Mishra (2015) the study finds that five company stocks i.e three
frompharma (Glaxo, Sunpharma, Dr.Reddy) and two from banking sectors(Axis Bank and
Bank of Baroda) constitute theoptimum portfolio with ideal proportion of investment of
0.60% ,50.14%,22.31%,11.28% and 15.67% respectively. This research findings and
suggestions would be helpful to investors.
S.Subashree and M.Bhoopal (2017) using all the collected data a “cut-off” rate had been
calculated and that rate had been considered for the construction of optimal portfolio. The
finding of the study will be very useful for investors, policy makers, corporations and their
financial market participants.
Djamaluddin and Djumarno (2017) hypothesis test results showed there is no significant
difference between the returns of stocks which is a portfolios candidate and the stocks that is
not a candidate's portfolio but the existence of significant difference between the stock's risk
portfolio with stock candidates instead of a candidate portfolio.
J. Murthy (2018) the study reveals that only tow company stock constitute the optimum
portfolioand these are Vedanta and Tata steel with a ideal proportion of investment of
86.37% and 13.62% respectively.
Mokta Rani Sarke (2015) the findings of this paper will be useful for policy makers, all
kinds of investors, corporations, and other financial market- participants
Astuty Pudji and Yolanda (2018) the proportion of the optimal portfolio with the highest
return generated in Kompas 100 stocks using the Single Index Model method. (2) The
Kompas 100 portfolio has the highest Sharp, Treynor, and Jensen Index values compared to
the LQ 45 portfolio with the Single Index Model, Constant Correlation Model, and
Markowitz Model. (3) Calculation of optimal portfolio with Single Index Model shows better
performance than Constant Correlation Model and Markowitz Model for both Kompas 100
and LQ 45.
Suresh A.S And Harshitha N (2016) this study is conducted on the stocks which are
listed is S&P BSE SENSEX (Automobile, banking and pharmaceuticals sectors) are taken.
The study is undertaken for a period of 6 years starting from 1st January 2011 till 31st
December 2016 where yearly closing balance are taken for the purpose of computation of risk
and return.
S. I. U. Chasanah and I. G. P. Purnaba (2017) based on the M-V Criterion, it can be

concluded that the optimal portfolio formation with Markowitz Model is more dominant than
the Single Index Model on Jakarta Islamic Index (JII) stocks in the period of December1st,
2015-November 30th, 2016
Raghavendra and S Bendigeri (2018) in present study, portfolio is constructed from IT

stocks of NSE IT Index. Montly data is collected from Ten IT companies of NSE IT for the
time period of One Year from December 2016 to November 2017. Out of 10 stocks, 5 stocks
are selected for investing namely MindTree (32.127%), Infibeam (4.30%), KPIT (17.761%),
OFSS (26.117%) and Wipro (19.691%)
Laxmi Kanta Giri and Gayadhar Pathi (2017) in this paper the author attempts to
construct an optimum portfolio with the help of Sharpe’s single index model. The daily
closing prices of all 50 stocks along with the Nifty Index were considered for the period of
one year. i.e. from 1 st January 2015 to 31st December 2015. Results from the analysis shows
that out of 50 stocks, only 5 stocks were included in the optimum portfolio.
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CHAPTER III
PROFILE OF THE STUDY AREA
3.1 PROFILE OF THE STUDY AREA
1.Hindustan Unilever
HUL was established in 1933 as Lever Brothers and following merger of constituent

groups in 1956 was renamed as Hindustan Lever Limited. The company was renamed in June
2007 as "Hindustan Unilever Limited".
As of 2019 Hindustan Unilever portfolio had 35 product brands in 20 categories and
employs 18,000 employees with sales of Rs. 34,619 crores in 2017-18.
In December 2018, HUL announced its acquisition of Glaxo Smithkline's India business for
$3.8 billion in an all equity merger deal with 1:4.39 ratio. However the integration of 3800
employees of GSK remained uncertain as HUL stated there was no clause for retention of
employees in the deal. In January 2019, HUL said that it expects to complete the merger with
Glaxo Smith Kline Consumer Healthcare (GSKCH India) this year.
https://en.wikipedia.org/wiki/Hindustan_Unilever
2.Titan
It commenced operations in 1984 under the name Titan Watches Limited. In 1994,
Titan diversified into jewellery with Tanishq and subsequently into eyewear with Titan
Eyeplus. In 2013, Titan entered the fragrances segment with the brand Skinn and later that
year, it ventured into the helmets category under its brand Fastrack. Also, Titan announced
recently (during the last quarter of 2016) about launching a series of affordable smartwatches
under its brands like Sonata and Fastrack soon.
Today, Titan Company is Tata Group's largest consumer company. Manushi Chhillar
is the era’s brand ambassador of Titan.
https://en.wikipedia.org/wiki/Titan
3.HDFC Bank
HDFC Bank was incorporated in 1994, with its registered office

in Mumbai, Maharashtra, India. Its first corporate office and a full service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister, Manmohan Singh. As of
June 30, 2019, the Bank's distribution network was at 5500 branches across 2,764 cities. The
bank also installed 4.30 Lakhs POSterminals and issued 235.7 Lakhs debit cards and
1.2 crores credit cards in FY 2017.
https://en.wikipedia.org/wiki/HDFC_Bank
4.Asian Paints
The company was started in a garage in Gaiwadi, Girgaum - Mumbai by four friends

Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil all four belongs
to Jain Bania Family, founded the company in February 1945. During World War II and
the Quit India Movement of 1942, a temporary ban on paint imports left only foreign
companies and Shalimar Paints in the market. Asian Paints took up the market and reported
annual turn over of ₹23 crore in 1952 but with only 2% PBT margin. By 1967, it became the
leading paints manufacturer in the country.
The four families together held the majority shares of the company. But disputes
started over the global rights in 1990s when the company expanded beyond India. The
disputes resulted in Choksey selling their 13.7% shares and exiting in 1997. Champaklal died
in July 1997 and his son Atul took over. After failed collaboration talks with the British
company Imperial Chemical Industries, Choksey's shares were mutually bought by the
remainder three family and Unit Trust of India. As of 2008, the Choksi, Dani and Vakil
families hold a share of 47.81%.
https://en.wikipedia.org/wiki/Asian_Paints
5.Nestle India
Nestlé S.A. is a Swiss multinational food and drink processing conglomerate

corporation headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the
world, measured by revenues and other metrics, since 2014. It ranked No. 64 on the Fortune
Global 500 in 2017 and No. 33 on the 2016 edition of the Forbes Global 2000 list of largest
public companies.
Nestlé's products include baby food, medical food, bottled water, breakfast cereals,

coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
Twenty-nine of Nestlé's brands have annual sales of over CHF1 billion
(about US$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447 factories, operates in
189 countries, and employs around 339,000 people. It is one of the main shareholders
of L'Oreal, the world's largest cosmetics company.
Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George and Charles Page, and Farine Lactée Henri Nestlé,
founded in 1866 by Henri Nestlé. The company grew significantly during the First World
War and again following the Second World War, expanding its offerings beyond its
early condensed milk and infant formula products. The company has made a number of
corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in
1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007.
The company has seen various controversies, facing criticism and boycotts over its
marketing of baby formula as an alternative to breastfeeding in developing countries, its
reliance on child labour in cocoa production, and its production and promotion of bottled
water.
https://en.wikipedia.org/wiki/Nestl%C3%A9
6.IndusInd Bank Limited
IndusInd Bank Limited is an Indian new generation bank in Pune, established in

1994. The bank offers commercial, transactional and electronic banking products and
services. IndusInd Bank was inaugurated in April 1994 by then Union Finance
Minister Manmohan Singh. Indusind Bank is the first among the new-generation private
banks in India.
The bank started its operations with a capital amount of Rs. 1 billion among which
Rs. 600 million was raised by the Indian Residents and Rs. 400 million was raised by the
Non-Resident Indians. The bank has specialized in retail banking services and continuously
upgrades its support systems by introducing newer technologies. It is also working on
expanding its network of branches all across the country along with meeting the global
benchmark. According to the bank, its name is derived from the Indus Valley Civilisation.
As on 31 December 2018, IndusInd Bank has 1,558 branches, and 2453 ATMs spread
across in different geographical locations of the country. It also has representative offices in
London, Dubai and Abu Dhabi. Mumbai has the maximum number of bank branches
followed by New Delhi and Chennai. The bank has also proposed to double the branches
count to 1200 by March 2019.
https://en.wikipedia.org/wiki/IndusInd_Bank
7.Maruti Limited
Maruti Limited, formerly known as Maruti Udyog Limited, is an automobile

manufacturer in India. It is a 56.21% owned subsidiary of the Japanese car and motorcycle
manufacturer Suzuki Motor Corporation. As of July 2018, it had a market share of 53% of the
Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as
the Ciaz, Ertiga, Wagon R, Alto K10 and Alto 800, Swift, Celerio, Swift Dzire, Baleno and
Baleno RS, Omni, baleno, Eeco, Ignis, S-Cross, Vitara Brezza and newly launched S-Presso
small SUV. The company is headquartered at New Delhi. In May 2015, the company
produced its fifteen millionth vehicle in India, a Swift Dzire.
https://en.wikipedia.org/wiki/Maruti_Suzuki
8.Power Grid Corporation of India Limited
The Power Grid Corporation of India Limited (POWERGRID) is an Indian state-

owned Maharatna company headquartered in Gurugram, India and engaged mainly in
Transmission of Power. Powergrid transmits about 50% of the total power generated in India
on its transmission network. Its former subsidiary company, Power System Operation
Corporation Limited (POSOCO) handles power management for National Grid and all state
transmission utilities. Powergrid also operates a telecom business under the name powertel.
Shri Kandikuppa Sreekant serves as the Chairman and Managing Director of the company
https://en.wikipedia.org/wiki/Power_Grid_Corporation_of_India
9.HDFC
Housing Development Finance Corporation Limited (HDFC) is an Indian financial
services company based in Mumbai, India. It is a major provider of finance for housing in
India. It also has a presence in banking, life and general insurance, asset management,
venture capital, realty, education, deposits and education loans. It was founded in 1977 as the
first specialised mortgage company in India. HDFC was promoted by the Industrial Credit
and Investment Corporation of India. Hasmukhbhai Parekh played a key role in the
foundation of this company.
In 2000, HDFC Asset Management company launched its mutual fund schemes. [6] In
the same year, IRDA granted registration to HDFC Standard Life Insurance, as the first
private sector life insurance company in India.
https://en.wikipedia.org/wiki/Housing_Development_Finance_Corporation
10.UltraTech Cement Limited
Ultratech cement limitedis an Indian cement company based in Mumbai. In February

2016, Bombay High Court rejected UltraTech's plan to acquire two cement plants from JP
Associates. The court in 2015 passed Mines and Mineral Development and Regulation Act.
The company instead began to make plan to acquire several cement plants as a whole by
acquiring Jaiprakash Associates instead.
https://en.wikipedia.org/wiki/UltraTech_Cement
11.Kotak Mahindra Bank
Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai,
Maharashtra, India. In February 2003, the Reserve Bank of India (RBI) issued a licence to
Kotak Mahindra Finance Ltd., the group's flagship company.
It offers banking products and financial services for corporate and retail customers
through a variety of delivery channels and specialized subsidiaries in the areas of personal
finance, investment banking, general insurance, life insurance, and wealth management. As
of April 2019, it is second largest Indian private sector bank by market capitalization. In
1985 Uday Kotak established what became an Indian financial services conglomerate. In
February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company,
received a banking licence from the Reserve Bank of India (RBI). With this, KMFL became
the first non-banking finance company in India to be converted into a bank—Kotak Mahindra
Bank Limited.
In a study by Brand Finance Banking 500 published in February 2014 by Banker
magazine , KMBL was ranked 245th among the world's top 500 banks with brand valuation
of around half a billion dollars ($481 million) and brand rating of AA+.
In 1985 Uday Kotak established what became an Indian financial services

conglomerate. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's flagship
company, received a banking licence from the Reserve Bank of India (RBI). With this,
KMFL became the first non-banking finance company in India to be converted into a bank—
Kotak Mahindra Bank Limited.
In a study by Brand Finance Banking 500 published in February 2014 by Banker

magazine (from The Financial Times stable), KMBL was ranked 245th among the world's
top 500 banks with brand valuation of around half a billion dollars ($481 million) and brand
rating of AA+.
https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank
12.Bajaj Finance Limited
Bajaj Finance Limited, a subsidiary of Bajaj Finserv, is an Indian Non-Banking

Financial Company (NBFC). The company deals in Consumer Finance, SME (Small and
Medium-sized Enterprises) and Commercial Lending, and Wealth Management.
Headquartered in Pune, Maharashtra, the company has 294 consumer branches and

497 rural locations with over 33,000+ distribution points. The company reported a pre-tax
profit of Rs.626 crores and a post-tax profit of Rs.408 crores at a ROA of 0.8% and ROE of
5.1% in Q2 FY17.
Originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, the non-
bank singularly focused on providing two and three wheeler finance. After 11 years in the
auto finance market, Bajaj Auto Finance Ltd launched its initial public issue of equity share
and was listed on the BSE and NSE.
At the turn of the 20th century, the company ventured into the durables finance sector.
In the subsequent years, Bajaj Auto Finance diversified into business and property loans as
well.
In the year 2006, the company’s assets under management hit the Rs.1,000 crore mark
and is currently at Rs.52,332 crore. 2010 saw the company’s registered name change from
Bajaj Auto Finance Limited to Bajaj Finance Limited
https://en.wikipedia.org/wiki/Bajaj_Finance
13.Bajaj Auto Limited

Bajaj Auto Limited is an Indian global two-wheeler company and three-wheeler
manufacturing company based in Pune, Maharashtra. It manufactures motorcycles, scooters
and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj
in Rajasthan in the 1940s. It is based in Pune, Maharashtra, with plants in Chakan (Pune),
Waluj (near Aurangabad) and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune)
now houses the R&D centre 'Ahead'.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-
largest in India. It is the world's largest three-wheeler manufacturer.
On May 2015, its market capitalisation was ₹64,000 crore (US$9.0 billion),making it

India's 23rd largest publicly traded company by market value. The Forbes Global 2000 list
for the year 2012 ranked Bajaj Auto at 1,416.
https://en.wikipedia.org/wiki/Bajaj_Auto
14.Reliance Industries Limited
Reliance Industries Limited (RIL) is an Indian multinational conglomerate company

headquartered in Mumbai, Maharashtra. Reliance owns businesses across India engaged in
energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance
is one of the most profitable companies in India, the largest publicly traded company in India
by market capitalization, and the largest company in India as measured by revenue after
recently surpassing the government-controlled Indian Oil Corporation. On 18 October 2007,
Reliance Industries became the first Indian company to exceed $100 billion market
capitalization.
The company is ranked 106th on the Fortune Global 500 list of the world's biggest
corporations as of 2019. It is ranked 8th among the Top 250 Global Energy Companies
by Platts as of 2016. Reliance continues to be India's largest exporter, accounting for 8% of
India's total merchandise exports with a value of Rs 147,755 crore and access to markets in
108 countries. Reliance is responsible for almost 5% of the government of India's total
revenues from customs and excise duty. It is also the highest income tax payer in the private
sector in India. In 2019, Reliance Industries become the first Indian firm to cross Rs 9 lakh
crore market valuation mark. It has become the first ever Indian company to cross Rs 10 lakh
crore market capitalization.
https://en.wikipedia.org/wiki/Reliance_Industries_Limited
15.Tata Steel Limited

Tata Steel Limited, formerly Tata Iron and Steel Company Limited (TISCO), is an
Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India,
marketing headquarters in Kolkata, West Bengal, India, and a subsidiary of the Tata Group.
It is one of the top steel producing companies globally with annual crude steel

deliveries of 27.5 million tonnes (in FY17), and the second largest steel company in India
(measured by domestic production) with an annual capacity of 13 million tonnes after SAIL.
Tata Steel operates in 26 countries with key operations in India,

Netherlands and United Kingdom, and employs around 80,500 people. Its largest plant (10
MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-
based steel maker Corus. It was ranked 486th in the 2014 Fortune Global 500 ranking of the
world's biggest corporations. It was the seventh most valuable Indian brand of 2013 as
per Brand Finance.
https://en.wikipedia.org/wiki/Tata_Steel
16.NTPC Limited
NTPC Limited, formerly known as National Thermal Power Corporation Limited, is
an Indian Public Sector Undertaking, engaged in the business of generation of electricity and
allied activities. It is a company incorporated under the Companies Act 1956 and is promoted
by the Government of India. The headquarters of the company is situated at New Delhi.
NTPC's core business is generation and sale of electricity to state-owned power distribution
companies and State Electricity Boards in India. The company also undertake consultancy
and turnkey project contracts that involve engineering, project management, construction
management and operation and management of power plants.
The company has also ventured into oil and gas exploration and coal

mining activities. It is the largest power company in India with an electric power generating
capacity of 58,156 MW . Although the company has approx. 16% of the total national
capacity it contributes to over 25% of total power generation due to its focus on operating its
power plants at higher efficiency levels (approx. 80.2% against the national PLF rate of
64.5%).NTPC currently produces 25 billion units of electricity per month.
NTPC currently operates 53 power stations (22 Coal, 7 combined cycle gas/liquid
fuel, 2 Hydro, 1 Wind and 11 solar projects). Further, it has 9 coal and 1 gas station, owned
by joint ventures or subsidiaries.
It was founded by Government of India in 1975, which now holds 54.74% of its
equity shares on 30.06.2016 (after divestment of its stake in 2004, 2010, 2013, 2014, 2016,
& 2017)
In May 2010, NTPC was conferred Maharatna status by the Union Government of India,one
of the only four companies to be awarded this status. It is ranked 400th in the Forbes Global
2000 for 2016.
https://en.wikipedia.org/wiki/NTPC_Limited
17.Hero Motocorp Ltd
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. The company is the largest two-wheeler
manufacturer in the world, and also in India, where it has a market share of about 46% in the
two-wheeler category. The 2006 Forbes list of the 200 World's Most Respected Companies
has Hero Honda Motors ranked at #108. On 31 March 2013, the market capitalisation of the
company was ₹308 billion (US$4.3 billion).
Hero Honda started its operations in 1984 as a joint venture between Hero Cycles
(sometimes called Hero Group, not to be confused with the Hero Group food company of
Switzerland) of India and Honda of Japan. In 2010, when Honda decided to move out of the
joint venture, Hero Group bought the shares held by Honda, and focused on its entirely
owned subsidiary, Honda Motorcycle and Scooter India (HMSI).
In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its
parent Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its
split from Hero Honda.
"Hero" is the brand name used by the Munjal brothers for their flagship company,
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family
and Honda group both owned 26% stake in the Company.
During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it
– Shut it – Forget it' that emphasised the motorcycle's fuel efficiency helped the company
grow at a double-digit pace since inception. In 2001, the company became the second largest
two-wheeler manufacturing company in India and globally. It maintains global industry
leadership to date. The technology in the bikes of Hero Motocorp (earlier Hero Honda) for
almost 26 years (1984–2010) has come from the Japanese counterpart Honda.
https://en.wikipedia.org/wiki/Hero_MotoCorp
17.Larsen & Toubro Limited
Larsen & Toubro Limited, commonly known as L&T is an Indian multinational

conglomerate company headquartered in Mumbai, Maharashtra, India. It was founded by two
Danish engineers taking refuge in India. The company has business interests in basic and
heavy engineering, construction, realty, manufacturing of capital goods, information
technology, and financial services. As at March 31, 2018, L&T Group comprises 93
subsidiaries, 8 associates, 34 joint-venture and 33 joint operations companies.
https://en.wikipedia.org/wiki/Larsen_%26_Toubro
18.Bharti Airtel Limited
Bharti Airtel Limited, also known as Airtel, is an Indian global telecommunications

services company based in Delhi, India. It operates in 18 countries across South Asia and
Africa, and also in the Channel Islands. Airtel provides GSM, 3G, 4G LTE, 4G+ mobile
services, fixed line broadband and voice services depending upon the country of operation.
Airtel had also rolled out its VoLTE technology across all Indian telecom circles. It is
the third largest mobile network operator in India and the second largest mobile network
operator in the world with over 411.42 million subscribers. Airtel was named India's 2nd
most valuable brand in the first ever Brandz ranking by Millward Brown and WPP plc.
Airtel is credited with pioneering the business strategy of outsourcing all of its

business operations except marketing, sales and finance and building the 'minutes factory'
model of low cost and high volumes. The strategy has since been adopted by several
operators. Airtel's equipment is provided and maintained by Ericsson, Huawei, and Nokia
Networks whereas IT support is provided by Amdocs. The transmission towers are
maintained by subsidiaries and joint venture companies of Bharti including Bharti
Infratel and Indus Towers in India. Ericsson agreed for the first time to be paid by the minute
for installation and maintenance of their equipment rather than being paid up front, which
allowed Airtel to provide low call rates of ₹1 (1.4¢ US)/minute.
https://en.wikipedia.org/wiki/Bharti_Airtel
19.TCS
TATA Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) service and consulting company headquartered in Mumbai, Maharashtra,
India. It is a subsidiary of Tata Group and operates in 149 locations across 46 countries.
TCS is the largest Indian company by market capitalisation. Tata consultancy services

is now placed among the most valuable IT services brands worldwide. In 2015, TCS was
ranked 64th overall in the Forbes World's Most Innovative Companies ranking, making it
both the highest-ranked IT services company and the top Indian company. It is the world's
largest IT services provider. As of 2018, it is ranked eleventh on the Fortune India 500 list. In
April 2018, TCS became the first Indian IT company to reach $100 billion market
capitalisation, and second Indian company ever (after Reliance Industries achieved it in
2007) after its market capitalisation stood at ₹6,79,332.81 crore ($102.6 billion) on
the Bombay Stock Exchange.
In 2016–2017, Parent company Tata Sons owned 20% of TCS and more than 70% of

Tata Sons' dividends were generated by TCS. In March 2018, Tata Sons decided to sell
stocks of TCS worth $1.25 billion in a bulk deal.
https://en.wikipedia.org/wiki/Tata_Consultancy_Services
20.ITC Limited
ITC Limited is an Indian multinational conglomerate company headquartered in

Kolkata, West Bengal. Established in 1910 as the 'Imperial Tobacco Company of India
Limited', the company was renamed as the 'India Tobacco Company Limited' in 1970 and
later to 'I.T.C. Limited' in 1974. The dots in the name were removed in September 1974 for
the company to be renamed as 'ITC Limited' where 'ITC' would no longer be an initialism.
The company completed 100 years in 2010 and as of 2012–13, had an annual turnover of
US$8.31 billion and a market capitalization of US$52 billion. It employs over 30,000 people
at more than 60 locations across India and is part of Forbes 2000 list.
https://en.wikipedia.org/wiki/ITC_Limited
22.Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited (NSE: SUNPHARMA, BSE: 524715) is an
Indian multinational pharmaceutical company headquartered in Mumbai, Maharashtra that
manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients
(APIs) primarily in India and the United States. The company offers formulations in various
therapeutic areas, such as cardiology, psychiatry, neurology,
gastroenterology and diabetology.
It also provides APIs such as warfarin, carbamazepine, etodolac, and clorazepate, as

well as anti-cancers, steroids, peptides, sex hormones, and controlled substances.
https://en.wikipedia.org/wiki/Sun_Pharmaceutical
23.M&M
Mahindra & Mahindra Limited is an Indian multinational car manufacturing

corporation headquartered in Mumbai, Maharashtra, India. It was established in 1945 as
Muhammad & Mahindra and later renamed as Mahindra and Mahindra. It is one of the
largest vehicle manufacturers by production in India and the largest manufacturer of tractors
in the world. It is a part of the Mahindra Group, an Indian conglomerate.
It was ranked 17th on a list of top companies in India by Fortune India 500 in
2018. Its major competitors in the Indian market include Maruti Suzuki and Tata Motors.
https://en.wikipedia.org/wiki/Mahindra_%26_Mahindra
24.Axis Bank
Axis Bank is the third-largest Indian bank offering a wide assortment of financial
products. The bank has its head office in Mumbai, Maharashtra. It has 4,050 branches, 11,801
ATMs and 4,917 cash recyclers spread across the country as of 31 March 2019 and nine
international offices. The bank employs over 55,000 people and had a market capitalization
of ₹1.31 trillion (US$18 billion) (as on 31 March 2018). It sells financial services to large
and mid-size corporates, SME and retail businesses.
As of 30 June 2016, 30.81% shares are owned by promoters and promoter group
(United India Insurance Company Limited, Oriental Insurance Company Limited, National
Insurance Company Limited, New India Assurance Company Ltd, GIC, LIC and UTI). The
remaining 69.19% shares are owned by mutual funds, FIIs, banks, insurance companies,
corporate bodies and individual investors among others.
https://en.wikipedia.org/wiki/Axis_Bank
25.HCL
HCL Technologies Limited is an Indian multinational information technology (IT)

service and consulting company headquartered in Noida, Uttar Pradesh. It is a subsidiary of
HCL Enterprise. Originally a research and development division of HCL, it emerged as an
independent company in 1991 when HCL entered into the software services business.
The company has offices in 44 countries including the United Kingdom, the United

States, France, and Germany with a worldwide network of R&D, "innovation labs" and
"delivery centers", and 147,123 employees and its customers include 250 of the Fortune 500
and 650 of the Global 2000 companies. It operates across sectors including aerospace and
defense, automotive, banking, capital markets, chemical and process industries, energy and
utilities, healthcare, hi-tech, industrial manufacturing, consumer goods, insurance, life
sciences, manufacturing, media and entertainment, mining and natural resources, oil and gas,
retail, telecom, and travel, transportation, logistics & hospitality.
HCL Technologies is on the Forbes Global 2000 list. It is among the top 20 largest

publicly traded companies in India with a market capitalisation of $18.7 billion as of May
2017. As of September 2019, the company, along with its subsidiaries, had a consolidated
revenue of $9.3 billion.
https://en.wikipedia.org/wiki/HCL_Technologies
26.ONGC
Oil and Natural Gas Corporation (ONGC) is an Indian Multinational Crude Oil and

Gas Corporation. Its registered office is at New Delhi, India. It is a state-owned enterprise of
the Government of India, under the administrative control of the Ministry of Petroleum and
Natural Gas. It is the largest oil and gas exploration and production company in the country.
It produces around 70% of India's crude oil (equivalent to around 57% of the country's total
demand) and around 84% of its natural gas. In November 2010 Government of India gave
ONGC the Maharatna status.
In a government survey for fiscal year 2019-20, it was ranked as the largest profit
making PSU in India. It is ranked 7th among the Top 250 Global Energy Companies
by Platts.
ONGC was founded on 14 August 1956 by Government of India. It is involved in

exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and
operates over 11,000 kilometers of pipelines in the country. Its international subsidiary
ONGC Videsh currently has projects in 17 countries. ONGC has discovered 6 of the 7
commercially producing Indian Basins, in the last 50 years, adding over 7.1 billion tonnes of
In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a global decline of
production from matured fields, ONGC has maintained production from its brownfields like
Mumbai High, with the help of aggressive investments in various IOR (Improved Oil
Recovery) and EOR (Enhanced Oil Recovery) schemes. ONGC has many matured fields
with a current recovery factor of 25–33%. Its Reserve Replacement Ratio for between 2005
and 2013, has been more than one. During FY 2012–13, ONGC had to share the highest ever
under-recovery of INR 89765.78 billion (an increase of INR 17889.89 million over the
previous financial year) towards the under-recoveries of Oil Marketing Companies
(IOC, BPCL and HPCL). On 1 November 2017, the Union Cabinet approved ONGC for
acquiring majority 51.11% stake in HPCL (Hindustan Petroleum Corporation Limited). On
Jan 30th 2018, Oil & Natural Gas Corporation acquired the entire 51.11% stake of Hindustan
Petroleum Corporation.
https://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation
27.ICICI Bank
ICICI Bank Limited is an Indian multinational banking and financial

services company headquartered in Mumbai, Maharashtra with its registered office
in Vadodara, Gujarat. As of 2018, ICICI Bank is the second largest bank in India in terms of
assets and market capitalisation. It offers a wide range of banking products and financial
services for corporate and retail customers through a variety of delivery channels and
specialised subsidiaries in the areas of investment banking, life, non-life insurance, venture
capital and asset management. The bank has a network of 5,275 branches and 15,589 ATMs
across India and has a presence in 17 countries including India.
ICICI Bank is one of the Big Four banks of India. The bank has subsidiaries in the
United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong,
Qatar, Oman, Dubai International Finance Centre, China and South Africa; and
representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The
company's UK subsidiary has also established branches in Belgium and Germany.
https://en.wikipedia.org/wiki/ICICI_Bank
28.SBI
The State Bank of India (SBI) is an Indian multinational, public sector banking and
financial services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's
biggest corporations of 2019. It is the largest bank in India with a 23% market share in assets,
besides a share of one-fourth of the total loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank
of India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two "presidency banks" in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn became
the State Bank of India in 1955. The Government of India took control of the Imperial Bank
of India in 1955, with Reserve Bank of India (India's central bank) taking a 60% stake,
renaming it the State Bank of India.
https://en.wikipedia.org/wiki/State_Bank_of_India
29.Tech Mahindra Limited
Tech Mahindra Limited is an Indian multinational subsidiary of the Mahindra Group,

providing information technology (IT) services and business process outsourcing (BPO) to
companies in various vertical and horizontal markets. Anand Mahindra is the Chairman of
Tech Mahindra, which is headquartered at Pune and has its registered office in Mumbai.
As of November 2019, Tech Mahindra is a US$4.9 billion company with over

131,522+ employees across 90 countries. The company was ranked #5 in India's IT firms and
overall #111 in Fortune India 500 list for 2012. On 25 June 2013, Tech Mahindra announced
the completion of a merger with Mahindra Satyam. Tech Mahindra has 946 active clients as
of November 2019.
https://en.wikipedia.org/wiki/Tech_Mahindra
30.Infosys Limited
Infosys Limited is an Indian multinational corporation that provides business

consulting, information technology and outsourcing services. It has its headquarters
in Bangalore, Karnataka, India.
Infosys is the second-largest Indian IT company after Tata Consultancy Services by

2017 revenue and 596th largest public company in the world based on revenue. On March 29,
2019, its market capitalisation was $46.52 billion. The credit rating of the company is A−
(rating by Standard & Poor's)
(https://en.wikipedia.org/wiki/Infosys)
Reference
https://en.wikipedia.org/wiki/Hindustan_Unilever
https://en.wikipedia.org/wiki/Titan
https://en.wikipedia.org/wiki/HDFC_Bank
https://en.wikipedia.org/wiki/Asian_Paints
https://en.wikipedia.org/wiki/Nestl%C3%A9
https://en.wikipedia.org/wiki/IndusInd_Bank
https://en.wikipedia.org/wiki/Maruti_Suzuki
https://en.wikipedia.org/wiki/Power_Grid_Corporation_of_India
https://en.wikipedia.org/wiki/Housing_Development_Finance_Corporation
https://en.wikipedia.org/wiki/UltraTech_Cement
https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank
https://en.wikipedia.org/wiki/Bajaj_Finance
https://en.wikipedia.org/wiki/Bajaj_Auto
https://en.wikipedia.org/wiki/Reliance_Industries_Limited
https://en.wikipedia.org/wiki/Tata_Steel
https://en.wikipedia.org/wiki/NTPC_Limited
https://en.wikipedia.org/wiki/Hero_MotoCorp
https://en.wikipedia.org/wiki/Larsen_%26_Toubro
https://en.wikipedia.org/wiki/Bharti_Airtel
https://en.wikipedia.org/wiki/Tata_Consultancy_Services
https://en.wikipedia.org/wiki/ITC_Limited
https://en.wikipedia.org/wiki/Sun_Pharmaceutical
https://en.wikipedia.org/wiki/Mahindra_%26_Mahindra
https://en.wikipedia.org/wiki/Axis_Bank
https://en.wikipedia.org/wiki/HCL_Technologies
https://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation
https://en.wikipedia.org/wiki/ICICI_Bank
https://en.wikipedia.org/wiki/State_Bank_of_India
https://en.wikipedia.org/wiki/Tech_Mahindra
https://en.wikipedia.org/wiki/Infosys
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
COMPANY SECTOR
HINDUNILVR Personal Care
TITAN Miscellaneous
HDFCBANK Banks – Private Sector
ASIANPAINT Paints And Varnishes
NESTLEIND Food Processing
INDUSINDBK Banks – Private Sector
MARUTI Auto - Cars And Jeeps
POWERGRID Power – Generation And Distribution
HDFC Finance – Housing
ULTRACEMCO Cement – Major
KOTAKBANK Banks – Private Sector
BAJFINANCE Finance – Leasing a5nd Hire
BAJAJ-AUTO Auto – 2 And 3 Wheelers
RELIANCE Refineries
TATASTEEL Steel - Large
NTPC Power – Generation And Distribution
HEROMOTOCO Auto – 2 And 3 Wheelers
LT Infrastructure – General
BHARTIARTL Telecommunications – Service
TCS Computers – Software
ITC Cigarettes
SUNPHARMA Pharmaceutical
M&M Auto – Cars And Jeeps
AXISBANK Banks – Private Sector
HCLTECH Computers – Software
ONGC Oil Drilling And Exploration
ICICIBANK Banks – Private Sector
SBIN Banks – Public Sector
TECHM Computers- Software
INFY Computers – Software
Table.4.1
BETA VALUE OF BANKING SECTOR
S.No. Security Name Sector Beta

1 HDFCBANK Banking Sector 0.80
2 INDUSINDBK Banking Sector 1.04
3 KOTAKBANK Banking Sector 1.04
4 AXISBANK Banking Sector 1.45
5 ICICIBANK Banking Sector 1.43
6 SBIN Banking Sector 1.64
Source: Compiled from secondary data
The table.4.1 depicts that beta value banking sector for the period of 2010 to 2019.
SBIN reveals maximum beta value 1.64 and followed by AXISBANK 1.45. The lowest beta
value of HDFCBANK 0.84. It is clear that beta which has more than one which is riskier and
gives high return.
It is found out that SBIN reveals maximum beta value lowest of HDFCBANK.
TABLE.4.2
BETA OF VALUE OF COMPUTER SOFTWARE SECTOR
S.NO. Security Name Sector Beta
1 TCS Computer Software 0.48
2 HCLTECH Computer Software 0.58
3 TECHM Computer Software 0.70
4 INFY Computer Software 0.81
The table.4.2 depicts that beta value computer software sector for the period of 2010
to 2019. INFY reveals maximum beta value 0.81 and followed by TECHM 0.70. The lowest
beta value of TCS 0.48. It is clear that beta which has more than one which is riskier and
gives high return.
It is found out that INFY reveals maximum beta value lowest of TCS.
TABLE.4.3.
BETA VALUE OF AUTO MOBILE
1 BAJAJ-AUTO Auto Mobile 0.85

2 HEROMOTOCO Auto Mobile 0.92
3 M&M Auto Mobile 1.00
4 MARUTI Auto Mobile 1.02
The table.4.3 depicts that beta value computer auto mobile sector for the period of
2010 to 2019. MARUTI reveals maximum beta value 1.02 and followed by M&M 1.00. The
lowest beta value of BAJAJ-AUTO 0.85. It is clear that beta which has more than one which
is riskier and gives high return.
It is found out that MARUTI reveals maximum beta value lowest of BAJAJ-AUTO.
TABLE.4.4.
BETA VALUE OF POWER – GENERATION AND DISTRIBUTION
1 Power – Generation and
POWERGRID 0.70
Distribution
NTPC 0.81
Distribution
The table.4.4 depicts that beta value power – generation and distribution for the
period of 2010 to 2019. NTPC reveals maximum beta value 0.81 . The lowest beta value of
POWERDGRID 0.70. It is clear that beta which has more than one which is riskier and gives
high return.
It is found out that NTPC reveals maximum beta value lowest of POWERGRID.
TABLE.4.5.
BETA VALUE OF FINANCE
1 HDFC Finance 1.10
2 BAJFINANCE Finance 1.17
SBIN reveals maximum beta value 1.64 and followed by AXISBANK 1.45. The lowest beta
value of HDFCBANK 0.84. It is clear that beta which has more than one which is riskier and
gives high return.
It is found out that SBIN reveals maximum beta value lowest of HDFCBANK.
TABLE.4.6.
BETA VALUE OF OTHER SECTORS
1 HINDUNILVR Personal care 0.58

2 TITAN Miscellaneous 0.87
3 ASIANPAINT Paints and varnishes -0.82
4 NESTLEIND Food processing 0.60
5 ULTRACEMCO Cement - major 1.07
6 RELIANCE Refineries 1.13
7 TATASTEEL Steel - Large 1.48
8 LT Infrastucture - general 1.20
9 Telecommunication -
BHARTIARTL 0.86
service
10 ITC Cigarettes 0.76
11 SUNPHARMA Pharmaceutical 0.81
12 Oil Drilling And
ONGC 1.11
Exploration
TATASTEEL reveals maximum beta value 1.48 and followed by RELIANCE 1.13. The
lowest beta value of ASIANPAINT -0.82. It is clear that beta which has more than one which
is riskier and gives high return.
It is found out that TATASTEEL reveals maximum beta value lowest of

ASIANPAINT.
Table.4.7
RETURN VALUE OF BANKING SECTOR
S.No. Security Name Sector Return

4 AXISBANK Banking Sector -63.63
5 ICICIBANK Banking Sector -113.01
6 SBIN Banking Sector -178.43
The table.4.7 depicts that return value banking sector for the period of 2010 to 2019.
INDUSINDBK reveals maximum return value 128.00 and followed by HDFCBANK 113.23.
The lowest return value of SBIN -178.43. It is clear that return which has more than one
which is riskier and gives high return.
It is found out that INDUSINDBK reveals maximum return value lowest of SBIN.
TABLE.4.8
RETURN OF VALUE OF COMPUTER SOFTWARE SECTOR
S.NO. Security Name Sector Return
1 TCS Computer Software -7.30
2 HCLTECH Computer Software -26.42
3 TECHM Computer Software -84.73
4 INFY Computer Software -149.08
The table.4.8 depicts that return value computer software sector for the period of 2010
to 2019. TCS reveals maximum return value -7.30 and followed by HCLTECH -26.42. The
lowest return value of INFY -149.08. It is clear that return which has more than one which is
riskier and gives high return.
It is found out that TCS reveals maximum return value lowest of INFY.
TABLE.4.9.
RETURN VALUE OF AUTO MOBILE

3 M&M Auto Mobile -39.89
The table.4.9 depicts that return value computer auto mobile sector for the period of
2010 to 2019. MARUTI reveals maximum return value 122.80 and followed by BAJAJ-
AUTO 34.82. The lowest return value of M&M -39.89. It is clear that return which has more
than one which is riskier and gives high return.
It is found out that MARUTI reveals maximum return value lowest of M&M.
TABLE.4.10.
RETURN VALUE OF POWER – GENERATION AND DISTRIBUTION
POWERGRID 61.90
Distribution
NTPC 11.83
Distribution
The table.4.10 depicts that return value power – generation and distribution for the
period of 2010 to 2019. POWERGRID reveals maximum return value 61.90. The lowest
return value of NTPC 11.83. It is clear that return which has more than one which is riskier
and gives high return.
It is found out that POWERGRID reveals maximum return value lowest of NTPC.
TABLE.4.11.
RETURN VALUE OF FINANCE
1 HDFC Finance 79.45
HDFC reveals maximum return value 79.45. The lowest return value of BAJFINANCE
34.82. It is clear that return which has more than one which is riskier and gives high return.
It is found out that HDFC reveals maximum return value lowest of BAJFINANCE.
TABLE.4.12.
RETURN VALUE OF OTHER SECTORS

3 ASIANPAINT Paints and varnishes -101.69
9 Telecommunication -
BHARTIARTL 4.82
service
10 ITC Cigarettes -16.02
11 SUNPHARMA Pharmaceutical -18.23
12 Oil Drilling And
ONGC -71.49
Exploration
TITAN reveals maximum return value 145.16 and followed by HINDUNILVR 103.73. The
lowest return value of ASIANPAINT -101.69. It is clear that return which has more than one
which is riskier and gives high return.
It is found out that TITAN reveals maximum return value lowest of ASIANPAINT.
Table.4.13.
(RN-RF)/Β VALUE OF BANKING SECTOR
S.No. Security Name Sector (RN-RF)/Β

4 AXISBANK Banking Sector -47.38
5 ICICIBANK Banking Sector -82.81
6 SBIN Banking Sector -112.15
The table 4.13 exhibits the excess return to beta ratio for BSE SENSEX stocks. It is
clear that, HDFCBANK stocks yielded the maximum excess return to beta ratio (134.76) and
followed by INDUSINDBK (117.85) and so on. The lowest excess return to beta ratio are
AXISBANK (-47.38).it is clear that beta value which has more than one which is riskier
stock and gives high return.
It is found out that HDFCBANK reveals maximum (RN-RF)/B value lowest of

AXISBANK.
TABLE.4.14.
(RN-RF)/Β OF VALUE OF COMPUTER SOFTWARE SECTOR
S.NO. Security Name Sector (RN-RF)/Β
1 TCS Computer Software -35.82
2 HCLTECH Computer Software -53.86
3 TECHM Computer Software -127.39
4 INFY Computer Software -189.82
clear that, TCS stocks yielded the maximum excess return to beta ratio (-35.82) and followed
by HCLTECH (-53.86) and so on. The lowest excess return to beta ratio are INFY (-
189.82).it is clear that beta value which has more than one which is riskier stock and gives
high return.
It is found out that TCS reveals maximum beta (RN-RF)/B lowest of INFY.
TABLE.4.15.
(RN-RF)/Β VALUE OF AUTO MOBILE

3 M&M Auto Mobile -44.70
clear that, MARUTI stocks yielded the maximum excess return to beta ratio (115.50) and
followed by BAJAJ-AUTO (35.07) and so on. The lowest excess return to beta ratio are
M&M (-44.70).it is clear that beta value which has more than one which is riskier stock and
gives high return.
It is found out that MARUTI reveals maximum (RN-RF)/B value lowest of M&M.
TABLE.4.16.
(RN-RF)/Β VALUE OF POWER – GENERATION AND DISTRIBUTION
POWERGRID 81.75
Distribution
NTPC 8.43
Distribution
clear that, POWERGRID stocks yielded the maximum excess return to beta ratio (81.75). The
lowest excess return to beta ratio are NTPC (8.43).it is clear that beta value which has more
than one which is riskier stock and gives high return.
It is found out that POWERGRID reveals maximum (RN-RF)/B value lowest of

NTPC.
TABLE.4.17.
(RN-RF)/Β VALUE OF FINANCE
1 HDFC Finance 67.93
clear that, HDFC stocks yielded the maximum excess return to beta ratio (67.93). The lowest
excess return to beta ratio are BAJFINANCE (40.81).it is clear that beta value which has
more than one which is riskier stock and gives high return.
It is found out that HDFC reveals maximum (RN-RF)/B value lowest of

BAJFINANCE.
TABLE.4.18.
(RN-RF)/Β VALUE OF OTHER SECTORS

3 ASIANPAINT Paints and varnishes 130.03
9 BHARTIARTL Telecommunication - service -0.23
10 ITC Cigarettes -27.64
11 SUNPHARMA Pharmaceutical -28.67
12 ONGC Oil Drilling And Exploration -68.94
clear that, HINDUNILVR stocks yielded the maximum excess return to beta ratio (170.54)
and followed by TITAN (161.81) and so on. The lowest excess return to beta ratio are ONGC
(-68.94).it is clear that beta value which has more than one which is riskier stock and gives
high return.
It is found out that HINDUNILVR reveals maximum (RN-RF)/B value lowest of

ONGC.
CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION
==================================================================
FINDINGS OF THE STUDY
FINDINGS OF BETA ANALYSIS:
 It is found at that SBIN reveals maximum beta value lowest of HDFCBANK.

 It is found at that INFY reveals maximum beta value lowest of TCS.
 It is found at that MARUTI reveals maximum beta value lowest of BAJAJ-AUTO.
 It is found at that NTPC reveals maximum beta value lowest of POWERGRID.
 It is found at that SBIN reveals maximum beta value lowest of HDFCBANK.
 It is found at that TATASTEEL reveals maximum beta value lowest of
ASIANPAINT.
FINDINGS OF RETURN ANALYSIS:

 It is found at that INDUSINDBK reveals maximum return value lowest of SBIN.
 It is found at that TCS reveals maximum return value lowest of INFY.
 It is found at that MARUTI reveals maximum return value lowest of M&M.
 It is found at that POWERGRID reveals maximum return value lowest of NTPC.
 It is found at that HDFC reveals maximum return value lowest of BAJFINANCE.
 It is found at that TITAN reveals maximum return value lowest of ASIANPAINT.
FINDINGS OF (RN-RF)/B ANALYSIS:

 It is found out that HDFCBANK reveals maximum (RN-RF)/B value lowest of
AXISBANK.
 It is found out that TCS reveals maximum beta (RN-RF)/B lowest of INFY.
 It is found out that MARUTI reveals maximum (RN-RF)/B value lowest of M&M.
 It is found out that POWERGRID reveals maximum (RN-RF)/B value lowest of
NTPC.
 It is found out that HDFC reveals maximum (RN-RF)/B value lowest of
BAJFINANCE.
 It is found out that HINDUNILVR reveals maximum (RN-RF)/B value lowest of
ONGC.

Introduction and Design of The Study

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Introduction and Design of The Study

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CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

1.2 STATEMENT OF THE PROBLEM

1.7 TOOLS USED FOR THE STUDY

The daily returns are calculated as follow;

RISK-FREE RATE OF RETURN (RF)

EXCESS RETURN TO BETA RATIO

The Cut-off Point is calculated as follow;

Ci = (σ2m*∑((Rn-Rf) β/)/σ2ei) / 1+ σ2m*∑β^2/σ2ei

Where Zi= βi^2/σ^2ei (Rn-Rf/β-C)

1.8 LIMITATION OF THE STUDY

THEORETICAL CONCEPTS AND REVIEW OF LITERATURE

2.1 THEORETICAL CONCEPTS

2.2 REVIEW OF LITERATURE

Joiceswarnalatha and Chethan Raju (2017) the companies from telecommunications

SeDrema Shokeen (2017) the construction of an optimal portfolio by applying Sharpe‘s

S. I. U. Chasanah and I. G. P. Purnaba (2017) based on the M-V Criterion, it can be

Raghavendra and S Bendigeri (2018) in present study, portfolio is constructed from IT

2. An International Peer-reviewed Journal, 32, 52 – 58

3. ADMIFMS International Management Research Conference, 24 – 29

4. National Journal of Advanced Research, 2, 28 – 31

5. ZENITH International Journal of Business Economics & Management Research, 1,

7. An Indexed Refereed Journal of Higher Education, 10, 207 – 222

8. Journal Of The Gujarat Research Society, 21, 362 – 376

9. Northfield Asia Research Seminar, 1 – 43

10. Journal of Management Research and Analysis, 4 , 74 – 83

11. International Journal of Economics, Commerce and Management, 176 – 181

12. International Journal of Recent Scientific Research, 8, 1 – 6

13. International Journal Of Management, 6, 87 – 96

15. Orion journals, 32, 52 – 78

16. Hindawi Publishing Corporation Economics Research International, 1 – 10

17. InterContinental Journal Of Banking, Insurance And Finance, 2, 17 – 31

18. International Journal of Business and Administration Research Review, 3, 11 – 18

19. International Journal Of Research Culture Society, 2, 90 – 96

21. Srusti Management Review, 8, 6 – 11

22. Asia Pacific Journal of Research, 1, 232 – 237

23. International Journal of Business Marketing and Management (IJBMM), 2, 1 – 15

24. SUMEDHA Journal of Management, 7, 126 – 134

25. Journal of Business Studies, 39 – 56

27. International Journal of Management and Commerce Innovations, 5, 806 – 813

28. International Journal of Engineering and Management Research, 7, 323 – 328

30. InterContinental Journal Of Finance Research Review, 5, 62 – 69

PROFILE OF THE STUDY AREA

3.1 PROFILE OF THE STUDY AREA

HUL was established in 1933 as Lever Brothers and following merger of constituent

HDFC Bank was incorporated in 1994, with its registered office

The company was started in a garage in Gaiwadi, Girgaum - Mumbai by four friends

Nestlé S.A. is a Swiss multinational food and drink processing conglomerate

Nestlé's products include baby food, medical food, bottled water, breakfast cereals,

6.IndusInd Bank Limited

IndusInd Bank Limited is an Indian new generation bank in Pune, established in

Maruti Limited, formerly known as Maruti Udyog Limited, is an automobile

8.Power Grid Corporation of India Limited

The Power Grid Corporation of India Limited (POWERGRID) is an Indian state-

10.UltraTech Cement Limited

Ultratech cement limitedis an Indian cement company based in Mumbai. In February

11.Kotak Mahindra Bank

In 1985 Uday Kotak established what became an Indian financial services

In a study by Brand Finance Banking 500 published in February 2014 by Banker

12.Bajaj Finance Limited

Bajaj Finance Limited, a subsidiary of Bajaj Finserv, is an Indian Non-Banking

Headquartered in Pune, Maharashtra, the company has 294 consumer branches and

Ci = (σ2m∑((Rn-Rf) β/)/σ2ei) / 1+ σ2m∑β^2/σ2ei