CHAPTER I INTRODUCTION AND BACKGROUND

Page 1

1. Introduction Volatility in investing is a stock's ability to change. Stocks with high volatility are those that can easily change in price (greatly and quickly), meaning that they are easily affected. Securities with lower volatility are more resistant to change, and they tend to have a stable course. With great potential for return, volatile stock is also accompanied by much risk. Generally, securities that trade with volatility often fluctuate greatly over short periods of time, as it takes very little to affect the prices of these shares. When the price jumps up and down, short-term trading opportunities that allow investors to buy during dips and sell when price bounces up arise. 1.1 Factors responsible for price fluctuations In a securities market, prices or return show fluctuation for a variety of reasons: changes in fundamental factors of firms, like, investors endowment, tastes or alternatively the attitude towards risk, correct or incorrect anticipations or expectation of investor and other participants, differences in information and mode of evaluation, transient imbalance between demand and supply of securities, and the nature and number of stabilizing forces, among others, cause prices to fluctuate either from one point of equilibrium to another or above and below an equilibrium point. The changes in fundamental factors cause price or returns to shift from one point of equilibrium to another. For instance, information regarding changes in the economy, changes in policies, including industrial policy, as also the political situation, and the social situation, influence the overall price behavior of a market. Apart from fundamental factors, the transitory imbalances between demand and supply for securities may also cause price fluctuations. For instance, in the absence of stabilizing forces, excess supply (demand) of securities in the short-run cause price to fall (rise). In the presence of stabilizing forces, such as traditional speculators and value based investors, the extent of fluctuations tend to be small, as these stabilizing forces act as buyers (sellers), when there is excess of supply (demand), thus, arresting the magnitude of a fall (rise) in the price. However, the stabilizing forces may not completely mitigate the price change; as such act may not bestow any benefit on them. These forces require a minimum extent of price change in order to undertake the act of stabilizing of prices, which would give then scope to earn a responsible reward. The expectation and foresight of investors as well as speculators determine the magnitude of price fluctuations to a large extent. If market participants anticipate changes in either fundamental factors or technical factors correctly, and if the change or anticipated change comes about gradually, the price moves in a smooth fashion from one point of equilibrium to another. On the contrary, when the anticipations prove to be either too optimistic or too pessimistic, or the changes in these factors or anticipations about
Page 2

them, undergo a sudden changes, the prices move erratically, rather than move in a smooth fashion resulting in greater price fluctuations. The numbers of speculations in relation to other trader also influence the extent of fluctuations. The traditional role of a speculator is act as a buyer when there is excess supply and as a seller when there is excess demand. Changes in fundamental and other factor as well as correct or incorrect anticipations also determine the short-term and the long-term price changes. If the changes takes place gradually and anticipation prove to be correct, the short-term fluctuations tend to be similar in magnitude as that of average long-term fluctuations, as in this case, the short-term fluctuations or price changes tend to be one direction, which add up to determine long-term fluctuations. On the contrary, if the anticipations are not correct, irrespective of mode of arrival of information- whether gradual or not gradual the average long-term fluctuations tend to be smaller than the short-term fluctuations. It is clear that the fluctuation of price or price volatility is influenced by the arrival of information- gradual or otherwise- and the correct or incorrect anticipation of market participants. Further, the role played by a speculator either corrects the situation by minimizing the extent of fluctuations, or further accentuates fluctuations and thereby destabilizes prices. 1.2 Statistical tools used for calculation of volatility Beta The market risk of a security reflects its sensitivity to market movement. Such sensitivity of a security is called beta. Beta measure the non diversifiable risk. Beta show how the price of a security responds to market forces. In effect, the more responsive the price of a security is to change in the market, the higher will be its Beta. Beta is calculated by relating the return on security with the return for the market. It can be positive or negative. Beta for each stock calculated using daily opening and closing share price each company and corresponding daily Bombay Stock Exchange Sensex. First, rate of returns of companies and Bombay Stock Exchange Sensex are calculated. The calculation as follows: Rate of Return= share price in the closing-share price at the opening/ share price in the opening

>1: Beta of more than one indicates that the security has more unavoidable risk or is more volatile than market as a whole =1: Beta of one indicate that volatility of return on the security is same as the market or index <1: Beta less than 1 indicates that the security has less systematic risk or is less volatile than market

Page 3

The slope function in MS-EXCEL is a convenient way to calculate the Beta Standard Deviation This is the most commonly used measure of risk in finance. Its square also is widely used to find out the risk associated with a security. Coefficient of correlation Coefficient of correlation is a statistical technique, which measure the degree or extent to which two or more variables fluctuate with reference to one another. Correlation analysis helps in determining the degree of relationship between two or variables.

Page 4

CHAPTER II RESEARCH DESIGN

Page 5

2. Title of the study

Analytical Study on the Volatility of Securities Traded on BSE Sensex. 2.1 Statement of the problem The Indians securities market has always witnessed fluctuations, especially Bombay Stock Exchange (BSE) Sensex have more volatility than the securities traded on the NSE. The study attempts identify the volatility of securities listed in Bombay Stock Exchange with special reference to 30 Sensex stocks. Moreover this study helps the potential investors make better investment decision based on calculated beta of 30 shares listed in Bombay Stock Exchange (BSE) Sensex 2.2 Need and importance of study The stock market in india existed for a well over a century. Now its importance in the mobilization, allocation and efficient use of scare investment resources has not been recognized until the last decade. During the last decade both secondary and primary markets have witnessed phenomenal qualitative and quantitative developments. One of the important characteristics of well functioning stock market is the stability of prices of securities traded on it, which is price volatility. Volatility of securities price has important implications for firms investment and financial decisions, valuations and investors sentiments. Price volatility of securities has consequence for firms decisions on how much capital to issue, type of instrument to be used when to use. Further high price volatility provides opportunities for expropriations between various market players. There for the study of volatility of security is very important contextual as well. Here analytical study of volatility of securities traded on Bombay Stock Exchange is the topic of this dissertation. 2.3 Objective of the study

To study the volatility of securities listed in Bombay Stock Exchange (BSE). To find out the various factors which are responsible for volatility. To suggest better investment decision based on calculated beta of thirty companies.

2.4 Methodology It covers the type of research used in the dissertation, sample size chosen, sample description, data collection. Each will be described separately under the following headings.
Page 6

2.5 Population Size For the study 30 companies have been selected. All the companies are the major players in the economy and are part of sensex. 2.6 Sample technique The current study requires no sampling techniques. All the 30 companies in the Bombay Stock Exchange Sensex which appear from March to May are selected. 2.7 Sample description Table 1. LIST OF 30 COMPANIES IN SENSEX
CODE 500103 500510 500010 500180 532174 500112 500696 500875 500087 532868 532532 500209 532540 507685 500440 532286 500900 500470 500312 500325 532555 500390 NAME Bharat Heavy Electricals Ltd. Larsen & Toubro Limited HDFC HDFC Bank Ltd. ICICI Bank Ltd. State Bank of India Hindustan Unilever Ltd. ITC Ltd. Cipla Ltd. DLF Ltd. Jaiprakash Associates Ltd. Infosys Technologies Ltd. Tata Consultancy Services Limited Wipro Ltd. Hindalco Industries Ltd. Jindal Steel & Power Ltd. Sterlite Industries (India) Ltd. Tata Steel Ltd. ONGC Ltd. Reliance Industries Ltd. NTPC Ltd. Reliance Infrastructure Ltd. SECTOR Capital Goods Capital Goods Finance Finance Finance Finance FMCG FMCG Healthcare Housing Related Housing Related Information Technology Information Technology Information Technology Metal,Metal Products & Mining Metal,Metal Products & Mining Metal,Metal Products & Mining Metal,Metal Products & Mining Oil & Gas Oil & Gas Power Power Page 7

500400 532454 532712 532977 500182 500520 532500 500570

Tata Power Company Ltd. Bharti Airtel Ltd. Reliance Communications Limited Bajaj Auto Limited Hero Honda Motors Ltd. Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Tata Motors Ltd.

Power Telecom Telecom Transport Equipments Transport Equipments Transport Equipments Transport Equipments Transport Equipments

2.10 Actual collection of data Basically, the data used in this dissertation are secondary in nature, which appeared in Economic Times and Business line and from the web site of Bombay Stock Exchange. Past three months (from March to May) daily closing price of all the stock of companies listed in Bombay Stock Exchange Sensex has been used in this dissertation have been used to test the applicability of Beta, Standard Deviation, alpha and Coefficient of Correlation, which are used to measure volatility of shares. 2.11 Techniques used for data analysis Basically whole data analysis has been performed using spreadsheet in Excel by using different statistical functions inbuilt in Excel. The following statistical functions have been employed during the data analysis. Average: Calculate the average of a given data. Correlation: Calculates the coefficient of correlation between Market Returns and Companies Returns. Slope: Calculates the Beta that shows the price of a security responds to market forces Alpha: Calculates the risk-adjusted measure of the so-called active return on an investment Standard Deviation: Calculates the standard deviation that measures the risk of an asset from the expected value of return.

Page 8

2.12 Limitation of the study The most important limitation of this study is that it considers only Sensex Companies listed in Bombay Stock Exchange.

Only three months duration has been taken for the study from March 2011to May 2011.

2.13 Chapter Scheme The first chapter deals with the introduction and back ground of the study responsible for price fluctuations, the types of volatility, statistical tools used for calculation of volatility.

The Second chapter deals with the Research design, it includes the title of the study, statement of the problem, need and importance of the study, objective of the study, methodology of the study, population size, sample size, sampling technique, actual data collection of data, technique used for data analysis, limitation of the study and chapter scheme.

The third chapter deals with the industry as well the profile of all the thirty companies are part of sensex.

The fourth chapter shows the analyses and interpretation. It includes the graphical representation of monthly average return of the Company vs Sensex return.

Page 9

CHAPTER III INTRODUCTION OF INDIA INFOLINE

Page 10

INDIA INFOLINE
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.

Page 11

HISTROY AND MILESTONES 1995 Commenced operations as an Equity Research firm 1997 Launched research products of leading Indian companies, key sectors and the
economy Client included leading FIIs, banks and companies.

1999 Launched www.indiainfoline.com 2000 Launched online trading through www.5paisa.com Started distribution of life
insurance and mutual fund

2003 Launched proprietary trading platform Trader Terminal for retail customers

2004 Acquired commodities broking license

Launched Portfolio Management Service

2005 Maiden IPO and listed on NSE, BSE 2006 Acquired membership of DGCX
Commenced the lending business

2007 Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

Transitioned to insurance broking model

2009 Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund Obtained Venture Capital license

2010 Received in-principle approval for membership of the Singapore Stock Exchange
Received membership of the Colombo Stock Exchange

Page 12

Page 13

Page 14

BUSINESS MODEL:
Business Description: Advisory and execution services for the entire gamut of financial services. Core Competencies: Advisory services powered by world- class research. Execution backed by cutting edge technology and personalized service.

Service Offerings:

Page 15

CHAPTER IV

PROFILE OF THE INDUSTRY AND COMPANY

Page 16

3.1 INDUSTRY PROFILE

The BSE Sensex or Bombay stock Exchange Sensitive index is a value-weighted index composed of 30 stocks with the base April 1979. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange, These companies account for around one-fifth of the market capitalization of the BSE. The base value of the Sensex on April 1, 1979 and the base year of BSE SENSEX is 1978-1979. At irregular interval, the Bombay Stock Exchange authorities review and modify its composition to make sure it reflects current market conditions. The abbreviated form Sensex was coined by Deepak Mohoni around 1990 while writing market analysis columns for some of the business newspapers and magazines. It gained popularity over the next year or two. The software industry comprises of business involved in the development maintenance and publication of computer software. The software industry started I the mid-1970s at the time of the personal computer revolution. The industry also includes
Page 17

software services, such as training and consultancy. The largest and most profitable of software companies are located in the United States. As of 2006, the software industry is dominated by Microsoft. Software magazines 500 list in 2005 shows the total amount of revenue brought in by software companies per locale, with the highest being California due to silicon valley and the amount of Fortune 500 software companies residing in that area. There are mainly two types of business in the software industry; those developing proprietary software such as Microsoft, and those developing open source software. Developing software is costly and involves software licensing and the need to protect from cracking and piracy. A pharmaceutical company or drug company is a commercial business licensed to research, develop, market and/or distribute drugs, most commonly in the context of healthcare. They can deal in generic and/or brand medications. They are subject to a variety of laws and regulations regarding the patenting, testing and marketing of drugs, particularly prescription drugs. From its beginnings at the start of the 19th century, the pharmaceutical industry is now one of the most successful and influential, attracting both praise and controversy The oil industry operates on the petroleum market. Petroleum is vital to nearly all other industries, if not industrialized civilization itself, and thus is critical concern to many nations. Oil accounts for a large percentage of the worlds energy consumption, ranging from a low of 32% for Europe and Asia, up to high of 53% for the Middle East. Other geographic regions consumption patterns are as follows: south and central America (44%), Africa (41%) and North America (40%). The world at large consumes 30 billion barrels (4.8km) of oil per year, and the top oil consumers largely consist of developed nations. In fact, 24% of the oil consumed in 2004 went to the United Stated alone. A publicly utility is a company that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities often involve natural monopolies, and as a result are often government monopolies, or if privately owned, treated as specially regulated sectors. The manufacturing industry includes those economic sectors that create a finished, usable product: manufacturing and construction. This sector of industry generally takes the output of the primary sector and manufacturing finished goods or product to a point where they are suitable for use by other businesses, for export, or sale to domestic consumers. This sector is often divided into light industry and heavy industry. Many of these industries consume large quantities of energy and require factories and machinery to convert the raw materials into goods and products. They also
Page 18

produce waste materials and waste heat that may pose environmental problems or cause pollution.

Page 19

Table 2. 30 COMPANIES IN SENSEX AND THEIR ADJUSTMENT FACTOR

CODE 5001 03 5005 10 5000 10 5001 80 5321 74 5001 12 5006 96 5008 75 5000 87 5328 68 5325 32 5002 09 5325 40 5076 85 5004 40 5322 86 5009 00 5004 70 5003 12 5003

30 BSE companies Bharat Heavy Electricals Ltd. Larsen & Toubro Limited HDFC HDFC Bank Ltd. ICICI Bank Ltd. State Bank of India Hindustan Unilever Ltd. ITC Ltd. Cipla Ltd. DLF Ltd. Jaiprakash Associates Ltd. Infosys Technologies Ltd. Tata Consultancy Services Limited Wipro Ltd. Hindalco Industries Ltd. Jindal Steel & Power Ltd. Sterlite Industries (India) Ltd. Tata Steel Ltd. ONGC Ltd. Reliance Industries Ltd.

Sectors Capital Goods Capital Goods Finance Finance Finance Finance FMCG FMCG Healthcare Housing Related Housing Related Information Technology Information Technology Information Technology Metal,Metal Products & Mining Metal,Metal Products & Mining Metal,Metal Products & Mining Metal,Metal Products & Mining Oil & Gas Oil & Gas

Adj. Factor 0.35 0.90 0.90 0.80 1.00 0.45 0.50 0.70 0.65 0.25 0.55 0.85 0.70 0.25 0.70 0.45 0.45 0.70 0.20 0.55 Page 20

25 5325 55 5003 90 5004 00 5324 54 5327 12 5329 77 5001 82 5005 20 5325 00 5005 70

NTPC Ltd. Reliance Infrastructure Ltd. Tata Power Company Ltd. Bharti Airtel Ltd. Reliance Communications Limited Bajaj Auto Limited Hero Honda Motors Ltd. Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Tata Motors Ltd.

Power Power Power Telecom Telecom Transport Equipments Transport Equipments Transport Equipments Transport Equipments Transport Equipments

0.20 0.55 0.70 0.35 0.35 0.50 0.50 0.80 0.50 0.70

Chart Showing Companies in Sensex and their Proportional Adjustment Factor from Table 2

Page 21

CHART 1

An overview of Sensex Mile stones

Page 22

1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results. 2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. 3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the marketfriendly Budget announced by the then Finance Minister, Dr Manmohan Singh. 4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling. 5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election. 6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006. 7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital, and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time. 8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading. 9000, November 28, 2005

Page 23

The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors. 10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006. 11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a lifetime peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points. 12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time. 13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000. 14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark. 15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to15,000 points. 16,000, September19, 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113
Page 24

points. The Sensex finally ended with its biggest-ever single day gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732. 17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921. 18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election. 19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670. 20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The

21,000 January 8, 2008

Page 25

The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back to profit booking. 15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21, 2008. 14,220, May 18, 2009 The sensex touched an intraday low of 12174 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week. 17,231, December 23, 2009 A few strong rallies and some big declines later, the sensex stood at 17,231.11 on Wednesday, the December 23, recording a strong gain of around 7,600 points or 78.6% for the year. The barometer, which had ended at 9647.31 on December 31, 2008, plunged to 8047.17 in early March 2009, and if one considers the surge from the low, the rise of the barometer looks even more attractive. 17,639 April 15, 2010 Market could not sustain morning gains and closed deep in the red after a sustained downward drift throughout the trading session. Sensex lost 182 points to close at 17639. 20,309 November 15, 2010 The sensex ended 152.80 points or 0.76 per cent higher at 20.309. 18,345.04 May 16, 2011 The BSE Sensex dipped 186 points to 18,345, following the steep rise in petrol prices, inflation and lead to further hike in interest rates.

Page 26

3.2 COMPANY PROFILE

Bharat Heavy Electricals Limited (BHEL) is a Gas and Steam turbine manufacturer in India. It is one of the 9th large Public Sector Undertaking known as navratnas or nine jewels. Some of its manufacturing units are located in Bhopal (Madhya Pradesh), Haridwar (Uttarkhand), Hyderabad (Andhra Pradesh), Trichi and Ranipet (Tamil Nadu) and Bangalore (Karnataka)/ BHEL is a key player I power sector through erection, commission and servicing of power plants all over th world. BHEL is an engineering conglomerate, offering a wide spectrum of products and services for core sectors like Power Generation, Transmission and Distribution, Industry, transportation, Oil & Gas, etc, besides supply of Non Conventional Energy Systems. Over 65% power generated in India is through the use of BHEL supplied equipment.

Larsen and Turbo Limited is Indias largest engineering and construction conglomerate with diverse interests such as Construction, hydraulics equipments, power services electrical and electronics, fertilizer projects, medical electronics and information technology. It generates almost 85% of its revenue from the construction business. Founded in 1938, the company is currently headquartered in Mumbai, India. A strong, customer-focussed approach and the constant quest for top-class quality have enabled the company to attain and sustain leadership position for over six decades. L&T has made Spectacular achievements in Indian industry. Many of the engineering projects executed by L&T have set new benchmark in terms of scale, sophistication and speed. So do many building, highways, bridges and civil structures around the country which are widely regarded as landmarks

HDFC or Housing development Finance Corporation Limited, was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs.100 million.

Page 27

HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial banks of India, was set in August 1944 after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Currently HDFC bank has over 600 branches located in over 300 cities of India, and all branches of the bank are linked on an online real-time basis. The bank offers many innovative products & services to individual, corporate, trusts, governments, partnerships, financial institutions, mutual funds and insurance companies. The bank also has over 1600 ATMs. In the next few months the number of branches and ATMs should go up substantially.

State bank of India (SBI) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Bengal, it is the oldest commercial bank in the Indian Subcontinent. SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base $322.077 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake. In recent years the bank has focused on two priorities, reducing its huge staff through Golden handshake schemes known as the voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, and, computerizing its operations. The State Bank of India traces its root to the first decade of 19 th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2nd June 1806. The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15th April 1840) and the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of India. The State Bank of India Act 1955, enacted by the parliament of India, authorized the Reserve Bank of India, which is the central banking organization of India, to acquire a controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on 30th April 1955.

Hindustan Unilever Limited, erstwhile Hindustan Lever Limited (also called HL), headquartered in Mumbai, is Indias largest consumer products company, formed in 1933 as Lever Brothers India Limited. Its 41,000 employees are headed by Mr.harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian
Page 28

products such as tea, soaps, detergents, as its products have become daily household name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Lever Limited. Recently in February 2007, the company has been renamed to Hindustan Unilever Limited to provide the optimum balance between maintaining the heritage of the company and the future benefits and synergies of global alignment with the corporate name of Unilever.

ITC Limited which previously stood for Imperial Tobacco Company, is one of Indias foremost private sector companies with a market capitalization of more than US $10 billion and a turnover of US $3.5 billion. Rated among the worlds Best Big Companies by Forbes magazine, ITC ranks third in pre-tax profit among Indias private sector corporations.

Cipla founded as the Chemical, Industrial & Pharmaceutical Laboratories is a major Indian pharmaceutical company, best-known for manufacturing economical anti-AIDS drugs. The company was founded in 1935 by Khwaja Abdul Hamied, and its chairman today is Yusuf Hamied, the founders eldest son. Today, cipla is the worlds largest manufacturer of antiretroviral drugs to fight HIV/AIDS, as measured by units produced, distributed and sold (multinational brand name drugs are exponentially more expensive, so in money terms Ciplas medicine are probably not in top spot)

DLF Limited or DLF (originally Delhi Land and Finance) is India's biggest real estate developer. The DLF Group was founded by Raghuvendra Singh in 1946 and is based in New Delhi, India. DLF developed residential colonies in Delhi such as Shivaji Park (their first development), Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash Colony, and Hauz Khas. DLF builds residential, office, and retail properties. With the passage of Delhi Development Act in 1957, the local government assumed control of real estate development in Delhi and banned private real estate developers. As a result DLF began acquiring land at relatively low cost outside the area controlled by the Delhi Development Authority, in the district of Gurgaon, in the adjacent state of Haryana. In the mid-1970s, the company started developing their DLF City project at Gurgaon. Its plans include hotels, infrastructure and special economic zones-related development projects.
Page 29

The company is headed by Indian billionaire Kushal Pal Singh, a Jat from Buland Shahar. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, was the 98th richest man in the world and the world's richest property developer. The company's US $2 billion IPO in July, 2007 was India's biggest IPO in history. In its first quarter results for the period ending 30 June 2007, the company reported a turnover of 3,120.98Crore and profits after taxes of 1,515.48Crore.

Jaypee Group was founded by Mr. Jaiprakash Gaur. Jaypee Group is five decade old conglomerate based in Noida, India, involved in various industries that include Engineering, construction, Cement, Power, Hospitality, Real Estate, Expressways, Highways, Education and Social Commitment. Shri. Jaiprakash Gaur, Founder Chairman of Jaiprakash Associates Limited after acquiring a Diploma in Civil Engineering in 1950 from the University of Roorkee, had a stint with Govt. of U.P. and branched off on his own, to start as a civil contractor in 1958, group is the 3rd largest cement producer in the country. The groups cement facilities are located today all over India in 10 states, with 18 plants having an aggregate cement production capacity of 24 Million Tonnes and same is poised to become 36 Million Tonnes before October 2011.

Infosys Technologies Limited, is an information technology (IT) services company founded in Pune. India in 1981 by N.R. Narayan Murthy and six of his colleagues. In 1983, Infosys moved its headquarter to Bangalore, the capital of Karnataka. It operates nine development centers in India and has over 30 officies worldwide, Annual revenues for fiscal year 2007 exceeded US $3.1 billion with a market capitalization of over US $30 billion. With over 72,000 employees worldwide, Infosys is one of Indias largest IT companies.

Tata Consultancy Services Limited (TCS) is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India. TCS is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India. TCS is one of the operative subsidiaries of one of India's largest and oldest conglomerate company, the Tata Group or Tata Sons Limited, which has interests in areas such as energy, telecommunications, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.

Page 30

Wipro Technologies is an IT service company established in 1980 in India. It is a subsidiary of Wipro Limited (incorporated 1946, in operation since 1945). It is headquartered in Bangalore. It is the third largest IT services company in India. It has 122,385 employee as of march 2011, inclusive of its BPO and which it acquired in 2002. Wipro Technologies has over 300 customers across USA, Europe and Japan including 50 of the Fortune 500 companies. Some of its customers are Boeing, Cisco, Ericsson, IBM, Microsoft, Prudential, Segate, Sony, SunMicrosystems and Toshiba. With revenue in the excess of US $6 billion, Wipro is one of Indias major information technology companies. Wipro had dedicated development centers and offices across India, Europe, North America and Asia Pacific. The current chairman, Managing director and majority stake owner is Azim Premji. From inception, the software and hardware divisions have been headed by him.

Jindal Steel and Power Limited (JSPL) is the most valuable private steel producer in India, with an annual turnover of over US $2.1 billion ( 11,000crore), Jindal Steel & Power Limited (JSPL) is a part of about US $12 billion diversified O. P. Jindal Group. JSPL is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. Mr. Naveen Jindal, the youngest son of the late Shri. O P Jindal, drives JSPL and its group companies Jindal Power Ltd, Jindal Petroleum Ltd., Jindal Cement Ltd. and Jindal Steel Bolivia. The company professes a belief in the concept of self-sufficiency. The company produces steel and power through backward integration from its own captive coal and iron-ore mines. However, in terms of tonnage, it is the third largest steel producer in India. The company manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron plant. The company is also involved in power generation. Jindal Steel and Power is a part of the Jindal Group, founded by O. P. Jindal (1930 2005). In 1969, he started Pipe Unit Jindal India Limited, one of the earlier incarnations of his business empire. After Jindal's death in 2005, much of his assets were transferred to his wife, Savitri Jindal. Jindal Group's management was then split among his four sons with Naveen Jindal as the Managing Director of Jindal Steel and Power Limited. His elder brother, Sajjan Jindal, is currently the head of ASSOCHAM, an influential body of the chambers of commerce, and the head of JSW Group, part of O.P. Jindal Group.

Page 31

Sterlite Industries India Ltd. (SLT) is a subsidiary of Vedanta Resources plc, a diversified and integrated metals and mining group. The company engages primarily in the production of copper in India. Its products include copper cathodes; and cast copper rods. The companys main operating subsidiaries are Hindustan Zinc Limited for its zinc and lead operations; Copper Mines of Tasmania Pty Limited for its copper operations in Australia; and Bharat Aluminium Company Limited for its aluminium operations. The company is entering into the commercial power generation business by setting up a large scale 2,400 MW coal based independent thermal power plant in Jharsuguda, Orissa and a wind energy project at Karnataka, Gujarat and Maharashtra, totaling 110.4 MW. Post completion of these projects, the company will have a total wind power capacity of 148.8 MW. As of March 31, 2010, it also operates a copper mine in Australia.

Tata steel, formerly known as TISCO (Tata Iron and Steel Company Limited), is a steel company based in Jamshedpur, India. Its main plant is located in Jamshedpur, Jharkhand, though with its recent acquisitions, the company has become a multinational with operation in various countries. The registered office of Tata Steel is in Mumbai. In the year 2000, the company was recognized as the worlds lowest-cost producer by World Steel Dynamics in 2005. The company is listed on BSE and NSE, Tata Steel is a limited company registered in India under the Companies Act, 1956.

Reliance Industries Limited (RIL) is the largest private sector conglomerate company headquartered at Mumbai, India. The company is largest by annual turnover of US $58.5 billion and market capitalization of US $78.2 billion for the fiscal year ending in March 2011 making it one of the largest India's private sector companies, being ranked at 264th position in the Fortune Global 500 (2009) and at the 126th position in the Forbes Global 2000 list (2010). Reliance was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled economy to his advantage. Though the company's petrochemicals, refining, and oil and gas-related operations form the core of its business, however, other segment of the company includes textile, retail
Page 32

business, telecommunications and special economic zone (SEZ) development. After severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies". In 2010, it stood at 13th position in the Platts Top 250 Global Energy Company Rankings.

NTPC Limited (formerly National Thermal Power Corporation) is the largest stateowned power generating company in India. Forbes Global 2000 for 2009 ranked it 317th in the world. It is an Indian public sector company listed on the Bombay Stock Exchange although at present the Government of India holds 84.5% (after divestment the stake by Indian government on 19 october2009 of its equity. With a current generating capacity of 34194 MW, NTPC has embarked on plans to become a 00,000 MW company by 2017. It was founded on November 7, 2011. NTPC's core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad.

Reliance Infrastructure, formerly known as Reliance Energy and prior to that as Bombay Suburban Electric Supply (BSES), Its India's largest private sector enterprise in power utility and its a company under the Reliance Anil Dhirubhai Ambani Group banner, one of India's largest conglomerates. The company is headed by Anil Ambani. The company's corporate headquarters is situated in Mumbai. The company is the sole distributor of electricity to consumers in the suburbs of Mumbai. It also runs power generation, transmission and distribution businesses in other parts of Maharashtra, Goa and Andhra Pradesh. Reliance Energy plans to increase its power generation capacity by adding 16,000 MW with investments of $13 billion.

Tata Power is Indias oldest and largest private sector power utility with an installed generation capacity of over 2977 MW. On the 22 March 2011 it has announced partnership with Sun energy an Australian firm, to build India's first floating solar plant. The firm started as the Tata Hydroelectric Power Supply Company in 1911, which amalgamated with the Andhra Valley Power Supply Company in 1916; it commissioned Indias first[citation needed] large hydro-electric project in 1915 in Bhivpuri and Khopoli, Karjat. Today the company is Indias largest private sector electricity generating

Page 33

company with an installed generation capacity of over 2977 MW. It has a presence in thermal, hydro, solar and wind areas of power generation, transmission and retail.

Bharti Airtel Limited commonly known as airtel, is an Indian telecommunications company that operates in 19 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across 19 countries at the end of 2010. It is the largest cellular service provider in India, with over 164.61 million subscribers at the end of 2011 April. Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. It is known for being the first mobile phone company in the world to outsource everything except marketing and sales and finance. Its network (base stations, microwave links, etc.) are maintained by Ericsson, Nokia Siemens Network and Huawei, business support by IBM and transmission towers by another company (Bharti Infratel Ltd. in India). Ericsson agreed for the first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enabled the company to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute). Call rates have come down much further. During the last financial year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the network infrastructure for the Telemedia Business

Reliance Communications Limited (commonly called RCOM) is a major Indian telecommunication company headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than 128 million subscribers. RCOM, founded by Dhirubhai H Ambani (19322002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of 64,000crore (US$13.6 billion), cash flows of 13,000crore ($2.8 billion), and a net profit of 8,400crore ($1.8 billion). The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and Singapore Stock Exchange respectively.

Bajaj Auto is a major Indian automobile manufacturer. It is Indias largest and the worlds 2th largest two-and three-wheeler maker. It is based in Pune, Maharashtra with plant in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auot males and
Page 34

exports motor scooters, motorcycles and the auto rickshaw. It is widely believed that Bajaj is headed for a de-merger into 2 separate companies: Bajaj Auto and Bajaj Finance. It is expected that sum of the parts created, will be worth more that the current whole, as was the case in the de-merger of Reliance Industries.

Hero Honda Motorcycles is the Worlds biggest manufacturer of motorcycles. Hero Honda is a 50:50 joint venture that began in 1984 between the hero group of India and Honda from Japan. It has been the worlds biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3million motorbikes in a single year. Hero Hondas Splendor is the worlds largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon both in India. It specializes in dual use motorcycles that are low powered but very fuel efficient.

Mahindra & Mahindra Limited is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. The company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan where he became the nation's first finance minister. The company changed its name to Mahindra & Mahindra in 1948. Mahindra & Mahindra was set up as a steel trading company in 1945. It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under license of the iconic Willys Jeep in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its flagship UV Scorpio and enjoys a growing global market presence in both the automotive and tractor businesses. Over the past few years, M&M has expanded into new industries and geographies. They entered into the two-wheeler segment by taking over Kinetic Motors in India. M&M also has controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor Company in 2011. Maruti Suzuki India Limited a partial subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Page 35

It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in New Delhi. Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive Company), is Indias largest passenger automobile and commercial vehicle manufacturing company. It is also the worlds largest commercial vehicle manufacturer. It is a part of Tata Group. Tata Motors is widely credited for putting India on the automotive map by designing and developing its own range of cars. Tata Motors date back to 1945 when they started making Trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors had created the wealth 320 billion during 2001-2006 among top 10 wealth creators in India. It has its manufacturing base in Jamshedpur, Lucknow and Pune. In 2004 it also bought Daewoos truck manufacturing unit in south Korea. In March, 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. Tata Motors and the Fiat group have signed a new Memorandum of Understanding (MoU) to establish a 50:50 joint venture toi manufacture passenger vehicles, engines and transmission systems for both domestic and export markets.

ICICI Bank Limited is a major banking and financial services company based in Mumbai. It is the second largest bank in India and the largest private sector bank in India by market capitalization. The bank also has a network of 2,529 branches (as on 31 March 2010) and about 6,102 ATMs in India and presence in 19 countries, as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's shares are listed on the stock exchanges at BSE, NSE, Kolkata and Vadodara (formerly Baroda) ; its ADRs trade on the New York Stock Exchange (NYSE). ICICI reported a 1.15% rise in net profit to 1,014.21crore on a 1.29% increase in total income to 9,712.31crore in Q2 September 2008 over Q2 September 2007. The bank's CASA ratio increased to 30% in 2008 from 25% in 2007. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and HDFC Bankits main competitors.

Page 36

Hindalco Industries Ltd. is one of the world's largest Aluminium manufacturing company and is a subsidiary of the Aditya Birla Group. It is run by one of the world's youngest billionaires, Mr. K.M. Birla. The company has annual sales of $ 5 billion and employs 13,675 people and is listed on Forbes 2000. A metals powerhouse with a turnover of US$ 14 billion, Hindalco is one of the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. On February 11, 2007, the company entered into an agreement to acquire the Canadian company Novelis for U$6 billion, making the combined entity the world's largest rolled-aluminium producer. On May 15, 2007, the acquisition was completed with Novelis shareholders receiving $44.93 per outstanding share of common stock. Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired 75,415,536 common shares of Novelis, representing 100 percent of the issued and outstanding common shares. Immediately after closing, AV Metals Inc. transferred the common shares of Novelis to its wholly owned subsidiary AV Aluminum Inc. Hindalco is listed on the 2011 Forbes Global 2000 at the position 643. Oil and Natural Gas Corporation Limited (ONGC) is an Indian state-owned oil and gas company headquartered at Dehradun, India. It is a Fortune Global 500 company ranked 413, and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India, according to filings with the BSE of latest quarter results External Link. It was set up as a commission on 14 August 1956. Indian government holds 74.14% equity stake in this company. ONGC is Asia's largest and most active company involved in exploration and production of oil. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of India's crude oil requirement. It owns and operates more than 11,000 kilometres of pipelines in India. It is one of the highest profit making companies in India. In 2010, it stood at 18th position in the Platts Top 250 Global Energy Company Rankings.

Page 37

CHAPTER V DATA ANALYSIS AND INTERPRETATION

Page 38

Table-3 Shows the closing prices of Sensex on date wise from March 2011 to May 2011
Date Close 3/1/2011 18446.5 3/3/2011 18489.76 3/4/2011 18486.45 3/7/2011 18222.67 3/8/2011 18439.65 3/9/2011 18469.95 3/10/2011 18327.98 3/11/2011 18174.09 3/14/2011 18439.48 3/15/2011 18167.64 3/16/2011 18358.69 3/17/2011 18149.87 3/18/2011 17878.81 3/21/2011 17839.05 3/22/2011 17988.3 3/23/2011 18206.16 3/24/2011 18350.74 3/25/2011 18815.64 3/28/2011 18943.14 3/29/2011 19120.8 3/30/2011 19290.18 3/31/2011 19445.22 4/1/2011 19420.39 4/4/2011 19701.73 4/5/2011 19686.82 4/6/2011 19612.2 4/7/2011 19591.18 Page 39

4/8/2011 4/11/2011 4/13/2011 4/15/2011 4/18/2011 4/19/2011 4/20/2011 4/21/2011 4/25/2011 4/26/2011 4/27/2011 4/28/2011 4/29/2011 5/2/2011 5/3/2011 5/4/2011 5/5/2011 5/6/2011 5/9/2011 5/10/2011 5/11/2011 5/12/2011 5/13/2011 5/16/2011 5/17/2011 5/18/2011 5/19/2011 5/20/2011 5/23/2011 5/24/2011 5/25/2011 5/26/2011 5/27/2011 5/30/2011 5/31/2011

19451.45 19262.54 19696.86 19386.82 19091.17 19121.83 19470.98 19602.23 19584.31 19545.35 19448.69 19292.02 19135.96 18998.02 18534.69 18469.36 18210.58 18518.81 18528.96 18512.77 18584.96 18335.79 18531.28 18345.03 18137.35 18086.2 18141.4 18326.09 17993.33 18011.97 17847.24 18044.64 18266.1 18232.06 18503.28

The Following chart shows the BSE Sensex movements from March 2011 to May 2011.

Page 40

CHART 2 INTERPRETATION:
For the week ended Date:- 7/03/2011 The BSE Sensex dropped 1.4% on Monday, with rate-sensitive sectors contributing the most to the losses, hit by political worries on the domestic front and surging crude oil prices. The banking sector index, auto sector index and realty index fell between 1.6% and 2.6%, as firm oil prices kept the focus on inflation concerns and more monetary tightening. The 30-share BSE index declined 1.43%, or 263.78 points, to 18,222.67 points, with 25 of its components declining. The BSE Sensex was at 18,222.67 decreasing by 263.78 points or by 1.43%. The top gainers of the BSE Sensex pack were Wipro Ltd. (Rs. 446.20,+1.04%), Tata Power Company Ltd. (Rs. 1230.35,+0.96%), Cipla Ltd. (Rs. 305.30,+0.38%), NTPC Ltd. (Rs. 179.60,+0.34%) and ITC Ltd. (Rs. 172.55,+0.03%) among others. The top losers of the BSE Sensex pack were Maruti Suzuki India Ltd. (Rs. 1264.70,3.73%), Tata Motors Ltd. (Rs. 1127.25,-3.64%), Reliance Communications Ltd. (Rs. 90.05,-3.48%), Bharat Heavy Electricals Ltd. (Rs. 2018.05,-3.21%) and State Bank of India (Rs. 2622.80,-2.87%) among others

For the week ended Date:- 14/03/2011

Page 41

The BSE Sensex rose 1.46%, or 265.39 points, to 18,439.48. The top gainers of the BSE Sensex pack were Reliance Communications Ltd. (Rs. 100.50,+4.36%), Tata Power Company Ltd. (Rs. 1248.85,+3.72%), Reliance Infrastructure Ltd. (Rs. 625.70,+3.48%), Tata Steel Ltd. (Rs. 601.05,+3.27%) and Jaiprakash Associates Ltd. (Rs. 84.15,+2.68%) among others. The top losers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 321.55,-0.40%), Hindustan Unilever Ltd. (Rs. 277.50,-0.16%), Oil And Natural Gas Corporation Ltd. (Rs. 280.90,-0.14%) and Hero Honda Motors Ltd. (Rs. 1531.15,-0.06%) among others For the week ended Date:-14/03/2011 The BSE Sensex was at 17,839.05 declined by 39.76 points or by 0.22%. The top gainers of the BSE Sensex pack were Jindal Steel & Power Ltd (Rs. 662.45, 1.95%), Mahindra & Mahindra Ltd (Rs. 641.75, 1.39%), Sterlite Industries (India) Ltd (Rs. 159.90, 1.07%), Housing Development Finance Corporation Ltd (Rs. 626.65, 0.92%) and Tata Steel Ltd (Rs. 601.50, 0.87%) among others. The top losers of the BSE Sensex pack were Hindalco Industries Ltd (Rs. 191.10, 3.12%), Hero Honda Motors Ltd (Rs. 1433.75, 2.74%), Maruti Suzuki India Ltd (Rs. 1131.35, 2.33%), Cipla Ltd (Rs. 287.60, 2.11%) and Wipro Ltd (Rs. 431.00, 1.90%) among others. For the week ended Date:- 28/03/2011 The BSE Sensex was at 18,943.14 advancing by 127.50 points or by 0.68%.The top gainers of the BSE Sensex pack were Tata Motors Ltd (Rs. 1220.30, 3.25%), Bharti Airtel Ltd (Rs. 347.80, 2.57%), Larsen & Toubro Ltd (Rs. 1639.20, 2.56%), Reliance Infrastructure Ltd (Rs. 662.10, 1.76%) and Maruti Suzuki India Ltd (Rs. 1201.80, 1.69%) among others. The top losers of the BSE Sensex pack were Jaiprakash Associates Ltd (Rs. 88.40, 2.16%), Reliance Communications Ltd (Rs. 105.20, 1.50%), Sterlite Industries (India) Ltd (Rs. 167.05, 0.89%), Infosys Technologies Ltd (Rs. 3139.55, 0.71%) and DLF Ltd (Rs. 246.95, 0.66%) among others. For the week ended Date:-04/04/2011 The BSE Sensex closed at 19,701.73 up by 281.34 points or by 1.45%.The top gainers of the BSE Sensex pack were Mahindra & Mahindra Ltd (Rs. 743.85, 4.75%), Jaiprakash Associates Ltd (Rs. 98.40, 3.25%), Bharat Heavy Electricals Ltd (Rs. 2173.80, 2.84%), HDFC Bank Ltd (Rs. 2398.45, 2.78%) and Tata Consultancy Services Ltd (Rs. 1211.50, 2.70%) among others. The top losers of the BSE Sensex pack were Reliance Communications Ltd (Rs. 109.15,
Page 42

2.24%), Hindustan Unilever Ltd (Rs. 279.45, 1.62%), Cipla Ltd (Rs. 315.95, 1.51%), Sterlite Industries (India) Ltd (Rs. 173.10, 0.37%) and Reliance Infrastructure Ltd (Rs. 692.30, 0.30%) among others. For the week ended Date:-11/04/2011 The BSE SENSEX was at 19262.54 down by 188.91 points or by 0.97 %.Gainers from the BSE Sensex pack were Infosys (0.9%) and Bharti Airtel (0.04%). Losers from the BSE Sensex pack were HDFC Bk (5%), BHEL (4.76%), HDFC (4.44%), Hindalco Inds (4.44%) and JP Asso (4.18%). For the week ended Date:-18/04/2011 The BSE SENSEX was at 19,091.17 down by 295.65 points or by 1.53 %.The top gainers of the BSE Sensex pack were Hero Honda Motors Ltd. (Rs. 1863.75,+1.80%), Hindustan Unilever Ltd. (Rs. 280.30,+1.65%), Bajaj Auto Ltd. (Rs. 1433.15,+1.09%), Oil And Natural Gas Corporation Ltd. (Rs. 287.85,+0.66%), Maruti Suzuki India Ltd. (Rs. 1260.85,+0.19%), among others. The top losers of the BSE Sensex pack were DLF Ltd. (Rs. 233.55,-4.69%), Tata Consultancy Services Ltd. (Rs. 1149.70,-3.43%), Jaiprakash Associates Ltd. (Rs. 96.00,3.13%), Tata Steel Ltd. (Rs. 611.95,-2.92%), Infosys Technologies Ltd. (Rs. 2905.20,2.80%), among others. For the week ended Date:- 25/04/11 The BSE Sensex closed at 19,584.31 down by 17.92 points or by 0.09%.The top gainers of the BSE Sensex pack were Sterlite Industries (India) Ltd. (Rs. 186.40, 4.40%), State Bank of India (Rs. 2919.35, 2.06%), Maruti Suzuki India Ltd. (Rs. 1326.55, 1.53%), Infosys Technologies Ltd. (Rs. 2942.15, 1.13%) and Larsen & Toubro Ltd. (Rs. 1721.50, 1.03%), among others. The top losers of the BSE Sensex pack were Reliance Industries Ltd. (Rs. 1009.10, 2.97%), DLF Ltd. (Rs. 241.50, 2.25%), Reliance Communications Ltd. (Rs. 104.80, 1.41%), Jaiprakash Associates Ltd. (Rs. 100.70, 0.98%) and Jindal Steel & Power Ltd. (Rs. 688.45, 0.76%), among others.

For the week ended Date:- 02/05/2011

Page 43

The BSE Sensex closed at 18,998.02 down by 137.94 points or by 0.72%. The top gainers of the BSE Sensex pack were Tata Power Company Ltd (Rs. 1334.75, 2.43%), Cipla Ltd (Rs. 314.90, 1.96%), DLF Ltd (Rs. 226.60, 1.66%), Bharti Airtel Ltd (Rs. 383.95, 1.36%) and Infosys Technologies Ltd (Rs. 2923.35, 0.60%), among others. The top losers of the BSE Sensex pack were State Bank of India (Rs. 2691.65, 4.06%), Maruti Suzuki India Ltd (Rs. 1288.50, 2.37%), Sterlite Industries (India) Ltd (Rs. 177.00, 2.26%), Bajaj Auto Ltd (Rs. 1432.20, 2.09%) and Reliance Industries Ltd (Rs. 964.70, 1.76%), among others. For the week ended Date:- 09/05/11 BSE SENSEX closed at 18528.96, up by 10.15 points or by 0.05 %.The top gainers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 364.55,+3.93%), Hindustan Unilever Ltd. (Rs. 284.45,+3.55%), Tata Power Company Ltd. (Rs. 1258.25,+2.49%), Jindal Steel & Power Ltd. (Rs. 636.40,+1.02%), Sterlite Industries (India) Ltd. (Rs. 169.20,+0.95%), among others. The top losers of the BSE Sensex pack were Maruti Suzuki India Ltd. (Rs. 1240.40,2.24%), Jaiprakash Associates Ltd. (Rs. 84.85,-1.91%), Tata Motors Ltd. (Rs. 1178.15,1.90%), Bajaj Auto Ltd. (Rs. 1294.75,-1.84%), Reliance Infrastructure Ltd. (Rs. 598.10,1.43%), among others. For the week ended Date:- 16/05/2011 The BSE Sensex closed at 18,345.03 down by 186.25 points or by 1.01%.The gainers from the BSE Sensex pack were Hero Honda Motors (Rs. 1864.95, 3.87%), Bharat Heavy Electricals Ltd (Rs. 2050.65, 0.93%), Bharti Airtel (Rs. 370.25, 0.83%) and TCS Ltd (Rs. 1,127.85, 0.01%). The top losers of the BSE Sensex pack were Jaiprakash Associates (Rs. 84.75, 3.20%), DLF Ltd (Rs. 225.70, 2.80%), Bajaj Auto Ltd (Rs. 1300.00, 2.79%), Mahindra & Mahindra Ltd (Rs. 673.15, 2.71%) and Tata Steel Ltd (Rs. 578.30, 2.64%), among others. For the week ended Date:- 23/05/2011 The BSE Sensex closed at 17,993.33 down by 332.76 points or by 1.82%. ITC Ltd (Rs. 190.05, 2.29%) was the only gainer from the BSE Sensex pack during todays trade. The top losers of the BSE Sensex pack were Bharat Heavy Electricals Ltd. (Rs. 1935.60, 6.69%), ICICI Bank Ltd. (Rs. 1006.55, 3.61%), Reliance Infrastructure Ltd. (Rs. 548.15, 3.57%), Tata Motors Ltd. (Rs. 1129.50, 3.36%) and Tata Steel Ltd. (Rs. 559.25, 3.30%), among others. For the week ended Date:- 30/05/2011
Page 44

The BSE Sensex closed at 18,232.06 down by 34.04 points or by 0.19%.The top gainers of the BSE Sensex pack were Cipla Ltd. (Rs. 329.55,+3.55%), Reliance Communications Ltd. (Rs. 87.50,+2.94%), DLF Ltd. (Rs. 231.00,+2.58%), Housing Development Finance Corporation Ltd. (Rs. 668.80,+1.90%) and Bajaj Auto Ltd. (Rs. 1330.00,+1.19%), among others. The top losers of the BSE Sensex pack were Mahindra & Mahindra Ltd. (Rs. 664.60,5.34%), Hindalco Industries Ltd. (Rs. 192.90,-2.33%), Oil And Natural Gas Corporation Ltd. (Rs. 278.40,-1.63%), Tata Motors Ltd. (Rs. 1078.15,-0.96%) and Jindal Steel & Power Ltd. (Rs. 635.65,-0.96%), among others.

Page 45

Analysis based on comparative Share Price Movement of Stocks of Different Sector, from data collected for three months. 1.1 CAPITAL GOODS STOCKS Table 4 Closing prices of few Banking Sector stocks selected at month end of three consecutive months from March 2011 to May 2011.
Capital goods 31st March 2060.85 1653.25

Company name Bharat Heavy Electricals Ltd. Larsen & Toubro Limited

29th April 2000.75 1597.9

31st May 1944.1 1644

The following chart shows the fluctuation in the share market price in BANKING SECTOR

Chart 3 Interpretation: The above chart shows from March to April the BHEL share price has been decreased by Rs. 60.1, from April to May it has been decreased by Rs.56.65. From March to May Larsen and Turbo share price has been decreased by Rs.55.35 and from April to May the share price it has been increased by Rs.46.1. 1.2 FINANCE STOCKS
Page 46

Table 5 Closing prices of few Finance Sector stocks selected at month end of three consecutive months from March 2011 to May 2011.

Company name HDFC HDFC Bank Ltd. ICICI Bank Ltd. State Bank of India

Finance 31st March 698 2342.95 1112.75 2767.9

29th April 708 2292.5 1114.25 2805.6

31st May 684.75 2388.3 1086 2297.8

The following chart shows the fluctuation in the share market price in FINANCE SECTOR

CHART 4 INTERPRETATION: The above chart shows from March to April the HDFC share price has been increased by Rs.10, from April to May it has been decreased by Rs.23.25. From March to April the HDFC Bank Ltd share price has been decreased by Rs.50.45 and from April to May it has been increased by Rs.95.8. From March to April the ICICI Bank Ltd share price has been increased by Rs.1.5 and from April to May it has been decreased by Rs.28.25. From March to April the State Bank of India Ltd share price has been increased by Rs.37.7 and from April to May it has been decreased by Rs.507.8. 1.3 FMCG STOCKS

Page 47

Table 6 Closing prices of few FMCG Sector stocks selected at month end of three consecutive months from March 2011 to May 2011.
FMCG 31st March 284.6 181.45

Company name Hindustan Unilever Ltd. ITC Ltd.

29th April 285.2 191.95

31st May 304.85 193.35

The following chart shows the fluctuation in the share market price in FMCG SECTOR

CHART 5 INTERPRETATION: The above chart shows from March to April the Hindustan Unilever Ltd share price has been increased by Rs.o.6, from April to May it has been increased by Rs.19.65, From March to April ITC Ltd share price has been increased by Rs.10.5 and from April to May it has been increased by Rs.11.9.

1.4 HEALTHCARE STOCKS

Page 48

Table 7 Closing prices of few Healthcare Sector stocks selected at month end of three consecutive months from March 2011 to May 2011.

Company name Cipla Ltd.

Healthcare 31st March 29th April 324.5 310

31st May 325.35

The following chart shows the fluctuation in the share market price in HEALTHCARE SECTOR

CHART 6 INTERPRETATION: The above chart shows from March to April the Cipla Ltd share price has been decreased by Rs.14.5, from April to May it has been increased by Rs.15.35.

1.5 HOUSING RELATED STOCKS

Page 49

Table 8 Closing prices of few Housing Related Sector stocks selected at month end of three consecutive months from March 2011 to May 2011
Housing Related 31st March 267.2 92.5

Company name DLF Ltd. Jaiprakash Associates Ltd.

29th April 222.9 92.7

31st May 238.55 86.5

The following chart shows the fluctuation in the share market price In HOUSING RELATED SECTOR

CHART 7 INTERPETATION: The above chart shows from March to April the DLF Ltd share price has been decreased by Rs.44.3, from April to May it has been incrased by Rs.15.65. From March to April the Jaiprakash Associates Ltd share price has been Rs.0.2, from April to May it has been increased by Rs.6.2.

1.6 INFORMATION TECHNOLOGY STOCKS

Page 50

Table 9 Closing prices of few Information Technology Sector stocks selected at month end of three consecutive months from March 2011 to May 2011
Information Technology Company name 31st March Infosys Technologies Ltd. 3236.75 Tata Consultancy Services Limited 1182.5 Wipro Ltd. 478.3

29th April 2905.95 1163.6 450.25

31st May 2791.85 1158.8 446.65

The following chart shows the fluctuation in the share market price in INFORMATION TECHNOLOGY

CHART 8 INTERPRETATION: The above chart shows from March to April the Infosys Technologies Ltd share price has been decreased by Rs.330.8, from April to May it has been decreased by Rs.114.1. From March to April the TCS Ltd share price has been decreased by Rs.18.9, from April to May it has been decreased by Rs.4.8. From March to April the Wipro Ltd share price has been decreased by Rs.28.05, from April to May it has been decreased by Rs.3.6. 1.7 METAL, METAL PRODUCT AND MINING STOCKS

Page 51

Table 10 Closing prices of few Metal, Metal Product and Mining Sector stocks selected at month end of three consecutive months from March 2011 to May 2011
Metal, Metal Products & Mining Company name 31st March 29th April Hindalco Industries Ltd. 208.65 215.55 Jindal Steel & Power Ltd. 698.6 653.2 Sterlite Industries (India) Ltd. 173.4 181.1 Tata Steel Ltd. 620.5 614.75 31st May 197.1 649.55 171.6 589.1

The following chart shows the fluctuation in the share market price in METAL, METAL PRODUCT AND MINING SECTOR

CHART 9 INTERPERTATION: The above chart shows from March to April the Hindalco Industries Ltd share price has been increased by Rs.6.9, from April to May it has been decreased by Rs.18.45. From March to April the Jindal and Power Steel Ltd share price has been decreased by Rs.45.4 and from April to May it has been decreased by Rs.3.65. From March to April the Sterlite Industries Ltd share price has been increased by Rs.7.7 and from April to May it has been decreased by Rs.9.5. From March to April the Tata Steel Ltd share price has been decreased by Rs.5.75 and from April to May it has been decreased by Rs.25.65. 1.8 OIL AND GAS STOCKS

Page 52

Table 11 Closing prices of few Oil & Gas Sector stocks selected at month end of three consecutive months from March 2011 to May 2011
oil & Gas 31st March 290.1 1,047.80

Company ONGC Ltd. Reliance Industries Ltd.

29th April 308.9 981.95

31st May 281.6 951.75

The following chart shows the fluctuation in the share market price in OIL AND GAS SECTOR

CHART 10 INTERPRETATION: The above chart shows from March to April the ONGC Ltd share price has been increased by Rs.18.8, from April to May it has been decreased by Rs.27.3. From March to April the Relaince Industries Ltd share price has been decreased by Rs.65.85 and from April to May it has been decreased by Rs.30.2.

1.9 TRASPORT EQUIPMENTS

Page 53

Table 12 Closing prices of few Transport Equipments Sector stocks selected at month end of three consecutive months from March 2011 to May 2011
Transport Equipments 31st March 1,459.80 1,586.55 698.6 1,263.55 1,247.50

Company name Bajaj Auto Limited Hero Honda Motors Ltd. Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Tata Motors Ltd.

29th April 1,474.00 1,709.65 753.8 1,319.75 1,229.10

31st May 1,344.35 1,853.15 672.15 1,227.50 1,092.50

The following chart shows the fluctuation in the share market price in TRANSPORT EQUIPMENT SECTOR

CHART 11 INTERPRETATION: The above chart shows from March to April the Bajaj Auto Ltd share price has been increased by Rs.14.20, from April to May it has been decreased by Rs.129.65. From March to April the Hero Honda Ltd share price has been increased by Rs.123.10 and from April to May it has been increased by Rs.143.50. From March to April the Mahindra and Mahindra Ltd share price has been increased by Rs.55.2 and from April to May it has been decreased by Rs.81.65. From March to April the Maruti Suzuki India Ltd share price has been increased by Rs.56.20 and from April
Page 54

to May it has been decreased by Rs.92.25. From March to April the Tata Motors Ltd share price has been decreased by Rs.18.40 and from April to May it has been decreased by Rs.136.60.

1.10 POWER Table 13 Closing prices of few POWER Sector stocks selected at month end of three consecutive months from March 2011 to May 2011

Company name NTPC Ltd. Reliance Infrastructure Ltd. Tata Power Company Ltd.

Power 31st March 193 687.8 1,330.35

29th April 181.95 657.1 1,301.05

31st May 168.95 569.3 1,232.60

The following chart shows the fluctuation in the share market price in POWER SECTOR

Page 55

CHART 12 INTERPRETATION: The above chart shows from March to April the NTPC Ltd share price has been decreased by Rs.11.05, from April to May it has been decreased by Rs.13. From March to April the Reliance Infrastructure Ltd share price has been decreased by Rs.30.07 and from April to May it has been increased by Rs.87.8. From March to April the Tata Power Company Ltd share price has been decreased by Rs.29.30 and from April to May it has been increased by Rs.68.45.

Price Movement of Selected Companies and Calculated Beta of Stocks. Table-14 Volatility of SBI Bank Returns
Page 56

Adj Adj SBI Sensex Date Close Close Returns Returns 3/1/201 2706. 18446. 1 9 5 3/3/201 18489. 1 2690 76 -0.63% 0.23% 3/4/201 2700. 18486. 1 2 45 0.38% -0.02% 3/7/201 2622. 18222. 1 8 67 -2.91% -1.44% 3/8/201 2644. 18439. 1 55 65 0.83% 1.18% 3/9/201 2632. 18469. 1 55 95 -0.45% 0.16% 3/10/20 2589. 18327. 11 7 98 -1.64% -0.77% 3/11/20 2571. 18174. 11 55 09 -0.70% -0.84% 3/14/20 2600. 18439. 11 1 48 1.10% 1.45% 3/15/20 2563. 18167. 11 45 64 -1.42% -1.49% 3/16/20 2642. 18358. 11 85 69 3.05% 1.05% 3/17/20 2618. 18149. 11 1 87 -0.94% -1.14% 3/18/20 2590. 17878. 11 65 81 -1.05% -1.50% 3/21/20 2582. 17839. 11 7 05 -0.31% -0.22% 3/22/20 2620. 17988. 11 95 3 1.47% 0.83% 3/23/20 2646. 18206. 11 7 16 0.98% 1.20% 3/24/20 2651. 18350. 11 7 74 0.19% 0.79% 3/25/20 2709. 18815. 11 45 64 2.15% 2.50% 3/28/20 2747. 18943. 11 3 14 1.39% 0.68% 3/29/20 2768. 19120. 11 65 8 0.77% 0.93% 3/30/20 2859. 19290. 11 25 18 3.22% 0.88% 3/31/20 2767. 19445. 11 9 22 -3.25% 0.80% 4/1/201 2719. 19420. 1 5 39 -1.76% -0.13% 4/4/201 2762. 19701. 1.56% 1.44% Page 57

1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11

35 2793. 9 2796. 8 2808. 35 2779 2779. 1 2819. 4 2803. 3 2752. 95 2738. 55 2795. 05 2860. 35 2919. 35 2934. 3 2910. 25 2858. 95 2805. 6 2691. 65 2583. 1 2617. 35 2602. 6 2642. 95 2623. 45 2628. 1 2674. 8

73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96

1.14% 0.10% 0.41% -1.05% 0.00% 1.44% -0.57% -1.81% -0.52% 2.04% 2.31% 2.04% 0.51% -0.82% -1.78% -1.88% -4.15% -4.12% 1.32% -0.57% 1.54% -0.74% 0.18% 1.76%

-0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% Page 58

5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11 Return Standa rd Deviati on

2642. 85 2649. 05 2617. 3 2413. 6 2355. 7 2327. 6 2322. 05 2252. 85 2221. 6 2175. 75 2188. 85 2234. 5 2236 2297. 8 -0.27% 0.02

18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28

-1.20% 0.23% -1.21% -8.10% -2.43% -1.20% -0.24% -3.03% -1.40% -2.09% 0.60% 2.06% 0.07% 2.73%

-1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%

0.01% 0.01

Alpha Beta Correlatio n

-0.27% 1.2 0.68

Analysis: In the above table shows the volatility of SBI bank since the beta of the company is high, so it highly volatile. The Coefficient of Correlation is positive. It means when market return increase, the companys return also increases.

Page 59

Table-15 Volatility of HDFC Bank Returns

Adj HDFC Bank Sensex Date Close Adj Close Returns Returns 3/1/201 2136. 1 3 18446.5 3/3/201 2193. 1 05 18489.76 2.62% 0.23% 3/4/201 2218. 1 45 18486.45 1.15% -0.02% 3/7/201 2177. 1 35 18222.67 -1.87% -1.44% 3/8/201 2206. 1 05 18439.65 1.31% 1.18% 3/9/201 2205. 1 6 18469.95 -0.02% 0.16% 3/10/20 2202. 11 15 18327.98 -0.16% -0.77% 3/11/20 2181. 11 75 18174.09 -0.93% -0.84% 3/14/20 2212. 11 75 18439.48 1.41% 1.45% 3/15/20 2185. 11 7 18167.64 -1.23% -1.49% 3/16/20 2184. 11 85 18358.69 -0.04% 1.05% 3/17/20 2183. 11 35 18149.87 -0.07% -1.14% 3/18/20 2153. 11 2 17878.81 -1.39% -1.50% 3/21/20 2154. 11 35 17839.05 0.05% -0.22% 3/22/20 2151. 11 55 17988.3 -0.13% 0.83% 3/23/20 2164. 11 4 18206.16 0.60% 1.20% 3/24/20 2191. 11 5 18350.74 1.24% 0.79%
Page 60

3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20

2261. 8 2291. 3 2306. 65 2337. 85 2342. 95 2345. 5 2398. 45 2391. 6 2377. 75 2354. 9 2352. 15 2296. 3 2372. 05 2360. 2 2315. 7 2348. 05 2371. 6 2403. 8 2389. 55 2360 2354. 95 2338. 85 2292.

18815.64 18943.14 19120.8 19290.18 19445.22 19420.39 19701.73 19686.82 19612.2 19591.18 19451.45 19262.54 19696.86 19386.82 19091.17 19121.83 19470.98 19602.23 19584.31 19545.35 19448.69 19292.02 19135.96

3.16% 1.30% 0.67% 1.34% 0.22% 0.11% 2.23% -0.29% -0.58% -0.97% -0.12% -2.40% 3.25% -0.50% -1.90% 1.39% 1.00% 1.35% -0.59% -1.24% -0.21% -0.69% -2.00%

2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81%
Page 61

11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11

5 2290. 7 2235. 8 2266 2212. 3 2299. 15 2281. 05 2246. 75 2254. 6 2239. 9 2254. 45 2249. 95 2254. 1 2265. 4 2271. 35 2316 2264. 3 2255. 15 2252. 65 2266. 65 2298. 15 2308. 3 2388. 3

18998.02 18534.69 18469.36 18210.58 18518.81 18528.96 18512.77 18584.96 18335.79 18531.28 18345.03 18137.35 18086.2 18141.4 18326.09 17993.33 18011.97 17847.24 18044.64 18266.1 18232.06 18503.28

-0.08% -2.43% 1.34% -2.40% 3.85% -0.79% -1.52% 0.35% -0.65% 0.65% -0.20% 0.18% 0.50% 0.26% 1.95% -2.26% -0.40% -0.11% 0.62% 1.38% 0.44% 3.41%

-0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%
Page 62

Return Standard Deviation

0.18% 0.01

0.01% 0.01 Alpha Beta Correlati on 0.18% 1.07

0.81 Analysis: The above table shows the volatility of HDFC bank. Since the beta of the company is high, then it is highly volatile. The coefficient of correlation of the company is positive. It means that market return increases, the companys return also increases.

Table-16 Volatility of Infosys Technology Returns

Date 3/3/201 1 3/4/201 1 3/7/201 1 3/8/201 1 3/9/201 1 3/10/20 11 3/11/20 11 3/14/20 11 3/15/20 11 3/16/20 11 3/17/20 11 Adj Close 3022. 1 3069 3044 3108. 15 3090 3089 3055 3097. 4 3040 3030 2983 Adj Close 18489. 76 18486. 45 18222. 67 18439. 65 18469. 95 18327. 98 18174. 09 18439. 48 18167. 64 18358. 69 18149. 87 HDFC Bank Returns -2.35% 1.54% -0.82% 2.09% -0.59% -0.03% -1.11% 1.38% -1.87% -0.33% -1.56% Sensex Returns 0.23% -0.02% -1.44% 1.18% 0.16% -0.77% -0.84% 1.45% -1.49% 1.05% -1.14% Page 63

3/18/20 11 3/21/20 11 3/22/20 11 3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20

2942. 05 2919. 9 2947 2991. 05 3005 3152 3139. 4 3166. 95 3176. 15 3240 3219. 1 3274 3280 3275. 4 3244. 05 3226 3236. 85 3305. 05 2980. 7 2903 2884. 95 2903 2903 2940 2937.

17878. 81 17839. 05 17988. 3 18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545.

-1.38% -0.76% 0.92% 1.48% 0.47% 4.78% -0.40% 0.87% 0.29% 1.99% -0.65% 1.69% 0.18% -0.14% -0.96% -0.56% 0.34% 2.09% -10.33% -2.64% -0.62% 0.62% 0.00% 1.27% -0.08%

-1.50% -0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% Page 64

11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11

6 2952. 25 2922. 25 2900 2923 2900 2866. 25 2840 2882. 45 2910 2875. 65 2905 2884 2885 2850 2847 2845. 1 2846. 05 2846 2840 2849 2794 2779. 6 2788 2781. 05

35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06

0.50% -1.02% -0.76% 0.79% -0.79% -1.17% -0.92% 1.48% 0.95% -1.19% 1.02% -0.73% 0.03% -1.22% -0.11% -0.07% 0.03% 0.00% -0.21% 0.32% -1.95% -0.52% 0.30% -0.25%

-0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% Page 65

5/31/20 11 Return Standa rd Deviati on

2792. 25

18503. 28 -0.17%

0.40% 0.01%

1.48%

0.02

0.01

Alpha Beta Correlati on

-0.17% 0.99 0.60

Analysis: The above table shows the volatility of Infosys. Since the beta of the company is less than 1, then it is less volatile. The Coefficient of the company is positive. It means that when markets return increase, the companys return also increases.

Table-17 Volatility of TCS Returns

Adj Adj Sensex Date Close Close TCS Returns Returns 3/1/201 1124. 18446. 1 7 5 3/3/201 1150. 18489. 1 3 76 2.25% 0.23% 3/4/201 1134. 18486. 1 5 45 -1.38% -0.02% 3/7/201 1108. 18222. 1 75 67 -2.30% -1.44% 3/8/201 1118. 18439. 1 85 65 0.91% 1.18% 3/9/201 1125. 18469. 1 35 95 0.58% 0.16% 3/10/20 1108. 18327. 11 3 98 -1.53% -0.77% 3/11/20 1076. 18174. 11 25 09 -2.93% -0.84% 3/14/20 1096. 18439. 1.88% 1.45% Page 66

11 3/15/20 11 3/16/20 11 3/17/20 11 3/18/20 11 3/21/20 11 3/22/20 11 3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11

65 1089. 8 1115. 5 1099. 55 1082. 4 1071. 95 1068. 95 1064. 1 1093. 45 1118. 2 1121. 2 1139. 25 1151. 35 1182. 5 1179. 65 1211. 5 1239. 4 1223. 85 1199. 4 1194. 9 1178. 7 1208. 95 1190. 55 1149. 7 1164. 85

48 18167. 64 18358. 69 18149. 87 17878. 81 17839. 05 17988. 3 18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83

-0.63% 2.33% -1.44% -1.57% -0.97% -0.28% -0.45% 2.72% 2.24% 0.27% 1.60% 1.06% 2.67% -0.24% 2.66% 2.28% -1.26% -2.02% -0.38% -1.37% 2.53% -1.53% -3.49% 1.31%

-1.49% 1.05% -1.14% -1.50% -0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% Page 67

4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20

1218. 8 1191. 65 1197. 7 1188. 4 1181. 3 1160. 05 1163. 6 1158. 4 1137. 3 1135. 95 1114. 5 1144. 55 1134. 15 1137. 05 1138. 4 1112. 15 1127. 7 1127. 85 1142. 5 1151. 6 1164. 7 1176. 4 1164. 1 1151. 6 1127.

19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847.

4.53% -2.25% 0.51% -0.78% -0.60% -1.82% 0.31% -0.45% -1.84% -0.12% -1.91% 2.66% -0.91% 0.26% 0.12% -2.33% 1.39% 0.01% 1.29% 0.79% 1.13% 1.00% -1.05% -1.08% -2.11%

1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% Page 68

11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11

55 1132. 45 1141. 45 1153. 25 1158. 8

24 18044. 64 18266. 1 18232. 06 18503. 28

0.43% 0.79% 1.03% 0.48%

1.10% 1.22% -0.19% 1.48%

Return Standa rd Deviati on

0.05%

0.01%

Alpha Beta Correlati on

0.04% 1.12 0.73

0.02

0.01

Analysis: The above table shows the volatility of TCS Return. Since the beta of the company is high, then it is highly volatile. The Coefficient of Correlation of the company is positive. It means that when market return increases, the companys return also increases.

Table-18 Volatiltiy of Jindal Returns

Adj Adj Sensex Date Close Close Jindal return Returns 3/1/201 672.2 18446. 1 5 5 3/3/201 18489. 1 669.2 76 -0.45% 0.23% 3/4/201 18486. 1 677.7 45 1.26% -0.02% 3/7/201 663.9 18222. 1 5 67 -2.05% -1.44% 3/8/201 671.3 18439. 1 5 65 1.11% 1.18% 3/9/201 666.7 18469. -0.69% 0.16% Page 69

1 3/10/20 11 3/11/20 11 3/14/20 11 3/15/20 11 3/16/20 11 3/17/20 11 3/18/20 11 3/21/20 11 3/22/20 11 3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11

5 659.1 650.5 664.2 5 661.9 664.1 654.3 649.8 662.4 5 660.4 656.1 5 659.8 665 668.1 678.6 688.7 5 698.6 699.8 5 711.1 714.3 710.7 5 706 700.5 678.8 681.8

95 18327. 98 18174. 09 18439. 48 18167. 64 18358. 69 18149. 87 17878. 81 17839. 05 17988. 3 18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86

-1.15% -1.31% 2.09% -0.35% 0.33% -1.49% -0.69% 1.93% -0.31% -0.65% 0.55% 0.79% 0.47% 1.56% 1.48% 1.42% 0.18% 1.59% 0.45% -0.50% -0.67% -0.78% -3.15% 0.44%

-0.77% -0.84% 1.45% -1.49% 1.05% -1.14% -1.50% -0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% Page 70

4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20

672.9 5 665.0 5 661.8 5 677.6 5 693.7 688.4 5 696 692.3 5 677.3 5 653.2 645.9 633.5 5 619.8 619.4 5 630 636.4 633.8 641 627.4 5 642.7 630.7 643.1 5 638.4 5 639.9 5 640.7

19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326.

-1.31% -1.18% -0.48% 2.36% 2.34% -0.76% 1.09% -0.53% -2.19% -3.63% -1.12% -1.93% -2.19% -0.06% 1.69% 1.01% -0.41% 1.13% -2.14% 2.40% -1.88% 1.95% -0.73% 0.23% 0.12%

-1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% Page 71

11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11 Return Standa rd Deviati on

626.4 627.7 5 634.8 5 640.0 5 641.8 635.6 5 649.5 5

09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28

-2.26% 0.22% 1.12% 0.82% 0.27% -0.96% 2.16% 0.01%

-1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%

-0.06%

0.01

0.01 Alpha Beta Correlati on -0.06% 0.87 0.66

Analysis: The above table shows the volatility of Jindal Steel return. Since the Beta is less than 1, then it is less volatile. The Coefficient of Correlation of the company is positive. It means that when market return increases, the companys return also increases.

Table-19 Volatility of Tata Steel Returns

Page 72

Adj Adj Tata steel Date Close Close Returns 3/1/201 18446. 1 634.3 5 3/3/201 18489. 1 623.4 76 -1.73% 3/4/201 18486. 1 617.6 45 -0.93% 3/7/201 602.8 18222. 1 5 67 -2.42% 3/8/201 614.5 18439. 1 5 65 1.92% 3/9/201 612.6 18469. 1 5 95 -0.31% 3/10/20 18327. 11 596.8 98 -2.62% 3/11/20 18174. 11 582 09 -2.51% 3/14/20 601.0 18439. 11 5 48 3.22% 3/15/20 18167. 11 593.5 64 -1.26% 3/16/20 599.4 18358. 11 5 69 1.00% 3/17/20 594.7 18149. 11 5 87 -0.79% 3/18/20 17878. 11 596.3 81 0.26% 3/21/20 17839. 11 601.5 05 0.87% 3/22/20 17988. 11 604.2 3 0.45% 3/23/20 18206. 11 610 16 0.96% 3/24/20 610.7 18350. 11 5 74 0.12% 3/25/20 18815. 11 613.6 64 0.47% 3/28/20 613.4 18943. 11 5 14 -0.02% 3/29/20 19120. 11 613.5 8 0.01% 3/30/20 19290. 11 616.4 18 0.47% 3/31/20 19445. 11 620.5 22 0.66% 4/1/201 625.6 19420. 0.83%

Sense x Return s

0.23% 0.02% 1.44% 1.18% 0.16% 0.77% 0.84% 1.45% 1.49% 1.05% 1.14% 1.50% 0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% Page 73

1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11

5 629.8 634.3 633.2 637.5 5 629.7 625.0 5 636 630.3 5 611.9 5 610.9 625 628.7 5 627.1 625.9 620.2 5 613.5 5 614.7 5 614 603.2 5 590.5 583.2 5 594.0 5 594.7 589.0 5

39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77

0.13% 0.66% 0.71% -0.17% 0.68% -1.24% -0.74% 1.74% -0.89% -2.96% -0.17% 2.28% 0.60% -0.26% -0.19% -0.91% -1.09% 0.20% -0.12% -1.77% -2.14% -1.24% 1.83% 0.11% -0.95% 1.44% 0.08% 0.38% 0.11% 0.72% 0.98% 2.23% 1.59% 1.54% 0.16% 1.81% 0.67% 0.09% 0.20% 0.50% 0.81% 0.81% 0.72% 2.47% 0.35% 1.41% 1.68% 0.05% 0.09% Page 74

5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11

593.3 5 584.4 5 594 578.3 574.5 5 571.5 5 562.8 578.3 5 559.2 5 566.2 561.5 572.6 585.3 5 580.3 5 589.1

18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28

0.73% -1.51% 1.62% -2.68% -0.65% -0.52% -1.54% 2.73% -3.36% 1.24% -0.83% 1.96% 2.20% -0.86% 1.50%

0.39% 1.35% 1.06% 1.01% 1.14% 0.28% 0.30% 1.01% 1.83% 0.10% 0.92% 1.10% 1.22% 0.19% 1.48%

Return Standa rd Deviati on

-0.12%

0.01%

0.01

0.01 Alpha Beta Correlati on -0.13% 1.02 0.76

Analysis: The above table shows the volatility of Tata Steel return. Since the beta of the company is high, then it is highly volatile. The Coefficient of Correlation of the company is positive. It means that when market return increases, the companys return also increases.
Page 75

Table-20 Volatility of Maruti Suzuki Returns

Adj Adj Sensex Date Close Close Maruti Returns Returns 3/1/201 1292. 18446. 1 9 5 3/3/201 1328. 18489. 1 25 76 2.70% 0.23% 3/4/201 1313. 18486. 1 75 45 -1.10% -0.02% 3/7/201 1264. 18222. 1 7 67 -3.81% -1.44% 3/8/201 1256. 18439. 1 5 65 -0.65% 1.18% 3/9/201 1266. 18469. 1 1 95 0.76% 0.16% 3/10/20 1269. 18327. 11 1 98 0.24% -0.77% 3/11/20 1252. 18174. 11 7 09 -1.30% -0.84% 3/14/20 1259. 18439. 11 25 48 0.52% 1.45% 3/15/20 1214. 18167. 11 5 64 -3.62% -1.49% 3/16/20 1223. 18358. 11 6 69 0.75% 1.05% 3/17/20 1169. 18149. 11 25 87 -4.54% -1.14% 3/18/20 1158. 17878. 11 3 81 -0.94% -1.50% 3/21/20 1131. 17839. 11 35 05 -2.35% -0.22% 3/22/20 1171. 17988. 11 85 3 3.52% 0.83% Page 76

3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20

1175. 65 1168. 6 1181. 8 1201. 8 1239. 25 1275. 65 1263. 55 1274. 35 1300. 7 1313 1294. 65 1279. 1 1254. 2 1237. 85 1277. 65 1258. 4 1260. 85 1250. 55 1265. 9 1306. 6 1326. 55 1301. 15 1315. 5 1303. 2 1319.

18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135.

0.32% -0.60% 1.12% 1.68% 3.07% 2.89% -0.95% 0.85% 2.05% 0.94% -1.41% -1.21% -1.97% -1.31% 3.16% -1.52% 0.19% -0.82% 1.22% 3.16% 1.52% -1.93% 1.10% -0.94% 1.26%

1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% Page 77

11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11

75 1291. 2 1273. 8 1255 1255. 8 1268. 85 1240. 4 1241. 25 1227. 05 1220. 95 1224. 3 1223. 9 1208. 9 1230 1213. 85 1221 1205. 2 1200 1204 1216 1215. 6 1209. 05 1227. 5

96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28

-2.19% -1.36% -1.49% 0.06% 1.03% -2.27% 0.07% -1.15% -0.50% 0.27% -0.03% -1.23% 1.73% -1.32% 0.59% -1.30% -0.43% 0.33% 0.99% -0.03% -0.54% 1.51%

-0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%

Return

-0.09%

0.01% Page 78

Standa rd Deviati on

0.02

0.01 Alpha Beta Correlati on -0.09% 0.90 0.57

Analysis: The above table shows the volatility of Maruti Suzuki. Since the Beta of the company is less, then it is less volatile. The Coefficient of Correlation of the company is positive. It means that when the market return increases, the companys return also increases.

Table-21 Volatility of Tata Motors Returns

Adj Adj Tatamotors Date Close Close Returns 3/1/201 1140. 18446. 1 4 5 Sensex Returns

Page 79

3/3/201 1 3/4/201 1 3/7/201 1 3/8/201 1 3/9/201 1 3/10/20 11 3/11/20 11 3/14/20 11 3/15/20 11 3/16/20 11 3/17/20 11 3/18/20 11 3/21/20 11 3/22/20 11 3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201

1175. 5 1169. 8 1127. 25 1160. 05 1161. 95 1163. 75 1157. 45 1168. 95 1143. 45 1162. 7 1142. 75 1117. 95 1122. 35 1136 1136. 75 1155. 55 1181. 85 1220. 3 1239. 2 1247. 05 1247. 5 1242. 9 1254. 3 1279. 85 1295.

18489. 76 18486. 45 18222. 67 18439. 65 18469. 95 18327. 98 18174. 09 18439. 48 18167. 64 18358. 69 18149. 87 17878. 81 17839. 05 17988. 3 18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612.

3.03% -0.49% -3.71% 2.87% 0.16% 0.15% -0.54% 0.99% -2.21% 1.67% -1.73% -2.19% 0.39% 1.21% 0.07% 1.64% 2.25% 3.20% 1.54% 0.63% 0.04% -0.37% 0.91% 2.02% 1.18%

0.23% -0.02% -1.44% 1.18% 0.16% -0.77% -0.84% 1.45% -1.49% 1.05% -1.14% -1.50% -0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% Page 80

1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11

05 1291. 6 1254. 95 1219. 25 1249. 8 1234. 95 1207. 95 1203. 3 1251. 35 1243. 85 1242. 9 1261. 55 1247. 9 1231. 7 1229. 1 1228. 55 1163. 45 1160. 5 1136. 7 1200. 95 1178. 15 1186. 1 1208 1190. 1 1210. 9

2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28

-0.27% -2.88% -2.89% 2.47% -1.20% -2.21% -0.39% 3.92% -0.60% -0.08% 1.49% -1.09% -1.31% -0.21% -0.04% -5.44% -0.25% -2.07% 5.50% -1.92% 0.67% 1.83% -1.49% 1.73%

-0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% Page 81

5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11 Return Standa rd Deviati on

1208. 15 1189. 6 1149. 6 1154. 15 1168. 8 1129. 5 1122. 3 1133. 5 1161. 25 1088. 65 1078. 15 1092. 5

18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28 -0.07%

-0.23% -1.55% -3.42% 0.40% 1.26% -3.42% -0.64% 0.99% 2.42% -6.46% -0.97% 1.32% 0.01%

-1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%

0.02

0.01 Alpha Beta Correlati on -0.08% 1.32 0.67

Analysis: The above table shows the Tata Motors Returns. Since the Beta of Tata Motors is more than 1, then it is highly volatile. The Coefficient of Correlation of the company is positive. It means that when the market return increases, the companys return also increases.

Page 82

Table-22 Volatility of Bharti Airtel Returns

Adj Adj Bharti airtel Sensex Date Close Close Returns Returns 3/1/201 337.8 18446. 1 5 5 3/3/201 18489. 1 330.7 76 -2.14% 0.23% 3/4/201 326.7 18486. 1 5 45 -1.20% -0.02% 3/7/201 323.9 18222. 1 5 67 -0.86% -1.44% 3/8/201 18439. 1 334.2 65 3.12% 1.18% 3/9/201 18469. 1 332.3 95 -0.57% 0.16% 3/10/20 18327. 11 329.7 98 -0.79% -0.77% 3/11/20 322.8 18174. 11 5 09 -2.10% -0.84% 3/14/20 321.5 18439. 11 5 48 -0.40% 1.45% 3/15/20 18167. 11 314.2 64 -2.31% -1.49% 3/16/20 320.4 18358. 11 5 69 1.97% 1.05% 3/17/20 18149. 11 318.3 87 -0.67% -1.14% 3/18/20 17878. 11 317.9 81 -0.13% -1.50% 3/21/20 317.3 17839. 11 5 05 -0.17% -0.22% 3/22/20 325.8 17988. 11 5 3 2.64% 0.83% 3/23/20 18206. 11 330.4 16 1.39% 1.20% 3/24/20 332.9 18350. 0.75% 0.79% Page 83

11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11 4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1

339.1 347.8 359.5 359.2 5 357.0 5 355.3 5 359.6 5 359.9 5 353.2 5 356.5 362.0 5 361.8 367.2 372.1 5 367.8 375.8 380.4 5 376.6 375.4 5 381.6 5 384.6 386.7 5 378.8 383.9 5

74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23 19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02

1.85% 2.53% 3.31% -0.07% -0.61% -0.48% 1.20% 0.08% -1.88% 0.92% 1.54% -0.07% 1.48% 1.34% -1.18% 2.15% 1.23% -1.02% -0.31% 1.64% 0.77% 0.56% -2.08% 1.35%

2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% -0.09% -0.20% -0.50% -0.81% -0.81% -0.72% Page 84

5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20 11 5/30/20 11 5/31/20 11

375.1 5 369.6 357.6 350.7 5 364.5 5 365.8 5 366.3 5 365.8 367.2 370.2 5 370.8 5 372 365.7 5 373.7 368.3 5 369.5 369 368.1 372.2 5 372.2 5 374.1 5

18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266. 1 18232. 06 18503. 28

-2.32% -1.49% -3.30% -1.93% 3.86% 0.36% 0.14% -0.15% 0.38% 0.83% 0.16% 0.31% -1.69% 2.15% -1.44% 0.31% -0.14% -0.24% 1.12% 0.00% 0.51%

-2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% -0.19% 1.48%

Retur n Stand ev

0.17% 0.02

0.01% 0.01 Page 85

Alpha Beta Correlati on

0.16% 0.63 0.45

Analysis: The above table shows the Bharti Airtel returns. Since the Beta is less than 1, then it is less volatile. The Coefficient of Correlation of the company is positive. It means that when the market return increases, the companys return also increases.

Table-23 Volatility of Reliance Communication Returns

Adj Adj Rel comm Sensex Date Close Close Returns Returns 3/1/201 18446. 1 90.35 5 3/3/201 18489. 1 93.05 76 2.94% 0.23% 3/4/201 18486. 1 93.15 45 0.11% -0.02% 3/7/201 18222. 1 89.7 67 -3.77% -1.44% 3/8/201 18439. 1 90.4 65 0.78% 1.18% 3/9/201 18469. 1 99.2 95 9.29% 0.16% 3/10/20 18327. 11 98.95 98 -0.25% -0.77% 3/11/20 18174. 11 96.2 09 -2.82% -0.84% 3/14/20 101.7 18439. 11 5 48 5.61% 1.45% 3/15/20 100.4 18167. 11 5 64 -1.29% -1.49% 3/16/20 102.7 18358. 2.22% 1.05% Page 86

11 3/17/20 11 3/18/20 11 3/21/20 11 3/22/20 11 3/23/20 11 3/24/20 11 3/25/20 11 3/28/20 11 3/29/20 11 3/30/20 11 3/31/20 11 4/1/201 1 4/4/201 1 4/5/201 1 4/6/201 1 4/7/201 1 4/8/201 1 4/11/20 11 4/13/20 11 4/15/20 11 4/18/20 11 4/19/20 11 4/20/20 11 4/21/20 11

106.3 103.9 103 103.9 104.5 105 106.5 105.1 109.9 109.8 107.8 111.7 109 111.8 5 110.9 110.6 109.2 106.8 5 109.1 5 107.4 5 105.5 107.9 106.2 5 106.0 5

69 18149. 87 17878. 81 17839. 05 17988. 3 18206. 16 18350. 74 18815. 64 18943. 14 19120. 8 19290. 18 19445. 22 19420. 39 19701. 73 19686. 82 19612. 2 19591. 18 19451. 45 19262. 54 19696. 86 19386. 82 19091. 17 19121. 83 19470. 98 19602. 23

3.45% -2.28% -0.87% 0.87% 0.58% 0.48% 1.42% -1.32% 4.47% -0.09% -1.84% 3.55% -2.45% 2.58% -0.85% -0.27% -1.27% -2.18% 2.13% -1.57% -1.83% 2.25% -1.54% -0.19%

-1.14% -1.50% -0.22% 0.83% 1.20% 0.79% 2.50% 0.68% 0.93% 0.88% 0.80% -0.13% 1.44% -0.08% -0.38% -0.11% -0.72% -0.98% 2.23% -1.59% -1.54% 0.16% 1.81% 0.67% Page 87

4/25/20 11 4/26/20 11 4/27/20 11 4/28/20 11 4/29/20 11 5/2/201 1 5/3/201 1 5/4/201 1 5/5/201 1 5/6/201 1 5/9/201 1 5/10/20 11 5/11/20 11 5/12/20 11 5/13/20 11 5/16/20 11 5/17/20 11 5/18/20 11 5/19/20 11 5/20/20 11 5/23/20 11 5/24/20 11 5/25/20 11 5/26/20 11 5/27/20

104.3 106.2 105.3 99.85 100.6 98.95 96.75 93.25 89 89.35 89.45 90.6 91.85 90.9 90.7 89.35 89.1 86.1 83.4 84.1 82.35 83.1 80.7 80.35 84.95

19584. 31 19545. 35 19448. 69 19292. 02 19135. 96 18998. 02 18534. 69 18469. 36 18210. 58 18518. 81 18528. 96 18512. 77 18584. 96 18335. 79 18531. 28 18345. 03 18137. 35 18086. 2 18141. 4 18326. 09 17993. 33 18011. 97 17847. 24 18044. 64 18266.

-1.66% 1.81% -0.85% -5.31% 0.75% -1.65% -2.25% -3.68% -4.66% 0.39% 0.11% 1.28% 1.37% -1.04% -0.22% -1.50% -0.28% -3.42% -3.19% 0.84% -2.10% 0.91% -2.93% -0.43% 5.57%

-0.09% -0.20% -0.50% -0.81% -0.81% -0.72% -2.47% -0.35% -1.41% 1.68% 0.05% -0.09% 0.39% -1.35% 1.06% -1.01% -1.14% -0.28% 0.30% 1.01% -1.83% 0.10% -0.92% 1.10% 1.22% Page 88

11 5/30/20 11 5/31/20 11 Return Standa rd Deviati on

86.9 89.8

1 18232. 06 18503. 28 -0.01%

2.27% 3.28% 0.01%

-0.19% 1.48%

0.03

0.01 Alpha Beta Correlati on -0.02% 1.08 0.45

Analysis: The above table shows the Reliance Communication returns. Since the Beta of the company is more than 1, then it is highly volatile. The Coefficient of Correlation of the company is positive. It means that when the market return increases, the companys return also increases.

Page 89

SUMMARY OF FINDINGS 4.1 FINDINGS OF SELECTED 10 COMPANIES

STATE BANK OF INDIA SBI has a Beta of 1.2, Alpha of -0.27%, coefficient of correlation 0.68 for the three months returns during March 2011 to May 2011. A Beta of 1.2 is more than the market return. It is proved that this company had high volatility compared to the market return. HDFC BANK OF INDIA HDFC has a Beta of 1.07, Alpha of 0.18%, Coefficient of Correlation 0.81, for the three months returns during March 2011 to May 2011. A Beta of 1.07 is greater than the market return. It is proved that this company has a high volatility compared to the market return. INFOSYS TECHNOLOGY Infosys has a Beta of 0.99, Alpha of -0.17%, Coefficient of Correlation 0.60, for the three months returns during March 2011 to May 2011. A Beta of 0.09 is less than the market return. It is proved that this company has a moderate volatility compared to the market return. TCS LTD TCS has a Beta of 1.12, Alpha of 0.04%, Coefficient of Correlation 0.73, for the three months returns during March 2011 to May 2011. A Beta of 1.12 is less than the market return. It is proved that this company has a highly volatility compared to the market return. JINDAL STEEL Jindal Steel has a Beta of 0.87, Alpha of -0.06%, Coefficient of Correlation 0.66, for the three months returns during March 2011 to May 2011. A Beta of 0.87 is less than the market return. It is proved that this company has a moderate volatility compared to the market return.

TATA STEEL
Page 90

Tata Steel has a Beta of 1.02, Alpha of -0.13%, Coefficient of Correlation 0.76, for the three months returns during March 2011 to May 2011. A Beta of 1.02 is less than the market return. It is proved that this company has a highly volatility compared to the market return. MARUTI SUZUKI INDIA LTD Maruti Suzuki India Ltd has a Beta of 0.90, Alpha of -0.9%, Coefficient of Correlation 0.57, for the three months returns during March 2011 to May 2011. A Beta of 0.90 is less than the market return. It is proved that this company has a moderate volatility compared to the market return. TATA MOTORS Tata Motors has a Beta of 1.32, Alpha of -0.08%, Coefficient of Correlation 0.67, for the three months returns during March 2011 to May 2011. A Beta of 1.32 is less than the market return. It is proved that this company has a highly volatility compared to the market return. BHARTI AIRTEL Bharti Airtel has a Beta of 0.63, Alpha of 0.16%, Coefficient of Correlation 0.45, for the three months returns during March 2011 to May 2011. A Beta of 0.63 is less than the market return. It is proved that this company has a moderate volatility compared to the market return. RELIANCE COMMUNICATION Reliance communication has a Beta of 1.08, Alpha of -0.12%, Coefficient of Correlation 0.45, for the three months returns during March 2011 to May 2011. A Beta of 1.08 is less than the market return. It is proved that this company has a highly volatility compared to the market return.

Page 91

Recommendation
Hope these recommendations will helpful for the investors and will make a lot more in the stock market. 1. Sell the securities if the investors have stocks and to buy there if the investor have cash. The golden principle in the market is Buy when everyone else sells and sells when everyone else buys. Because if there are more seller than buyer of stocks then the supply of stocks is greater than the demand for stock thus stock price will fall down. Then investor buy stock in this situation, the demand for their stock will rise if the demand of the shares increase automatically price of the securities will be increased. It follows the law of demand and supply.

2. While playing with stocks investor must be in safer side that means investors do not invest in securities by taking loans, credit, etc. from bank, friends, relatives etc.

3. Some of best advices to lower the risk are mentioned below: Do not put more then 10% of your money into any one stock. Buy stock with consistent and predictable earnings growth. Use stop-loss order to limit your risk.

4. The common sense investors entrusts his money in some good companies that put money to good use. Good companies will use money in effective ways to produce more wealth. One of the best ways to identify good company is to look at their Return on equity, which is essentially a measure of how will they create profits using shareholders investments.

Page 92

5. Give money as much time to grow as possible. If money doubled every five years

then Five Thousand rupees would turn into 3, 20,000 in thirty years. Over 10 years it would be only turn into 20,000. Big difference, it seems like magic, but its not. The earlier put money to work, the longer it work for investors, and the more wealth investor generates. If think about it, it makes a lot of sense. Wealth is generated via production. Money work in good companies for long time, the more time it has to produce further profit, profit which gets to be shared. The cool thing is that if put all profits at works, and effectively have more money generating more profit. This process can keep iterating so long as till withdrawn money.

6. Investors invest regularly and intentionally force themselves to put their money to work but dont throw money at any investment. Choose investment wisely. Dont chase after fads. If investors feel like selling, the market doing badly, investor should probably consider buying and if investors feel like buying (the market is doing well) investor should probably consider selling. No one can buy a stock and make money without doing proper work. Find a company with a great product. Products which have enough evidence to suggest shall click. Without for 3 ps price of the stock, promoter of the company and the product of the company. A product should generally have a long life cycle, like wipro, ITC etc and then thoroughly see the financial position of the company by reading its annual reports. Calculate the growth of the company and if find anything benefits then only go for it.

People generally panic and sell a share when a market is falling although the fundamental of the company have not changed. Once investors have bought the stock every 20% decline in its value is only a better opportunity to buy the stock. However one should revisit the performance of the company on say a quarterly basis and if there is any unacceptable deviation found in the working of the company one should not hesitate to sell the stock. Remember more fortunes have been lost on the stock market in waiting for the acquisition price of the stock then by any other folly. Never let the acquisition price of a stock govern the investors sell decision. Then wait for the milestone/date when you feel the companys profit will be the best when and if the results of the company come as you had anticipated, sell on good news. In the meanwhile, never try to trade on the stock and make small profits.

Page 93

Conclusion
In the analysis and data interpretation part we have seen that price movements of the stock over a time frame. From this we find that stock market price always fluctuate because of many influencing factors like political, economical, corporate news etc. over a short term.

Over a short term stock market will always remain volatile; it is Investment the better option against Trading. One can find Investing over a long period yields good return in stock market, rather than trading for short-term capital gain. Trading may leads to capital loss. So invest wisely. Hope my project guides investors in a proper way in stock market.

Page 94

BIBILOGRAPHY
Web Sites:

www.google.com www.economywatch.com www.moneycontrol.com www.bseindia.com www.finance.yahoo.com www.money.rediff.com www.businesstoday.com

NCFM Capital Market Module National Stock Exchange

Page 95

Page 96