Portfolio Management Project Report

A STUDY ON PORTFOLIO AND INVESTMENT DECISIONS WITH REFERENCE
TO BANKING INDUSTRY IN INDIA
A PROJECT REPORT
Submitted in partial fulfillment of the requirement
for the award of the degree of
BATCHELOR OF BUSINESS ADMINISTRATION

BY
MANGAPURAM SUVARNIKA
(Reg. No. 0519036084)
Under the Guidance of

B.V.S. VISHNU THEJ
Associate professor
DEPARTMENT OF MANAGEMENT STUDIES

EMERALD’S DEGREE COLLEGE
(Affiliated to S. V. University)
TIRUPATI
2020-2021
EMERALD’S DEGREE COLLEGE
(Affiliated to S.V.University)
LIC ROAD, TIRUPATI-517501
Certificate
REGD.NO:0519036084
This is to certify that the report entitled “ A STUDY ON PORTFOLIO
EVALUATION AND INVESTMENT DECISION WITH THE REFERENCE TO
BANKING INDUSTRY IN INDIA”, submitted by Mangapuram Suvarnika
(Reg.No.0519036084) in partial fulfilment of the requirements for the award of the degree of
master of Business Administration by the EMERALD’S DEGREE COLLEGE , affiliated to
S.V.University, Tirupati during 2020-2021.
Project Guide Head
Principal
DECLARATION
I hereby declare that the project report entitled “A STUDY

ON PORTFOLIO EVALUATION AND INVESTMENT DECISION WITH
REFERENCE TO BANKING INDUSTRY IN INDIA “ is original and bonfires work of my
own in the partial fulfillment of the requirement for the award of the degree of master of
business administration and submitted to the department of management studies, emerald’s
advanced institute of management studies, affiliated to S.V.University, Tirupati.
I also hereby declare that this project has not been

submitted at any time to any other University or institute for the award of Degree or Diploma.
Date: MANGAPURAM SUVARNIKA

Place: TIRUPATI. ( Reg. No. 0519036084)
AS ADITYA TRADING SOLUTIONS
of NSE,
Member BSE, MCX, MSET and NCDEX
SEBI- Registration Number-IN-DP-CDSL-656-2012
Date: 09.07.2021
TO WHOMSsOEVER IT MAY CONCERN
This is certify that Ms. Mangapuram Survanika, (0519036084) student of

to
Emeralds Degree College, Tirupati, has

successfully completed her project work
entitled "A STUDY ON PORTFOLIO EVALUATION AND INVESTMENT DECISIONS
WITH
REFERENCE TO BANKING INDUSTRY IN INDIA" from 26.03.2021 to 09.07.2021
We wish her all the best in all her future endeavors.
Thanking You,
Yours Truly,
Aditya Trading Solutions Private Ltd.
A
ATS
A Ksheera Sagar,
Equity Research Analyst
Derivative Analyst
Aditya Trading Solutions Private Ltd.

D:No 105, Sri Vignesh Towers, Near Leela Mahal Circle,
Beside Keys Vihas Hotel | Tirupati 517501 | Andhra Pradesh | Ph:+91-9000874642.
TABLE OF CONTENTS
LIST OF TABLES
LIST OF GRAPHS
CHAPTER-1 INTRODUCTION AND COMPANY PROFILE 1
INTRODUCTION 2
COMPANY PROFILE 12
INDUSTRY PROFILE 11
CHAPTER-2 LITERATURE REVIEW 27
REVIEW OF LITERATURE 28
CHAPTER-3 RESEARCH METHODOLOGY 41
OBJECTIVES OF THE STUDY 42
NEED FOR THE STUDY 42
LIMITATION OF THE STUDY 42
SOURCES OF DATA 43
CHAPTER-4 DATA ANALYSIS AND INTERPRETATION 44
DATA ANALYSIS 45
CHAPTER-5 FINDINGS, SUGGESTION AND CONCLUSIONS 62
FINDINGS 63
SUGGESTIONS 64
CONCLUSION 65
BIBILIOGRAPHY 66
REFERENCE 67
WEBSITES 69
LIST OF TABLES
BUILDING PORTFOLIO 1 46
CALCULATION OF RATE OF RETURN FOR THE YEAR 2016 47
CALCULATION OF STANDARD DEVIATION 57
CALCULATION OF BETA 58
BUILDING PORTFOLIO 2 59
CALCULATION OF BETA AND COMPARING PORTFOLIO 1&2 60
LIST OF GRAPHS
OPENING PRICE OF PORTFOLIO IN THE YEAR 2016 48
CLOSING PRICE OF PORTFOLIO IN THE YEAR 2016 48
RETURNS FOR PORTFOLIO IN THE YEAR 2016 49
PORTFOLIO EVALUATION AND INVESTMENT DECISION
CHAPTER -1
INTRODUCTION AND
COMPANY PROFILE
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INTRODUCTION
“Finance” is a broad term that describes activities associated with banking, leverage or debt,
credit, capital markets, money, and investments. Basically, finance represents money
management and the process of acquiring needed funds. Finance also encompasses the
oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that
make up financial system.
Concepts in finance originate from microeconomic and macroeconomic theories. One of the
most fundamental theories is the time value of money, which essentially states that a dollar
today is worth more than a dollar in the future.
The finance field includes three main subcategories: personal finance, corporate finance, and
public (government) finance.
Financial services are the processes by which consumers and businesses acquire financial
goods. The financial services sector is a primary driver of a nations’ economy.
FINANCIAL MARKET
Definition: Financial Market refers to a marketplace, where creation and trading of financial
assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a
crucial role in allocating limited resources, in the country’s economy. It acts as an
intermediary between the savers and investors by mobilising funds between them.
FUNCTIONS
Price Determination: Demand and supply of an asset in a financial market help to determine
their price. Investors are the supplier of the funds, while the industries are in need of the
funds. Thus, the interaction between these two participants and other market forces helps to
determine the price.
Mobilization of savings: For an economy to be successful it is crucial that the money does
not sit idle. Thus, a financial market helps in connecting those with money with those who
require money.
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Ensures liquidity: Assets that buyers and sellers trade in the financial market have high
liquidity. It means that investors can easily sell those assets and convert them into cash
whenever they want. Liquidity is an important reason for investors to participate in trade.
Saves time and money: Financial markets serve as a platform where buyers and sellers can
easily find each other without making too much efforts or wasting time. Also, since these
markets handle so many transactions it helps them to achieve economies of scale. This results
in lower transaction cost and fees for the investors.
CLASSIFICATION OF FINANCIAL MARKETS :
By Nature of Claim
Debt Market: The market where fixed claims or debt instruments, such as debentures or bonds
are bought and sold between investors.
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Equity Market: Equity market is a market wherein the investors deal in equity instruments. It
is the market for residual claims.
By Maturity of Claim
Money Market: The market where monetary assets such as commercial paper, certificate of
deposits, treasury bills, etc. which mature within a year, are traded is called money market. It
is the market for short-term funds. No such market exist physically; the transactions are
performed over a virtual network, i.e. fax, internet or phone.
Capital Market: The market where medium and long term financial assets are traded in the
capital market. It is divided into two types:
Primary Market: A financial market, wherein the company listed on an exchange, for the first
time, issues new security or already listed company brings the fresh issue.
Secondary Market: Alternately known as the Stock market, a secondary market is an organised
marketplace, wherein already issued securities are traded between investors, such as
individuals, merchant bankers, stockbrokers and mutual funds.
By Timing of Delivery
Cash Market: The market where the transaction between buyers and sellers are settled in real-
time.
Futures Market: Futures market is one where the delivery or settlement of commodities takes
place at a future specified date.
By Organizational Structure
Exchange-Traded Market: A financial market, which has a centralised organisation with the
standardised procedure.
Over-the-Counter Market: An OTC is characterised by a decentralised organisation, having

customised procedures.
Since last few years, the role of the financial market has taken a drastic change, due to a number
of factors such as low cost of transactions, high liquidity, investor protection, transparency in
pricing information, adequate legal procedures for settling disputes, etc.
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TYPES OF FINANCIAL MARKETS
Over the Counter (OTC) Market – They manage public stock exchange, which is not listed
on the NASDAQ, American Stock Exchange, and New York Stock Exchange. The OTC
market dealing with companies are usually small companies that can be traded in cheap and
has less regulation.
Bond Market – A financial market is a place where investors loan money on bond as security
for a set if time at a predefined rate of interest. Bonds are issued by corporations, states,
municipalities, and federal governments across the world.
Money Markets – They trade high liquid and short maturities, and lending of securities that
matures in less than a year.
Derivatives Market –They trades securities that determine its value from its primary asset.
The derivative contract value is regulated by the market price of the primary item the
derivatives market securities, including futures, options, contracts-for-difference, forward
contracts, and swaps.
Forex Market – It is a financial market where investors trade in currencies. In the entire world,
this is the most liquid financial market.
SECURITIES AND EXCHANGE BOARD OF INDIA

The Securities and Exchange Board of India (SEBI) is the most important regulator of
securities markets in India. SEBI is the counterpart of the Securities and Exchange Commission
(SEC) in the U.S. Its stated objective is “to protect the interests of investors in securities and to
promote the development of and to regulate the securities market and for matters connected
therewith or incidental thereto.
OBJECTIVES OF SEBI
. To monitor the activities of the stock exchange.
· To safeguard the rights of the investors
· To curb fraudulent practices by maintaining a balance between statutory regulation

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and self-regulation.
· To define the code of conduct for the brokers, underwriters, and other intermediaries.
STRUCTURE OF SEBI
The Board of SEBI comprises of nine members. The Board is an aggregate of the following:
One Chairman of the board – appointed by the Central Government of India
One Board member – appointed by the Central Bank, that is, the RBI
Two Board members – hailing from the Union Ministry of Finance
Five Board members – elected by the Central Government of India
The Chairman of SEBI, in addition to overseeing the Board, also looks over the
Communications, Vigilance, and Internal Inspection Department.
There are four whole-time members in the organizational structure. The whole-time members
are allocated a number of departments that they have to oversee. Each department is
individually headed by an executive director. The executive directors report to specific whole-
time members.
The organizational structure of SEBI consists of more than 25 departments, such as Foreign
Portfolio Investors and Custodians (FPI&C), Corporation Finance Department (CFD),
Information Technology Department (ITD), Department of Economic and Policy Analysis
(DEPA-I,II, & III), Investment Management Department, Legal Affair Department, Treasury
and Accounts Divisions (T&A), and National Institute of Securities Market (NISM)
SEBI ACT AND GUIDELINES:
SEBI was established as a non-statutory body in 1988, entrusted with observing the stock
market activities. The SEBI Act of 1922 converted SEBI into a statutory authority with
autonomous powers. The Act provided SEBI with the authority to regulate capital markets, not
just observe but enforce guidelines.
The SEBI Act 1992 covers the following areas:
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• Composition and actions of the SEBI Board members

• Powers and Functions of the Board
• Fund sources of SEBI, as in grants made available by the Union Government
• Rules on Penalties and legal pathways
• Defines the judicial authority of SEBI
• The extent of powers of the Union Government to supersede SEBI
SEBI also has to adhere to a list of SEBI guidelines, pertaining to areas such as:
• Employee Stock Option schemes

• Disclosure and Investor Protection norms
• Legal Proceedings
• Anti-money laundering norms
• Listing and delisting of securities
• Opening of trading terminals overseas
MAJOR STOCK EXCHANGES IN INDIA
NATIONAL STOCK EXCHANGE
The National Stock Exchange was founded in 1992. It was recognized as a stock exchange by
SEBI under the Securities Contracts (Regulation) Act, 1956 and the operation commenced in
1994. Vikram Limaye is the Managing Director & Chief Executive Officer of National Stock
Exchange of India Ltd (NSE).
It was the first exchange in India to provide fully computerized electronic trading. NSE is one
of the pioneers in technology and innovation which ensured the high-end performance of its
systems. The exchange supports more than 3,000 VSAT terminals, making the NSE the largest
private wide-area network in the country.
Its automated system makes it more reliable and efficient in comparison to the Bombay Stock
Exchange(BSE).
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BOMBAY STOCK EXCHANGE
The Bombay Stock Exchange was founded on July 9, 1875. It is Asia’s first stock exchange.
In 1875, eminent businessman Premchand Roychand officially founded the Native Share
andStock Brokers Association which was later renamed the Bombay Stock Exchange.
It is also the world’s fastest exchange with a median trade speed of six microseconds.
The Indian government recognized it officially as per the Securities Contracts Regulation Act
in August 1957.
The BSE joined the United Nations Sustainable Stock Exchange initiative in 2012. Shri
Ashishkumar Chauhan is the MD & CEO of BSE (Bombay Stock Exchange).
Approximately 5000 companies are listed in BSE
Important Indices
1. Sensex (Based on 30 companies)
2. BSE-100 (Based on 100 companies)
3. BSE-200 (Based on 200 companies)
4. Dollex (Based on the dollar value of BSE-200 companies)
5. Bankex (Based on shares of banks only)
6. Reality Index (Based on shares of real estate companies. Sensex (Sensitive Index) – Most
important index of BSE – Index of a stock exchange measures change in market capitalization
PORTFOLIO MANAGEMENT
Portfolio management can be defined as the process of managing individuals’ investments so
that they maximise their earnings within a given time horizon. Furthermore, such practices
ensure that the capital invested by individuals is not exposed to too much market risk. The
entire process is based on the ability to make sound decisions. Typically, such a decision relates
to – achieving a profitable investment mix, allocating assets as per risk and financial goals and
diversifying resources to combat capital erosion.
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OBJECTIVES OF PORTFOLIO MANAGEMENT
The fundamental objective of portfolio management is to help select best investment options
as per one’s income, age, time horizon and risk appetite.
Some of the core objectives of portfolio management are as follows –
• Capital appreciation
• Maximising returns on investment
• To improve the overall proficiency of the portfolio
• Risk optimisation
• Allocating resources optimally
• Ensuring flexibility of portfolio
• Protecting earnings against market risks
TYPES OF PORTFOLIO MANAGEMENT
Active portfolio management
In this type of management, the portfolio manager is mostly concerned with generating
maximum returns. Resultantly, they put a significant share of resources in the trading of
securities. Typically, they purchase stocks when they are undervalued and sell them off
when their value increases.
Passive portfolio management
This particular type of portfolio management is concerned with a fixed profile that aligns
perfectly with the current market trends. The managers are more likely to invest in index
funds with low but steady returns which may seem profitable in the long run.
Discretionary portfolio management
In this particular management type, the portfolio managers are entrusted with the authority
to invest as per their discretion on investors’ behalf. Based on investors’ goals and risk
appetite, the manager may choose whichever investment strategy they deem suitable.
Non-discretionary management
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Under this management, the managers provide advice on investment choices. It is up to

investors whether to accept the advice or reject it. Financial experts often recommended
investors.
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INDUSTRY PROFILE
The world’s biggest market are United States, United Kingdom, Japan, India, China, Pakistan,
Germany, France, South Korea, and Netherlands. There are currently securities exchange in
for all intents and purposes each created and most creating economy. The exchanging rundown
was more extensive in 1839 and the representatives were perceived by banks and vendors and
1840 and business advance issuing or to be executing was nearly begun by eighteenth century.
Business on corporate stocks and per takes in bank and cotton presses were begun in
Bombay by 1830’s. Slowly there was a quick development and advancement of business
venture and business that pulled in the financial specialists or players were the quantity of
agents were higher number i.e. 60 by the year 1860.
Offer insanity in India started with an emergency were the American common war had
broken out amid 1860-61 which prompt cessation cotton supply from united states to Europe.
After offer insanity in India there are more number of representative around 200-250 as it began
creating. The American common war was finished in year 1865 and deplorable fall was
reflected the merchants began to take upon and made a helpful spot to make exchange, amass
business. They found a road place in Bombay the road named Dalal-street. Later they formally
initiated and formally settled. “The Shares and Stocks Intermediary Association” additionally
called as the stocks trade in Bombay. In the year 1895, the stock trade gained a recommendation
in the same road and began to grow in this manner in 1899 the stock trade at Bombay was mix.
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COMPANY PROFILE
ADITYA TRADING SOLUTIONS
We are a full spectrum investment management house specializing in online commodity

trading. We are one of the earliest member of MCX and pioneers of online commodity broking
in Tirupati. Aditya trading solutions is promoted by young and dynamic entrepreneurs who
have years of proven experience in international derivative market like NYMEX and worked
with several FORTUNE 500c companies. We are the largest online commodity trading
company in Tirupati and our client base consists of a long list of satisfied institutional and retail
client base broking.
SERVICES PROVIDED BY THE COMPANY
FINANCIAL SERVICES
Capital market
The company is the master franchise for Aditya trading solutions Aditya Birla money (AB
MONEY) they customers to invest capital markets both in equity and debt segments. Company
has specialized derivatives division also where experienced and qualified team of professionals
offer unbiased advice on investments decision. Our advisory services with the able support of
Aditya Birla money is skilled to help our customers in maximising their gains by using
strategies based on the trends in the market. There will be constant monitoring of client
portfolio so that their returns are maximized and the risks are minimized. Giant Finance ensures
a smooth and rewarding trading experience for customers with their personalized services.
Wealth Management
Provide wealth management by understanding customers’ needs and develop customized

solutions to their varying needs. Company offers a range of investment alternatives in the fields
of mutual funds and insurance which will help in designing a portfolio as per the individual
requirements of our customers.
Corporate Loans
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There are different kinds of loans which are available to cater to the increasing needs of the
companies. However, it is important to identify the right kind of debt instrument which can
bring down the cost of dept. This may depend on different factors such as the nature of the
business, strength of the company’s cash flows, cyclicality of the sector, nature of assets etc.
the company advise clients on the loan syndication and help in raising funding through various
structured depth instruments.
Private Equity
Company assists the emerging companies in equity syndication by identifying companies,

which have clear business strategy and with significant opportunities to scale up and work with
them to raise funds through equity from venture capital and private equity firms.
Financial Research
They provide a bouquet of financial research services to investment banks, independent

advisory firms and corporate finance groups.
IT services
• Data Centre Solution

• Storage and Servers.
• Data Centre Built & Maintain.
• Virtualization.
• Cloud Computing.
• Data Protection.
• Backup& High Availability.
• Disaster Recovery.
• Power& Cooling.
Networking & Communication
• Networking, Management and Automation.

• Intelligent Structured cabling Solution.
• Routing/Switching/wireless Services.
• Video Conferencing.
• Voice and United Communications.
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Cloud Solutions
• Cloud Consulting.
• Architecting and Re-Architecting Cloud Infrastructure.
• Cloud Migration.
• Messaging, Collaboration and Critical Applications on Cloud.
• Sizing and Resizing IT infrastructure on Cloud.
• Cloud Support.
Security & Automation
• Surveillance & Access control. Networking & Communication

• Networking, Management and Automation.
• Intelligent Structured cabling Solution.
• Routing/Switching/wireless Services.
• Video Conferencing.
• Voice and United Communications.
Computing & Printing Solutions
• Managed Print Service

• Enterprise Printers
• Multifunction Printers
• Scanners and Accessories
• E-Printing
• Desktop/Notebook/Thin Client
• PDA/Smartphone
• Workstations /Desktop Machine
IT Management & Outsourcing
• Annual Management Contract

• Service Level Agreement
• Help Desk Support
• IT Operations (Data Centre)
• Systems & Network Administration
• After Hours Support
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We are a firm believer of Indian Stock Market. For any economy to grow, it needs to
have strong financial markets. We often hear people questioning of investing in stock market
and we tell them as long as several things that are part of our daily life are there to stay, we
would never have a day when the business activities would ever stop and so would be the Stock
Markets. We as human beings are evolving, changing, improving, in the very same way our
Stock Markets are also ever evolving and will continue to grow. whether we want to be part of
this or not. With this belief, we bring our clients to invest in markets. We have huge faith indian
Companies and that is why we have slogan “Its faith which makes anything possible”.
Unlike doing business on your own, Stock Market offers you to bet on businesses
which have pioneered in their Line of businesses. When you are investing money on a Front
line stock, you are actually investing on Great Management of Great Companies.
KOTAK MAHINDRA BANK
Kotak Mahindra Bank Limited is an Indian private sector bank headquartered in

Mumbai, Maharashtra, India. It offers banking products and financial services for corporate
and retail customers in the areas of personal finance, investment banking, life insurance,
and wealth management. As of February 2021, it is the third largest Indian private sector bank
by market capitalization, with 1600 branches & 2519 ATMs.
HISTORY
In 1985, Uday Kotak founded what later 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. With this, KMFL became the first non-
banking finance company in India to be converted into a bank.
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 a brand valuation of
around US$481 million and brand rating of AA+
MERGES AND ACQUISITIONS
ING Vysya Bank
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In 2015, Kotak Bank acquired ING Vysya Bank in a deal valued at ₹150
billion (US$2.1 billion). With the merger completed, Kotak Mahindra Bank had almost 40,000
employees, and the number of branches reached 1,261. After the merger, ING Group, which
controlled ING Vysya Bank, owned a 7% share in Kotak Mahindra Bank.
Ferbine
In 2021, the bank acquired a 9.99% stake in Ferbine, an entity promoted by Tata Group, to
operate a Pan-India umbrella entity for retail payment systems, similar to National Payments
Corporation of India.
HDFC BANK
the post issue equity share capital of Yes bank HDFC Bank Limited is an Indian Development
finance institution headquartered in Mumbai, Maharashtra. It has a base of 104,154 permanent
employees as of 30 June 2019. HDFC Bank is India’s largest private sector bank by assets. It
is the largest bank in India by market capitalisation as of March 2020.
HISTORY
A subsidiary of the Housing Development Finance Corporation, 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 Union Finance
Minister, Manmohan Singh.
As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764 cities.
The bank also installed 430,000 POS terminals and issued 23,570,000 debit cards and
12 million credit cards in FY 2017.
PRODUCT AND SERVICES
HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital products
are Payzapp and SmartBUY
MERGES AND ACQUISITIONS

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HDFC Bank merged with Times Bank in February 2000. This was the first merger of two
private banks in the New Generation private sector banks category. Times Bank was
established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group, India's
largest media conglomerate.
In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's board
approved the acquisition of CBoP for ₹95.1 billion in one of the largest mergers in the financial
sector in India.
INVESTMENTS
In 2021, the bank acquired a 9.99% stake in FERBINE, an entity promoted by Tata Group, to
operate a Pan-India umbrella entity for retail payment systems, similar to National Payments
Corporation of India.
In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000
crores in Yes bank. As per the scheme of reconstruction of Yes Bank, 75% of the total
investment by the corporation would be locked in for three years. On 14 March, Yes Bank
allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10 per share
(including ₹8 premium) to the Corporation aggregating to 7.97 percent of the post issue equity
share capital of Yes bank.
TATA CONSULTANCY SERVICES
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT)

services and consulting company, headquartered in Mumbai, Maharashtra, India. As of
February 2021 TCS is largest company in the IT sector in the world by Market capitalisation
of $169.2 billion. It is a subsidiary of the Tata Group and operates in 149 locations across 46
countries.
TCS is the second 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. 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 in market capitalisation, and second Indian company ever (after Reliance
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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 72.05% 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.
PRODUCTS AND SERVICES
TCS and its 67 subsidiaries provide a wide range of information technology-related products
and services including application development, business process outsourcing, capacity
planning, consulting, enterprise software, hardware sizing, payment processing, software
management, and technology education services. The firm's established software products
are TCS BaNCS and TCS MasterCraft.
Service Lines
TCS' services are currently organized into the following service lines (percentage of total TCS
revenues in the 2012-13 financial year generated by each respective service line is shown in
parentheses):
➢ Application development and maintenance (43.80%) value;

➢ Asset leverage solutions (2.70%);
➢ Assurance services (7.70%);
➢ Business process outsourcing (12.50%);
➢ Consulting (2.00%);
➢ Engineering and Industrial services (4.60%);
➢ Enterprise solution (15.21%); and
➢ IT infrastructure services (11.50%).
➢ Cognitive Business Operations.
WIPRO
Wipro Limited is an Indian multinational corporation that provides information technology,

consulting and business process services. It is headquartered in Bangalore, Karnataka, India. In
2013, Wipro separated its non-IT businesses and formed the privately owned Wipro
Enterprises. Wipro has shifted to Work from Anywhere model since March 2020.
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SUBSIDIARIES
Western India Products Limited
Wipro Limited is a provider of IT services, including Systems Integration, Consulting,

Information Systems outsourcing, IT-enabled services, and R&D services.
Wipro entered into the technology business in 1981 and has over 160,000 employees and
clients across 110 countries. IT revenues were at $7.1 billion for the year ended 31 March 2015,
with a repeat business ratio of over 95%.
Wipro GE Medical Systems
Wipro GE Medical Systems Limited is Wipro's joint venture with GE Healthcare South Asia.
It is engaged in the research and development of healthcare products. This partnership, which
began in 1990, today includes gadgets and equipment for diagnostics, healthcare IT and
services to help healthcare professionals combat cancer, heart disease, and other ailments.
There is complete adherence to Six Sigma quality standards in all products.
LISTING AND SHAREHOLDING
Listing: Wipro's initial public offering was in the 1946. Wipro's equity shares are listed
on Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and
the National Stock Exchange of India where it is a constituent of the S&P CNX
Nifty. The American Depositary Shares of the company are listed at the NYSE since October
2000.
Shareholding: The table provides the share holding pattern as of 30 September 2018.
Shareholders (as on 30 September 2018) Shareholding
Promoter group led by Azim Premji 74.31%
Public 25.21%
Employee trust 0.48%
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BRITANNIA
Britannia Industries Limited is an Indian food and beverage company. Founded in 1892 and
headquartered in Kolkata, it is one of India's oldest existing companies. It is now part of
the WadiaGroup headed by Nusli Wadia. The company sells its Britannia and Tiger brands
of biscuits, breads and dairy products throughout India and in more than 60 countries across
the world. Beginning with the circumstances of its takeover by the Wadia group in the early
1990s, the company has been mired in several controversies connected to its management.
However, it does enjoy a large market share and is exceedingly profitable.
HISTORY
The company was established in 1892 by a group of British businessmen with an investment
of ₹295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the
enterprise was acquired by the Gupta brothers, mainly Nalin Chandra Gupta, an attorney, and
operated under the name "V.S. Brothers." In 1918, C.H. Holmes, an English businessman based
in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was
launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling
interest in BBCo. Biscuits were in high demand during World War II, which gave a boost to
the company's sales. The company name was changed to the current "Britannia Industries
Limited" in 1979. In 1982, the American company Nabisco Brands, Inc. acquired the parent
of Peek Freans and became a major foreign shareholder.
PERFORMANCE AND PROFITABILITY
Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against
the market, and operating profits reached 18%. More recently, the company has been growing
at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannia's
annual revenue of Rs 22 billion comes from biscuits.
Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report. Britannia
has an estimated market share of 38%.
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CIPLA
Cipla limited is an Indian multinational pharmaceutical and biotechnology company,

headquartered in Mumbai, India. Cipla primarily develops medicines to treat respiratory,
cardiovascular disease, arthritis, diabetes, weight control and depression; other medical
conditions.
As of 17 September 2014, its market capitalisation was ₹517 billion, making it India's 42nd
largest publicly traded company by market value. It was founded by Khawaja Hameed as “The
Chemical Industry & Pharmaceutical Laboratories” in 1935 in Mumbai. The name of the
Company was changed to 'Cipla Limited' on 20 July 1984. In the year 1985, US FDA approved
the company's bulk drug manufacturing facilities. Led by the founder’s son Yusuf Hameed, a
Cambridge-educated chemist, the company provided generic AIDS and other drugs to treat
poor people in the developing world. In 1995, Cipla launched Defer prone, the world’s first
oral iron Celator. In 2001, Cipla offered medicines (antiretroviral) for HIV treatment at a
fractional cost (less than $350 per year per patient).
In 2013 Cipla acquired the South African company Cipla-Madero, kept it as a subsidiary, and
changed its name to Cipla Medora South Africa Limited. At the time of the acquisition Cipla-
Madero had been a distribution partner for Cipla and was South Africa's third biggest
pharmaceutical company. The company had been founded in 2002 and was known as Enaline
Pharmaceuticals Ltd. In 2005, Enaline bought all the shares of Cipla-Medora, which had been
a joint venture between Cipla and Madero Pharmaceuticals, a South African generics company,
and in 2008 it changed its name to Cipla-Medora.
Products and services: Cipla sells active pharmaceutical ingredients to other manufacturers as
well as pharmaceutical and personal care products, including Citalopram (anti-depressant),
Lamivudine and Fluticasone propionate. They are the world's largest manufacturer of
antiretroviral drugs.
Operations: Cipla has 34 manufacturing units in 8 locations across India and its presence in
100 countries. Exports accounted for 48% ₹49.48 billion of its revenue for FY 2013-14. Cipla
spent INR 517 cr. (5.4% of revenue) in FY 2013-14 on R&D activities. The primary focus
areas for R&D were development of new formulations, drug-delivery systems and APIs (active
pharmaceutical ingredients). Cipla also cooperates with other enterprises in areas such as
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consulting, commissioning, engineering, project appraisal, quality control, know-how transfer,

support, and plant supply.
As on 31 March 2013, the company had 22,036 employees (out of which 2,455 were women
(7.30%) and 23 were employees with disabilities (0.1%)). During the FY 2013-14, the company
incurred ₹12.85 billion on employee benefit expenses.
DR REDDY`S LABORATIES
ISaIndianmultinational pharmaceutical companylocatedin Hyderabad, Telangana, India. The

company was founded by Anji Reddy, who previously worked in the mentor institute Indian
Drugs and Pharmaceuticals Limited. Dr. Reddy's manufactures and markets a wide range of
pharmaceuticals in India and overseas. The company has over 190 medications, 60 active
pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care,
and biotechnology products.
Dr. Reddy's began as a supplier to Indian drug manufacturers, but it soon started exporting to
other less-regulated markets that had the advantage of not having to spend time and money on
a manufacturing plant that would gain approval from a drug licensing body such as the U.S.
Food and Drug Administration (FDA). By the early 1990s, the expanded scale and profitability
from these unregulated markets enabled the company to begin focusing on getting approval
from drug regulators for their formulations and bulk drug manufacturing plants - in more-
developed economies. This allowed their movement into regulated markets such as the US
and Europe. In 2014, Dr. Reddy Laboratories was listed among 1200 of India's most trusted
brands according to the Brand Trust Report 2014, a study conducted by Trust Research
Advisory, a brand analytics company.
By 2007, Dr. Reddy's had seven FDA plants producing active pharmaceutical ingredients in
India and seven FDA-inspected and ISO 9001 (quality) and ISO 14001 (environmental
management) certified plants making patient-ready medications – five of them in India and two
in the UK.
In 2010, the family-controlled Dr Reddy's denied that it was in talks to sell its generics
business in India to US pharmaceutical giant Pfizer, which had been suing the company for
alleged patent infringement after Dr Reddy's announced that it intended to produce a generic
version of atorvastatin, marketed by Pfizer as Lipitor, an anti-cholesterol medication. Reddy's
was already linked to UK pharmaceuticals multinational Glaxo Smithkline.
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SUN PHARMA
Sun Pharmaceutical Industries Limited (d/b/a Sun Pharma) is No. 4th Global and no.
1 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.
HISTORY
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi, Gujarat, with
five products to treat psychiatry ailments. Cardiology products were introduced in 1987
followed by gastroenterology products in 1989. Today, it is the largest chronic prescription
company in India and a market leader in psychiatry, neurology,
cardiology, orthopedics, ophthalmology, gastroenterology and nephrology.
The 2014 acquisition of Ranbaxy made Sun the largest pharma company in India, the largest
Indian pharma company in the US, and the 5th largest specialty generic company globally.
Over 72% of Sun Pharma sales are from markets outside India, primarily in the United States.
The US is the single largest market, accounting for about 50% of the company's turnover; in
all, formulations or finished dosage forms, account for 93% of the turnover. Manufacturing is
across 26 locations, including plants in the US, Canada, Brazil, Mexico and Israel. In the United
States, the company markets a large basket of generics, with a strong pipeline awaiting
approval from the U.S. Food and Drug Administration (FDA).
Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The
founding family continues to hold a majority stake in the company. Today Sun Pharma is the
second largest and the most profitable pharmaceutical company in India, as well as the largest
pharmaceutical company by market capitalisation on the Indian exchanges.
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The Indian pharmaceutical industry has become the third-largest producer in the world in terms
of volumes and is poised to grow into an industry of $36.7 billion from $20 billion in 2015. In
terms of value India still stands at number 14 in the world.
In 2009 Sun Pharma's Caraco Pharmaceutical's plant in Detroit was closed due to unsanitary
conditions resulting in the seizure of $20 million of drugs by the FDA for contamination issues.
In December 2016 the FDA sent Sun a warning letter about nine violations at its manufacturing
plant in Halol.
Sun Pharma requested USFDA to withdraw approval for 28 Abbreviated New Drug
Applications (ANDAs) belonging to its wholly owned subsidiary Ranbaxy Laboratories.
TATA MOTORS
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company)
headquartered in Mumbai, is an Indian multinational automotive manufacturing company and
a member of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses,
sports cars, construction equipment and military vehicles.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Patna nagar,
Lucknow, Sunland, Dharwad and Pune in India, as well as in Argentina, South Africa, Great
Britain and Thailand. It has research and development centres in Pune, Jamshedpur, Lucknow,
and Dharwad, India and in South Korea, Great Britain and Spain. Tata Motors' principal
subsidiaries purchased the English premium car maker Jaguar Land Rover and the South
Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing
joint venture with Marco polo S.A. (Tata Marco polo), a construction-equipment
manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint
venture with Fiat Chrysler which manufactures automotive components and Fiat Chrysler and
Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1988 with the launch of the Tata Mobile
followed by the Tata Sierra in 1991, becoming the first Indian manufacturer to achieve the
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capability of developing a competitive indigenous automobile. In 1998, Tata launched the first
fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the
BSE SENSEX index, the National Stock Exchange of India, and the New York Stock
Exchange. The company is ranked 226th on the Fortune Global 500 list of the world's biggest
corporations as of 2016.
On 17 January 2017, Natarajan Chandra sekaran was appointed chairman of the company Tata
Group. Tata entered the commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz of Germany. After years of dominating the commercial vehicle market in India,
Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a sport
utility vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata Estate,
the Tata Sumo and the Tata Safari..
Tata Indica (first generation): Tata launched the Indica in 1998, the first fully indigenous
Indian passenger car. Although initially criticized by auto Moblie analysts, its excellent fuel
economy, powerful engine, and an aggressive marketing strategy made it one of the best-selling
cars in the history of the Indian automobile industries. A newer version of the car, named Indica
V2, was a major improvement over the previous version and quickly became a mass favourite.
Tata Motors also successfully exported large numbers of the car to South Africa. The success
of the Indica played a key role in the growth of Tata Motors.
MARUTI SUZUKI
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is a subsidiary of the
Japanese automotive manufacturer Suzuki. It was founded and owned by the Government of
India between 1981 until 2003 when it was sold to Suzuki Motor Corporation. As of July 2018,
it had a market share of 53 percent in the Indian passenger car market.
Maruti Suzuki - Founder and History
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Maruti Udyog Limited was founded by the government of India on 24 February 1981, only to
merge with the Japanese automobile company Suzuki in October 1982. The first manufacturing
factory of Maruti was established in Gurugram, Haryana, in the same year.
The company was formed as a government company with Suzuki as a minor partner to make a
people's car for middle class India. Over the years the company's product range has widened
ownership has changed hands and the customer has evolved.
On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki
Motor Corporation Japan. In the year 1983 the company started their productions and launched
Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year they
launched Maruti Gypsy in the market. In the year 1987 the company forayed into the foreign
market by exporting first lot of 500 cars to Hungary.
In the year 1990 the company launched India's first three-box car Sedan. In the year 1992
Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993
they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the
market.In the year 1995 the company commenced their second plant. In the year 1997 they
started Maruti Service Master as a model workshop in India to look after sales services.
In the year 1999 the third plant with new press paint and assembly shops became operational.
In the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki
Motor Corporation increased their stake in the company to 54.2%.
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CHAPTER – 2
LITERATURE REVIEW
P a g e 27 | 70
REVIEW OF LITERATURE
The literature review has been examined on the excellence of the studies. In the area over the
topic of the optimal portfolio construction using various models like Sharpe’s single index
model Markowitz efficiency portfolio and the other theories in log run.
There are various studies construction conducted and studies which was effectively available
at EBSCO website and many other journal and literature reviews on the topic and are projected
as follows,
HUIOU YANG’S “Optimal contracts in continuous time delegated portfolio management

problem” (2003) states that the constructing problem between an individual investor and
portfolio manager in a continuous time principal agent frame work. These contracts are of a
systematic form and suggest that portfolio manager should receive a fixed fee. A fraction of
total asset under management plus a bonus or penalty depending upon the portfolios excess
return relative to a benchmark portfolio.
Neal M. Stoughton, the paper titled “Moral Hazard and the portfolio management problem
(1993)” has explained that his paper investigates, The significance of non-linear contracts on
the incentives for portfolio managers to collect information in addition to the managers must
be motivated to disclose the information truthfully.
Robert Henkel has explained in his paper “The Dynamics of portfolio management contract”
(1994). That the multipored relationship a client and a portfolio managers and The Resulting
problem motivating a managers of unknown ability to acquire valuable information.
HK Franc worth states in his paper called “Portfolio performance and agency” (2010) that the
optimal contracts for a portfolio managers who can exert effort to improve the quality of private
signal about future market prices.
“Management influences on export performance” by Nils Erik Abby (1989) explained that
during the last decade a substantial number of empirical research studies on export performance
have been conducted. This article reviews fifty five of these studies, summarizes the findings
according to a “strategic export model”, synthesizes current knowledge and suggest decisions
for future exports research activities.
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Simon Croon and Petro Romano explained the concept of "Supply Chain Management"
(2000), that there can be little dispute that supply chain management is an area of importance
in the field of management research yet there have been few little reviews on this topic, Bechtel
And Malamud 1996 proceedings of the 1996 NAPM annual academic conference
HARLAND 1996, British Journal of Management 7(Special Issue) 63-80 Cooper 1997. This
paper sets out not to review the supply chain literature per second, but rather to a critical theory
debate through the presentation and use of a framework for the categorization of literature
linked to Supply Chain Management.
Tomas Blomquist in his paper titled "Practices Roles and Responsibilities of Middle Manager
in Program Portfolio Management - (2006) revealed that the practice for program and portfolio
management, together with an associated roles and responsibilities of middle managers were
investigated. The results of the multi method show that the high performing organizations apply
dedicated portfolio management processes and tools, plus use the associated roles of middle
manager address the requirement stemming from the complexity of the organizations
environment and the types of projects executed.
R. Nalini (Associate professor of commerce, Department of M.Com. Commerce And

Management at Maharani College) has conducted an empirical study on - Optimal Portfolio
Using Sharpe's Model" (2014) and her study suggests the investors or help them to make
investment in companies depending on the risk and return averse of adjustment as investors
mainly aim for maximum returns over a period of time.
Information technology portfolio management" by Ram Kumar (2008) states that there is
significant interest in managing its resources as a portfolio assets. The concept of IT portfolio
management is relatively new compared to portfolio management in the context of finance,
new product development, research and development. This article compares it portfolio
management with other types of portfolio management. And develops an improved
understanding of its assets and their characteristics.
K Metaxiotis stated in the paper titled "Multi Objective Evolutionary Algorithms for Portfolio
Management" (2012), that the portfolio management provide a review of the current state of
research on portfolio management with the support of multi objective evolutionary algorithms
(Moeas). Secondly we present a methodological framework for conducting a comprehensive
literature review on the multi-objective evolutionary algorithms for the portfolio management.
P a g e 29 | 70
Constantin Zapoundis in his paper titled "Multi criteria Decision Aid in Financial Decision
Making" in the year (2002), has explained that over the past decades the complexity of financial
decision has increased rapidly. Thus highlighting the importance of developing, implementing
sophisticated and efficient quantitative analysis techniques for supporting and aiding financial
decision making. Multi Criteria Decision Aid (MCDA), an Advanced Field Of Operation
Research, Provides Financial Decision Makers (DNA) and analysts a Wide Range of
Methodologies. Which are well suited to the complexity of financial decision problems.
STOCK MARKET
A stock market is a primarily a virtual exchange of securities (i.e. shares and debentures, which
companies use as a means of raising finance) and derivatives (i.e. virtual instruments such as
contracts that relate to assets and securities and can be traded). It is virtual in the sense that the
market is an intangible concept, rather than a physical place, and as a result of advancing
technologies traders can now get involved with little more than a laptop or mobile phone. The
market trading for their own personal gains through to hedge funds managing billion in assets,
and everything in between.
The Capital markets remained subdued through most of 1995-96 and the bear phase
which began in October 1994, continued through most part of 1995-96. There was a slowdown
in Foreign Institutional Investors (FIIs) inflow and domestic liquidity conditions were
relatively tight, notably, between April to December 1995, the value of primary issues was
marginally higher than the corresponding period last year, despite a downtrend in stock prices
and low turnover in stock exchanges. The process of reforms in the capital markets including
the money markets, was further strengthened Securities and Exchange Board of India (SEDI),
was empowered to regulate all market intermediaries. The National Stock Exchange expanded
rapidly providing an incentive to other stock exchanges to accelerate computerization.
Scope of the India Financial Market
The financial market in India at present is more advanced than many other sectors as it became
organized as early as the 19th century with the securities exchanges in Mumbai, Ahmedabad
and Kolkata. In the early 1960’s the number of securities exchanges in India became eight –
including Mumbai, Ahmedabad, Kolkata. Apart from these three exchanges, there was the
Madras, Kanpur, Delhi, Bangalore and Pune exchanges as well. Today there are 23 regional
securities exchanges in India. The Indian stock markets till date have remained stagnant due to
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rigid economic controls it was only in 1991, after the liberalization process that the Indian
securities witnessed a flurry of IPOs serially. The market saw many new companies spanning
across different industry segments and business began to flourish.
1. INDIAN FINANCIAL INDICES –BSE30 Index, various sector indexes, stock quotes,
Sensex charts, bond prices, foreign exchange, Rupee & Dollar chart Indian Financial market
news
2. STOCK NEWS –Bombay stock exchange, BSE SENSEX 30 index, S&P CNX – Nifty,
company information, issues on market capitalisation, corporate earnings statements
3. FIXED INCOME -Corporate bond prices, corporate debt details, debt raising debt trading
activities, interest rates, money market, government securities, public sector debt, external debt
service.
4. FOREIGN INVESTMENT –Foreign debt database composed by BIS, IMF, OECD, World
Bank, Investments in India and Abroad
5. GLOBAL EQUITY INDEXES –Dow jones Global indexes, Morgan Stanley equity
indexes
6. CURRENCY INDEXES –FX & Gold SC hart plotter, J.P. Morgan currency indexes
7. NATIONAL AND GLOBAL MARKET RELATIONS
TeHamed Sarbazhosseini opined that Today’s corporate world is competitive and in order to
stay ahead it requires organizations to engage in multiple projects. For many organizations,
managing concurrent projects is a key focus and can be complex. To gain optimum benefits
organizations are implementing Project Portfolio Management (PPM). Furthermore selecting
and prioritizing the best projects based on strategy of the organization and managing projects
with scarce resources is paramount. Literature indicates recently PPM continues to be a key
topic of interest and its benefits have been highlighted. The purpose of this paper is to clarify
the meaning of PPM. In order to achieve this we have reviewed PPM literature and analysed
its trends. Analysis of these trends found that PPM has focused attention primarily on tools and
techniques rather than goals and other concepts. The result of these analyses provides an overall
impression of how the field has been aimed. The findings from two case studies presented to
P a g e 31 | 70
better understand the PPM. This paper will be beneficial for research scholars and practitioners
to further understand PPM and identify areas that need additional research.
Tomas Blomquist opined that this article investigates the nature and relationship of project
portfolio control techniques and portfolio management performance, and how this relationship
is moderated by situational idiosyncrasies of internal and external dynamics, industries,
governance types, and geographic location. A worldwide questionnaire with 242 responses was
used, of which 136 high-performing responses were filtered out for quantitative analysis of
best practices. Three portfolio control factors were identified: portfolio selection, portfolio
reporting, and decision-making style. Two measures for portfolio management performance
were identified: achievement of desired portfolio results and achievement of project and
program purpose. The results indicate that different portfolio control mechanisms are
associated with different performance measures. A contingency model was developed,
including moderating effects by contextual variables.
Lira Harari opined that the aim of this study is to investigate the effectiveness of the project
portfolio management in different business organizations.
Project portfolio management is seen as a holistic activity, dependent on the

organization's strategy. This study aims to determine how the project portfolio decisions are
made and how the project portfolio is managed. Also other organizational factors which may
affect the efficiency of project portfolio will be considered. In this study, research method was
case study carried out in business organizations. The study showed interconnection between
company strategy, project portfolio and projects in process and practice. The results indicate
that project portfolio management is, however, facing people challenges in managing project
portfolio.
KHADIJA BENAIJA Opined that in the project portfolio management, the

project selection phase presents the greatest interest. In this article, we focus on this important
phase by proposing a new method of projects selection consisting of several steps. We propose
as a first step, a classification of projects based on the three most important criteria namely the
value maximization, risk minimization and strategic alignment. The second step is building
alternatives portfolio by the portfolio managers taking into account the classification of projects
already completed in the first step. The third and final step enables the identification of the
alternative portfolio to consider the contribution of projects to achieve the organization
objectives as well as interactions between projects.
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INGVAR STEINN Opined that Project Portfolio Management (PPM) is a

relatively new area within project management which deals with, among other things, selecting
and maintaining the right project portfolio within the organization. Many organizations have
shifted the way they work and have become project based organizations (PBOs) during recent
years. That has increased the need for PPM and the benefits that it brings to the organization.
Publications of PPM materials have increased significantly over the last several years and PPM
theories have been established as a vital part of the popular theories of project management.
This thesis focuses on PPM within new product development (NPD) organizations both from
the academic and practical perspective. The academic perspective was provided by a literature
review and a case study research provided the practical perspective. The case study research
analysed how the theory presented in the literature review is applied in two relatively large
NPD organizations. The case study results showed that PPM theory is solid and can easily be
applied to most NPD organizations. But there are some aspects of the theory that seems to have
more importance than others according to the case study research findings. Selection models
and stage-gate project life-cycle models seem to be the most important PPM tools for NPD
organizations while Earned value analysis on the other hand is not as important for these kinds
of organizations. Another important finding from the case study, which contradicts to a certain
degree with the literature, is that the PPM practices should be adapted to the organizational
structure and culture, but not vice versa. Recommendations about how the organizations that
participated in the case study research could improve their PPM practices were provided based
on the literature and the case study findings.
S.ARBELECHEL opined that this paper introduces the use of dynamic

stochastic optimization pension fund management. The design of such products involves
econometric modelling, economic scenario generation, and generic methods of solving
optimization problems and modelling of required risk tolerances. In nearly all the historical
back tests. Using data over roughly the past decade the system described (with transactions
costs taken into account) outperformed the benchmark S&P500.
G.HAMZAEE opined that in this research, an analysis of modern banking in

a competitive environment is provided. Modern banking operations would involve dynamic
strategic planning, in which a clear mission is declared, various strategies are formulated, and
certain objectives and goals are placed in order. The banking industry in various countries has
gone through some evolution. The growing competitive conditions, both inside and outside the
industry, have influenced the banks’ investment in diverse assets and adoption of various forms
P a g e 33 | 70
of liabilities, which will be discussed here. Risk analysis, risk management, and operations
under uncertainties would put a bank’s survival and/or failure under a critical observation. This
research provides a practical manual on bank investment under uncertain conditions, in which
various kinds of risk are involved. While a competitive treatment of customers has always been
of a critical significance to financial stability of banks, appropriate strategic decisions on
investment choices and techniques have distinguished the thriving from the struggling banks.
Among those alternative investment choices, one may clearly find the investment practices
under varying interest-rate conditions of prime significance. The influence of cyber-technology
on banks’ services, policy making, forms of money & credit, including, e-money, electronic
payments, digital cash, smart cards, online banking, etc., has attracted special attention by all
the stakeholders. The authors will address the following three questions: 1. what portfolio
structure in a variable interest-rate environment is proven to be most profitable? 2. What are
the most appropriate products that modern banks must provide to their customers? 3. How is
the task of risk management implemented by some successful banks?
Dr.G.BRINDHA Opined that making an investment on shares, debenture, and bonds are both
profitable and exciting, but it involves a high amount of risk and it requires analytical skills. If
an investor wants to make a profit out of above said securities, he must have considerable
financial acumen as well as capable of facing risk. Now a day, Most of the peoples have
inclination to make an investment on various portfolios such as Shares, Debenture, Bonds. But,
they are unable to manage them prudently. So this article has been prepared with a view to
providing suggestion to manage their portfolio in an effective way by using RSI (Relative
strength Index) and ROC (Rate of Change).
ANTONIO CARLOS Opined that the aim of this study is to explore and validate the
dimensions of IT Portfolio Management (ITPM) in Brazilian companies, based on three
different models. Five case studies were carried out in Brazilian companies that invest more
than nine million reals per year in IT. Eight top IT executives from those organizations who
had knowledge of the dimensions of ITPM were interviewed. Items were modified and new
items included within the dimensions, while examples of equipment or systems applicable to
each of the four dimensions were also identified. Research that helps managers to better
understand and structure their IT investments by using the dimensions of ITPM is important to
assist in the management of such resources
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The portfolio which is once selected has to be continuously reviewed over a period of time and
then revised depending on the objectives of the investor. The care taken in construction of
portfolio should be extended to the review and revision of the portfolio. Fluctuations that occur
in the equity prices cause substantial gain or loss to the investor.
The investor should have competence and skill in the revision of the portfolio. The portfolio
management process needs frequent changes in the composition of stocks and bonds. In
securities, the type of securities to be held should be revised according to the portfolio policy.
An investor purchases stock according to his objectives and return risk framework. The prices
of stock that he purchases fluctuate, each stock having its own cycle of fluctuations. These
price fluctuations may be related to economic activity in a country or due to other changed
circumstances in the market.
If an investor is able to forecast these changes by developing a frame work for the future
through careful analysis of the behaviour and movement of stock prices is in a position to make
higher profit than if he was to supply buy securities and hold them through the process of
diversification. Mechanical methods are adopted to earn better profit through proper timing.
The investor uses formula plans to help him in making decisions for the future by exploiting
the fluctuations in prices. The Indian capital market has changed dramatically over the last few
years, especially since 1990. Changes have also been taking place in government regulations
and technology. The expectations of the investors are also changing. The only inherent feature
of the capital market, which has not changed is the 'risk' involved in investing in corporate
securities. Managing the risk is emerging as an important function of both large scale and small-
scale investors.
Risk management of investing in corporate securities is under active and extensive discussion
among academicians and capital market operators. Surveys and research analyses have been
conducted by institutions and academicians on risk management. The mutual fund companies
in India have conducted specific studies on the 'risk element' of investing in corporate
securities.
Grewal S.S and Navjot Grewell (1984) revealed some basic investment rules and rules for
selling shares. They warned the investors not to buy unlisted shares, as Stock Exchanges do
not permit trading in unlisted shares. Another rule that they specify is not to buy inactive shares,
ie, shares in which transactions take place rarely. The main reason why shares are inactive is
because there are no buyers for them. They are mostly shares of companies, which are not
P a g e 35 | 70
doing well. A third rule according to them is not to buy shares in closely-held companies
because these shares tend to be less active than those of widely held ones since they have a
fewer number of shareholders. They caution not to hold the shares for a long period, expecting
a high price, but to sell whenever one earns a reasonable reward.
Jack Clark Francis2 (1986) revealed the importance of the rate of return in investments and
reviewed the possibility of default and bankruptcy risk. He opined that in an uncertain world,
investors cannot predict exactly what rate of return an investment will yield. However he
suggested that the investors can formulate a probability distribution of the possible rates of
return.
He also opined that an investor who purchases corporate securities must face the possibility of
default and bankruptcy by the issuer. Financial analysts can foresee bankruptcy. He disclosed
some
Easily observable warnings of a firm's failure, which could be noticed by the investors to avoid
such a risk.
Preethi Singh3 (1986) disclosed the basic rules for selecting the company to invest in. She
opined that understanding and measuring return md risk is fundamental to the investment
process. According to her, most investors are 'risk averse'. To have a higher return the investor
has to face greater risks
She concludes that risk is fundamental to the process of investment. Every investor should have
an understanding of the various pitfalls of investments. The investor should carefully analyse
the financial statements with special reference to solvency, profitability, EPS, and efficiency
of the company.
David.L.Scott and William Edward4 (1990) reviewed the important risks of owning common
stocks and the ways to minimise these risks. They commented that the severity of financial risk
depends on how heavily a business relies on debt. Financial risk is relatively easy to minimise
if an investor sticks to the common stocks of companies that employ small amounts of debt.
They suggested that a relatively easy way to ensure some degree of liquidity is to restrict
investment in stocks having a history of adequate trading volume. Investors concerned about
business risk can reduce it by selecting common stocks of firms that are diversified in several
unrelated industries.
P a g e 36 | 70
Lewis Man dells (1992) reviewed the nature of market risk, which according to him is very
much 'global'. He revealed that certain risks that are so global that they affect the entire
investment market.
Even the stocks and bonds of the well-managed companies face market risk. He concluded that
market risk is influenced by factors that cannot be predicted accurately like economic
conditions, political events, mass psychological factors, etc. Market risk is the systemic risk
that affects. All securities simultaneously and it cannot be reduced through diversification
Nabhi Kumar Jain6 (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy
Shares by diversifying in a number of growth companies operating in a different but equally

fast growing sector of the economy.
He suggested selling the shares the moment company has or almost reached the peak of its
growth. Also, sell the shares the moment you realise you have made a mistake in the initial
selection of the shares. The only option to decide when to buy and sell high priced shares is to
identify the individual merit or demerit of each of the shares in the portfolio and arrive at a
decision.
Carter Randal7 (1992) offered to investors the underlying principles of winning on the stock
market. He emphasised on long- term vision and a plan to reach the goals. He advised the
investors that to be successful, they should never be pessimists. He revealed that - though there
has been a major economic crisis almost every year, it remains true that patient investors have
consistently made money in the equities market. He concluded that investing in the stock
market should be an un-emotional endeavour and suggested that investors should own a stock
if they believe it would perform well.
L.C.Gupta8 (1992) revealed the findings of his study that there is existence of wild speculation
in the Indian stock market. The over speculative character of the Indian stock market is
reflected in
Extremely high concentration of the market activity in a handful of shares to the neglect of the
remaining shares and absolutely high trading velocities of the speculative counter
P a g e 37 | 70
He opined that, short- term speculation, if excessive, could lead to "artificial price". An
artificial price is one which is not justified by prospective earnings, dividends, financial
strength and assets or
Which is brought about by speculators through rumours, manipulations, etc. He concluded that
such artificial prices are bound to crash sometime or other as history has repeated and proved.
Yasaswy N.J.9 (1993) disclosed how 'turnaround stocks' offer big profits to bold investors and
also the risks involved in investing in such stocks. Turnaround stocks are stocks with
extraordinary potential and are relatively under priced at a given point of time.
He also revealed that when the economy is in recession and the fundamentals are weak, the
stock market, being a barometer of the economy, also tends to be depressed. A depressed stock
market is an ideal hunting ground for 'bargain hunters', who are aggressive investors. Sooner
or later recovery takes place which may take a very long time. He concluded that the investors'
watch work is 'caution' as he may lose if the turnaround strategy does not work out as
anticipated.
Sunil Damodar'o (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for short-
term risk control. He opined that derivatives have become an indispensable tool for finance
managers whose prime objective is to manage or reduce the risk inherent in their portfolios. He
disclosed that the over-riding feature of 'financial futures' in risk management is that these
instruments tend to be most valuable when risk control is needed for a short- term, ie, for a year
or less. They tend to be cheapest and easily available for protecting against or benefiting from
short term price. Their low execution costs also make them very suitable for frequent and short
term trading to manage risk, more effectively.
Yasaswy J.N." (1993) evaluated the quantum of risks involved in different types of stocks.
Defensive stocks are low risk stocks and hence the returns are relatively low but steady.
Cyclical stocks involve higher risks and hence the rewards are higher when compared to the
growth stocks. Growth stocks belong to the medium risk category and they offer medium
returns which are much better. Than defensive stocks, but less than the cyclical stocks. The
market price of growth stocks does fluctuate, sometimes even violently during short periods of
boom and bust. He emphasised the financial and organisational strength of growth stocks,
which recover soon, though they may hit bad patches once in a way.
P a g e 38 | 70
Donald E Fischer and Ronald J. Jordan12 (1994) analysed the relation between risk, investor
preferences and investor behaviour. The risk return measures on portfolios are the main
determinants of an investor's attitude towards them. Most investors seek more return for
additional risk assumed. The conservative investor requires large increase in return for
assuming small increases in risk. The more aggressive investor will accept smaller increases in
return for large increases in risk. They concluded that the psychology of the stock market is
based on how investors form judgements about uncertain future events and how they react to
these judgements.
R.Venkataramani.l"l994) disclosed the uses and dangers of derivatives. The derivative

products can lead us to a dangerous position if its full implications are not clearly understood.
Being off- balance sheet in nature, more and more derivative products are traded than the cash
market products and they suffer heavily due to their sensitive nature.
He brought to the notice of the investors the 'Over the counter product' (OTC) which are traded
across the counters of a bank. OTC products (e.g. Options and futures) are tailor made for the
particular need of a customer and serve as a perfect hedge. He emphasised the use of futures as
an instrument of hedge, for it is of low cost.
K.Sivakumar. '"1994) disclosed new parameters that will help investors identify the best
company to invest in. He opined that Economic Value Added (EVA) is more powerful than
other conventional tools for investment decision making like EPS and price earnings ratio.
EVA looks at how capital raised by the company from all sources has been put to use. Higher
the EVA, higher the returns to the shareholder. A company with a higher EVA is likely to show
a higher increase in the market price of its shares.
To be effective in comparing companies, he suggested that EVA per share (EVAPS) must be
calculated. It indicates the super profit per share that is available to the investor. The higher
EVAPS, the higher is the likely appreciation in the value in future. He also revealed a startling
result of EVA calculation of companies in which 200 companies show a negative value
addition that includes some blue chip companies in the Indian Stock Market.
Pattabhi Ram.V.15 (1995) emphasised the need for doing fundamental analysis ‘and doing
Equity Research (ER) before selecting shares for investment. He opined that the investor
should look for value with a margin
P a g e 39 | 70
of safety in relation to price. The margin of safety is the gap between price and value. He
revealed that the Indian stock market is an inefficient market because of the absence of good
communication network, rampant price rigging and the absence of free and instantaneous flow
of information, professional broking and so on. He concluded that in such inefficient market,
equity research will produce better results as there will be frequent mismatch between price
and value that provides opportunities to the long-term value oriented investor. He added that
in the Indian stock market investment returns would improve only through quality equity
research.
Melvyn Reo 52(2001) reviewed the various risks to which the Indian corporates are exposed
to and also the corporate risk management policies. He opined that the corporates need to focus
on their primary business risks and hedge risks arising from commodity price movements. An
appropriate level of risk for a corporate is dependent on how much business and financial risk
it is exposed to. A corporate with volatile cash flows and high operational risk may find it
appropriate to take on less market risks. A corporate which is exposed to a relatively lower
business risk may feel more comfortable in taking on more unhedged financial risk. Ultimately,
the corporate may decide to fix the total risk appropriate to it as some percentage of its capital
base or the expected earnings.
He opined that the corporates, despite their unlimited life span have limited tolerance to price
volatility. The commodity price exposure should be fully hedged because corporates face
enough business risk and cannot afford to add further risks. Since all corporates are exposed to
commodity price risk, they should maintain a Board approved policy and procedures that
outline its risk management strategy. He concluded the article by stating that the underlying
objective in any risk management policy should meet the aspirations of the equity holders.
The Economic Times Investors' year Book5 ~ (2000-01) commented on the "Paperless
World and described what makes dematerialization the preferred choice and how it reduces
risk. The dematerialized trading was introduced in India in 1996 to reduce pains and risks in
settlement through the loss of share certificates in transit, bad deliveries, delays in transfer
and forged/fake/stolen certificates. It helps in doing away with the risk of loss in transit by
directly crediting the account with bonus shares and rights. There is no risk of bad delivery
because the ownership status is clearly captured in the Depository's computers.
P a g e 40 | 70
CHAPTER – 3
RESEARCH METHODOLGY
P a g e 41 | 70
OBJECTIVES OF THE STUDY

➢ To study the performance of selected equity scrips.
➢ To study the risk and return of selected equity scrips.
➢ To suggest that the stock with lower beta and higher returns are to be chosen to make
investment.
➢ To find out best portfolio.
➢ To understand ,analyse and select best portfolio.
➢ To understand the effect of diversification of investment.
NEED FOR THE STUDY

➢ Research is vehicle tool that help the management in making better investing decisions.
➢ Research provides information such as present market conditions and investors
demands. From the study we can get an idea about the existing situation.
➢ Research helps in the increasing level of investor's satisfaction and in the development
of appropriate investment schemes. There is a need to find out what investors look for,
what are their priorities regarding investment feasibilities, schemes and other terms.
LIMITATION OF THE STUDY

➢ The present study was limited to 10 selected scrips.
➢ The study was conducted for the period of 2 months.
➢ The study confined mostly secondary data.
➢ Sharpe single index ratio is used here to calculate return and risk of portfolio.
➢ While constructing the portfolios the stocks are given equal weightage, return and risk
will change if weightage is different.
P a g e 42 | 70
SOURCES OF DATA
The data required for the present study will be collected from the various secondary sources
like Stock Exchange websites like nseindia.com, EBSCO, joumals.com etc., Research papers
and text books and data has been collected for 5 years i.e., from January 2016 to March 2021.
The data collection is prime factor in any of the project, while finding true and fair data about
particular title the data or the information cannot collected easily. The data finding is complex
as well as important work for completion of the project with high accuracy. In my project I
have held analytical research, the research is conducted basically on organization. The data for
the study in various secondary sources like research papers, text books and NSE, EBSCO.
P a g e 43 | 70
CHAPTER – 4
DATA ANALYSIS AND
INTERPRETATION
P a g e 44 | 70
DATA ANALYSIS
A person “B” has Rs.1,00,000 and invested in the following way
INDUSTRIES PERCENTAGE STOCKS PERCENTAGE

(%) (%)
Banking 20% Kotak Mahindra
HDFC 11.419%
7.560%
IT 20% TCS 18.660%

Wipro 6.920%
FMGC 10% Britannia 6.9782%
Pharma 30% Cipla 5.546%

DR.Reddy’s 17.798%
Sun pharma 2.409%
Automobile 20% Tata Motors 1.919%
Maruti Suzuki 14.300%
P a g e 45 | 70
P a g e 46 | 70
Table 1 CALCULATION OF RETURNS FOR THE YEAR 2016
STOCKS OPENING PRICE CLOSING PRICE RETURNS

(2016) (2017)
Kotak Mahindra 683.0 775.4 13.46

HDFC 524.23 642 22.51
TCS 1195.43 1166.3 -2.42
Wipro 211.13 174.68 -17.53
Britannia 1335.0 1572.0 17.75
Cipla 585.0 582.0 -0.51
DR.Reddy’s 3105.0 3017.0 -2.83
Sun pharma 872.1 644.0 -26.14
Tata Motors 336.3 532.9 58.33
Maruti Suzuki 4095.85 5894.0 43.93
ΣR(P)=(13.46×0.11)+(22.51×0.07)+(-2.42×0.18)+(-17.53×0.06)+(17.75×0.06)+(-
0.51×0.05)+(-2.83×0.17)+(-26.14×0.02)+(58.33×0.01)+(43.93+0.14)
=8.338
P a g e 47 | 70
P a g e 48 | 70

(2017) (2018)
Kotak Mahindra 775.4 1115 30.49

HDFC 642 999.0 55.60
TCS 1166.3 1599 37.13
Wipro 174.68 233.63 33.90
Britannia 1572.0 2352.6 49.61
Cipla 582.0 615.18 5.67
DR.Reddy’s 3017.0 2357.0 -21.87
Sun pharma 644.0 587.0 -8.85
Tata Motors 532.9 399.9 -25
Maruti Suzuki 5894.0 9630.2 63.38
P a g e 49 | 70
ΣR(P)=(30.49×0.11)+(55.60×0.07)+(37.13×0.18)+(33.90×0.06)+(49.61×0.06)+(5.67×0.05)+
(-21.87×0.17)+(-8.85×0.02)+(-25×0.01)+(63.38+0.14)
=23.9517
P a g e 50 | 70

(2018) (2019)
Kotak Mahindra 1115.0 1251.7 12.19

HDFC 999.0 1028.63 2.90
TCS 1599.48 1982.0 23.95
Wipro 233.63 269.25 15.45
Britannia 2352.6 3180.4 35.20
Cipla 615.18 505.0 -17.88
DR.Reddy’s 2357.0 2666.8 13.10
Sun pharma 587.0 422.3 -28.1
Tata Motors 399.9 173.3 -56.64
Maruti Suzuki 9630.2 6526.5 -32.23
ΣR(P)=(12.19×0.11)+(2.90×0.07)+(23.95×0.18)+(15.45×0.06)+(35.20×0.06)+(-
17.88×0.05)+(13.10×0.17)+(-28.1×0.02)+(-56.64×0.01)+(-32.23+0.14)
=4.5723
P a g e 51 | 70
P a g e 52 | 70

(2019) (2020)
Kotak Mahindra 1251.7 1640.8 31.09

HDFC 1028.63 1235.85 20.13
TCS 1982.0 2137.4 8.67
Wipro 269.25 246.45 -8.55
Britannia 3180.4 3214.9 1.06
Cipla 505.0 461.0 -8.71
DR.Reddy’s 2666.8 3148.3 18.0
Sun pharma 422.3 450.0 6.63
Tata Motors 173.3 188.0 8.67
Maruti Suzuki 6526.5 7010.0 7.41
P a g e 53 | 70
ΣR(P)=(31.09×0.11)+(20.13×0.07)+(8.67×0.18)+(-8.55×0.06)+(1.06×0.06)+(-
8.71×0.05)+(18.0×0.17)+
(6.63×0.02)+(8.67 ×0.01)+(7.41+0.14)
=9.5514
P a g e 54 | 70

(2020) (2021)
Kotak Mahindra 1640.8 1712.0 4.39

HDFC Bank 1235.85 1390.5 12.55
TCS 2137.4 3111.2 45.57
Wipro 246.45 417.0 69.51
Britannia 3214.9 3501.9 8.92
Cipla 461.0 825.7 78.9
DR.Reddy’s 3148.3 4602.0 46.1
Sun pharma 450.0 586.0 30.22
Tata Motors 188.0 262.1 45.57
Maruti Suzuki 7010.0 7206.0 2.79
P a g e 55 | 70
ΣR(P)=(4.39×0.11)+(12.55×0.07)+(45.57×0.18)+(69.51×0.06)+(8.92×0.06)+(78.9×0.05)+(4
6.1×0.17)+(30.22×0.02)+(45.57 ×0.01)+(2.79+0.14)
=27.4404
P a g e 56 | 70
CALCULATION OF STANDARD DEVIATION
STOCKS TOTAL RETURNS AVERAGE DEVIATION

(2016-2021) RETURNS ̅)
(𝑹 − 𝑹
Kotak Mahindra 91.62 18.32 73.3

HDFC Bank 113.69 22.73 90.96
TCS 112.9 22.58 90.32
Wipro 92.78 18.55 74.23
Britannia 112.54 22.50 90.04
Cipla 57.47 11.494 45.98
DR.Reddy’s 52.5 10.5 42
Sun pharma -26.24 -5.24 -21
Tata Motors 30.93 6.18 24.75
Maruti Suzuki 85.28 17.05 68.23
= (73.3)2 +(90.96)2 +(90.32)2 +(74.23)2 +(90.04)2 +(45.98)2 +
(42)2 +(-21)2 +(24.75)2 +(68.23)2 /10
=0.575 < 1
P a g e 57 | 70
CALCULATION OF BETA
NIFTY SHARE
RETURNS RETURNS X-X’ Y-Y’ (X-X’)(Y-Y’) X-𝑿𝟐
(X) (Y)
14.13 8.33 1.124 -6.438 -7.236 1.263
28.93 23.95 15.924 9.182 146.214 253.57
-4.29 4.57 -17.296 -10.198 17.384
12.98 9.55 -0.026 -5.218 0.135 0.000
13.28 27.44 0.274 12.672 3.472 0.075
X’=13.006 Y’=14.768 =63.793 =110.811
BETA= 63.792/110.811
=0.575<1
P a g e 58 | 70
A person “B” invested is Rs.1,00,000 by changing the percentage of amount

in each stock to increase the return.
INDUSTRIES PERCENTAGE STOCKS PERCENTAGE

(%) (%)
Banking 20% Kotak Mahindra
HDFC 5.709%
3.024%
IT 20% TCS 24.880%
Wipro 9.688%
FMGC 10% Britannia 3.489%

Pharma 30% Cipla 7.923%
DR.Reddy’s 31.147%
Sun pharma 3.613%
Automobile 20% Tata Motors 2.559%
Maruti Suzuki 7.150%
P a g e 59 | 70
Calculation of returns (from 2016 -2021)
ΣR(P)=(13.46×0.05)+(22.51×0.03)+(-2.42×0.24)+(-17.53×0.09)+(17.75×0.03)+(-
0.51×0.07)+(-2.83×0.31)+(-26.14×0.03)+(58.33×0.02)+(43.93+0.07)
=2.7662
ΣR(P)=(30.49×0.0.05)+(55.60×0.03)+(37.13×0.24)+(33.90×0.09)+(49.61×0.03)+(5.67×0.07
)+(21.87×0.31)+(8.85×0.03)+(58.33×0.02)+(43.93+0.07)
=13.9313
ΣR(P)=(12.19×0.0.05)+(2.90×0.03)+(23.95×0.24)+(15.45×0.09)+(35.20×0.03)+(-
17.88×0.07)+(13.10×0.31)+(-28.1×0.03)+(-56.64×0.02)+(-32.23 +0.07)
=7.1165
ΣR(P)=(31.09×0.0.05)+(20.13×0.03)+(8.67×0.24)+(-8.55×0.09)+(1.06×0.03)+(-
8.71×0.07)+(18.0×0.31)+
(6.63×0.03)+(8.67×0.02)+(7.41+0.07)
=6.3226
P a g e 60 | 70
ΣR(P)=(4.39×0.0.05)+(12.55×0.03)+(45.57×0.24)+(69.51×0.09)+(8.92×0.03)+(78.9×0.07)+(
46.1×0.31)+(30.22×0.03)+(45.57×0.02)+(2.79+0.07)
=39.7594
CALCULATION OF BETA
NIFTY SHARE
RETURNS RETURNS X-X’ Y-Y’ (X-X’)(Y-Y’) X-𝑿𝟐
(X) (Y)
14.13 2.76 1.124 -11.214 -12.604 1.263
28.93 13.93 15.924 -0.044 -0.700 253.57
-4.29 7.11 -17.296 -6.864 118.719 299.15
12.98 6.32 -0.026 -7.654 0.199 0.000
13.28 39.75 0.274 25.776 7.062 0.075
X’=13.006 Y’=13.974 =22.535 =110.811
BETA= 22.535/110.811
=0.203<1
Interpretation: Hence change in percentage of amounts invested in different stocks resulted

in increase in return.
P a g e 61 | 70
CHAPTER – 5
FINDINGS
SUGGESTIONS AND
CONCLUSION
P a g e 62 | 70
FINDINGS
➢ It is definitely possible to construct an optimal portfolio using NIFTY 50 companies
enlisted on NSE
➢ Companies move negatively with the market return as their average return is negative
response.
➢ The excess beta is also determined with the ranks associated with the changes or the
residual variance which affects the portfolio
➢ The companies with better portfolio weight are also determined through the cut-off rate.
➢ The performance of the stock is shown through the excess return to beta ratio and helps
to exterminate those companies which are not efficient.
➢ For the complete 5 years of data determined the risk associated with its stock is not the
same as it differs day to day, time to time, month to month etc...
P a g e 63 | 70
SUGGESTIONS
➢ The volatility or the fluctuations in the stock keep changing in the stocks along with
their beta and variance. So eventually the investors have to observe constantly about
the market.
➢ Stocks with relatively lower beta and higher returns have to be chosen to make
investment.
➢ The optimal portfolio is a subject to change, because the proportion of investment
changes in each security from time to time.
➢ Regular analysis or changes in the market has to be done as it would benefit and also
minimize the consequences of incurring losses.
➢ Continuous evaluation of stock is necessary and the portfolio has to be updated
periodically to overcome the changes.
➢ The awareness of the utility of securities screening the optimal portfolio construction
must be made use of the investor.
➢ It is highly recommended or assured to invest in these 10 stocks to get a good return
at the lowest possible risk and this can be repeated or has to be maintained as an
ongoing exercise. The changes in the market can keep an investor or decision to he
made against the securities based on their portfolio weights.
➢ Thus the study leads to understand the concept of optimal portfolio management
model through analysing the performance of the portfolio of the organizations by
using Sharpe’s single index model and it helps to investigate the unpredictability of
different organizations stocks regarding examination with the business sector.
➢ The investors who takes less risk with minimum returns they can go to either
portfolio1 or portfolio 2.
P a g e 64 | 70
CONCLUSION
The study can be concluded for testing the utility of Sharpe's single index model which is
conducted and as per the objective; here the portfolio is constructed with 35 selected companies
out of 50 companies enlisted on NSE and it also reports the investor to decide whether he has
to buy or not. This method used in the study of optimal portfolio is very effective and feasible
as revision of the optimal portfolio has to be done continuously as an ongoing exercise to
determine the very outcome of the market and the changes in the portfolio can be determined.
The use if cut-off point describes that those securities above the cut-off point included also
provides a rational outcome in returns which can be invested. The excess beta ratio also plays
a major role in eliminating those companies which is not efficient for the study.
Thus the construction of optimal portfolio for the long run is suited and is found very useful in
determining the causes and changes of various stocks enlisted along rich the changes or
volatility in the market and it also throws light on the factors that are too be considered while
investing in the capital market..
Thus the study concluded that both portfolio 1 & 2 has low risk and high returns. Both the
portfolio’s are best to invest.
P a g e 65 | 70
BIBILOGRAPHY
P a g e 66 | 70
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P a g e 68 | 70
WEBSITES
■ Historical prices of stock (2016-2021) viewed on 01/03/2021 in the Money control
Website- www.moneycontrol.com/historicalpricesofstocks/nifty50
■ Portfolio Management and Stock Market information (2016-2021) viewed on 15/03/2021

in the google finance- Website www.googlefinance.com
■ Monthly Stock prices of different companies (2016-2021) viewed on 20\03\2021 at

www.yahoofinance.corn/stockprices/monthly
■ Beta and financial services (2021) accessed on 28\03\2021 at www.ebsco.co.in .
Websites : www.nseindia.com
➢ www.bseindia.com
➢ www.moneycontrol.com
➢ en.wikipedia.org/wiki/portfolio management
➢ www.indianinfoline.com/markets/news
➢ www.globalresearch.co.in
➢ www.sebi.gov.in
➢ www.economicstimes.com
➢ www.rbi.com
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Portfolio Management Project Report

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Portfolio Management Project Report

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A STUDY ON PORTFOLIO AND INVESTMENT DECISIONS WITH REFERENCE

TO BANKING INDUSTRY IN INDIA

BATCHELOR OF BUSINESS ADMINISTRATION

Under the Guidance of

DEPARTMENT OF MANAGEMENT STUDIES

Project Guide Head

I hereby declare that the project report entitled “A STUDY

I also hereby declare that this project has not been

Date: MANGAPURAM SUVARNIKA

TO WHOMSsOEVER IT MAY CONCERN

This is certify that Ms. Mangapuram Survanika, (0519036084) student of

Emeralds Degree College, Tirupati, has

We wish her all the best in all her future endeavors.

Aditya Trading Solutions Private Ltd.

Aditya Trading Solutions Private Ltd.

CLASSIFICATION OF FINANCIAL MARKETS :

Over-the-Counter Market: An OTC is characterised by a decentralised organisation, having

TYPES OF FINANCIAL MARKETS

SECURITIES AND EXCHANGE BOARD OF INDIA

. To monitor the activities of the stock exchange.

· To safeguard the rights of the investors

· To curb fraudulent practices by maintaining a balance between statutory regulation

One Chairman of the board – appointed by the Central Government of India

Two Board members – hailing from the Union Ministry of Finance

Five Board members – elected by the Central Government of India

SEBI ACT AND GUIDELINES:

The SEBI Act 1992 covers the following areas:

• Composition and actions of the SEBI Board members

• Employee Stock Option schemes

MAJOR STOCK EXCHANGES IN INDIA

NATIONAL STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

Approximately 5000 companies are listed in BSE

1. Sensex (Based on 30 companies)

2. BSE-100 (Based on 100 companies)

3. BSE-200 (Based on 200 companies)

4. Dollex (Based on the dollar value of BSE-200 companies)

5. Bankex (Based on shares of banks only)

OBJECTIVES OF PORTFOLIO MANAGEMENT

Some of the core objectives of portfolio management are as follows –

TYPES OF PORTFOLIO MANAGEMENT

Active portfolio management

Passive portfolio management

Discretionary portfolio management

Under this management, the managers provide advice on investment choices. It is up to

ADITYA TRADING SOLUTIONS

We are a full spectrum investment management house specializing in online commodity

SERVICES PROVIDED BY THE COMPANY

Provide wealth management by understanding customers’ needs and develop customized

Company assists the emerging companies in equity syndication by identifying companies,

They provide a bouquet of financial research services to investment banks, independent

• Data Centre Solution

Networking & Communication

• Networking, Management and Automation.

Security & Automation

• Surveillance & Access control. Networking & Communication

Computing & Printing Solutions

• Managed Print Service

IT Management & Outsourcing

• Annual Management Contract

KOTAK MAHINDRA BANK

Kotak Mahindra Bank Limited is an Indian private sector bank headquartered in

MERGES AND ACQUISITIONS