Parimalanathan,MBA .Project Report

7/28/2019 Parimalanathan,MBA .Project Report

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A STUDY ON THE EQUITY SCRIPS PRICE

CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL

SECTORS WITH REFERENCE TO KOTAK SECURITIES LTD,

PERAMBALUR

Project report submitted in partial fulfillment of the requirement of Anna University of

Technology, Coimbatore for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

PARIMALA NATHAN.PRegister No: 098001602029

Under the guidance

Mrs. R.SERNMADEVI, M.B.A, M.Com. M.C.A., M.Phil, (Ph.D)

Senior Lecturer

DEPARTMENT OF MANAGEMENT STUDIES

CMS COLLEGE OF ENGINEERING

NAMAKKAL - 637003

MAY 2011


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ACKNOWLEDGEMENT

With great pleasure, I am presenting this project entitled A STUDY ON THE EQUITY

SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS

WITH REFERENCE TO KOTAK SECURITIES LTD, PERAMBALURA project of this

dimension would not have been possible without the sincere help and earnest support provided to

me from all sources that was approached.

I feel great pleasure to thank our beloved Mr.C.MUTHUSAMY, Founder and

Chairman of CMS College of Engineering, Namakkal, for the encouragement he rendered me

in doing the project well. Words are insufficient when we endeavor to express our heartfelt

thankfulness to Dr. NELSON KENNDY BABU, Principal, CMS College of Engineering, and

Namakkal who provides us all facilities during the course of study.

I express a deep sense of gratitude and hearty thanks to Head of the Department

Mr.K.G.SENTHILKUMAR, M.B.A., M.Phil, (Ph.D).CMS College of Engineering,

Namakkal for making all necessary arrangements for the successful completion of this project.

The project has been made possible by the greatest efforts and dedicated support

extended to me by my guide to LecturerMrs. R.SERANMADEVI, M.B.A, M.Com., M.C.A.,

M.Phil., (Ph.D)., and SeniorLecturer of CMS College of Engineering, Namakkal,

I extend my sincere thanks to Mr. A.VARATHARAJ, General Manager, Id needs, for

providing the opportunity to do this project. I also thank to Mr. B.SELVAKUMAR, Assistant

manager for his guidance in the company to collect the information needed for the work.

Above all, I thank, God Almighty for his entire blessing

P.PARIMALANATHAN


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BONAFIED CERTIFICATE

This is to certify that the main project entitled A STUDY ON THE EQUITY SCRIPSPRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH

REFERENCE TO KOTAK SECURITIES LTD, PERAMBALUR is a record of the work

done by PARIMALA NATHAN.P, (Register No.098001602029) Submitted in partial

fulfillment of the requirement for the award of degree of Master of Business Administration of

Anna University of Technology during the academic year 2011.

Project Guide Head of the Department

Submitted for the Project Viva-Voce examination held on

Internal Examiner External Examiner


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DECLARATION

I affirm that the project work title A STUDY ON THE EQUITY SCRIPS PRICECHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH

REFERENCE TO KOTAK SECURITIES LTD, PERAMBALUR being submitted in

partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION is the

original work carried out by me. It has not formed the part of any other project work submitted

for award of any degree or diploma, either in this or any other University.

Place: Signature of the student

Date: (PARIMALANATHAN.P)


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CONTENTS

S .NO Description Page No.

Bonafied certificate

Declaration

Acknowledgement

Contents

List of Tables

List of Charts

Abstract

1.

INTRODUCTION

1.1 Introduction to the study1.2 About the Industry1.3 About the company1.4 statement of the problem1.5 Objectives of the study

1.6Need For The Study1.7 Limitations of the study1.8 Research Methodology1.9 Analytical tools used

1581010

10111112

2.REVIEW OF LITERATURE 17

3.ANALYSIS & INTERPRETATION 21

4. FINDINGS & SUGGESTIONS

4.1 Findings4.2 Suggestions

7480

5. CONCLUSION 81

BIBLIOGRAPHY


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LIST OF TABLES

TABLENO LIST OF TABLE

PAGENO

3.1.1 Table showing November Month Moving Average Analysis 213.1.2 Table Showing December Month Moving Average Analysis 233.1.3 Table showing January Month Moving Average Analysis 253.1.4 Table showing February Month Moving Average Analysis 273.1.5 Table showing March Month Moving Average Analysis 293.2.1 Table Showing Price Volume Analysis for Axis Bank 313.2.2 Table Showing Price Volume Analysis for HDFC Bank 323.2.3 Table Showing Price Volume Analysis for IOB Bank 333.2.4 Table Showing Price Volume Analysis for SBI Bank 343.2.5 Table Showing Price Volume Analysis for HCL 353.2.6 Table Showing Price Volume Analysis for Insys Technologies 363.2.7 Table Showing Price Volume Analysis for Satyam Computer Services 373.2.8 Table Showing Price Volume Analysis for TCS Ltd 383.2.9 Table Showing Price Volume Analysis for Ashok Leyland 393.2.10 Table Showing Price Volume Analysis for Bajaj Auto 403.2.11 Table Showing Price Volume Analysis for Hero Honda Motors 413.2.12 Table Showing Price Volume Analysis for Tata Motors 423.2.13 Table Showing Price Volume Analysis for ACC Cement 433.2.14 Table Showing Price Volume Analysis for Ambuja Cement 443.2.15 Table Showing Price Volume Analysis for Birla Ltd 453.2.16 Table Showing Price Volume Analysis for Ultratech Cement 46

3.2.17 Table Showing Price Volume Analysis forBharat PetroleumCorporationLtd

47

3.2.18 Table Showing Price Volume Analysis forHindustan PetroleumCorporation Ltd

48

3.2.19 Table Showing Price Volume Analysis for Indian Oil Corporation 493.2.20 Table Showing Price Volume Analysis forOil India 503.3.1 Table Showing for Market Capitalization Rates 51

3.4.1.1 Internal Analysis of Growth Rate Of the Axis Bank, Hdfc Bank, IobBank And The Sbi Bank

53

3.4.1.2 Growth Rate of the Hcl, Insys Technologies, Satyam Computers, And The

Tcs Ltd

54

3.4.1.3 Growth Rate of the Ashok Leyland, Bajaj Auto, Hero Honda Motors AndThe Tata Motors

55

3.4.1.4 Growth Rate of the Acc Cement, Ambuja Cement, Birla Ltd And TheUltratech Cement

56

3.4.1.5 Growth Rate of the Bpcl, Hpcl, IOB, And The Oil India 573.4.2.1 Sector Analysis Growth Rate Of the Bse Bankex and The Bse IT 583.4.2.2 Growth Rate of The BSE BANKEX And The BSE AUTO 58
http://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Indian_Oilhttp://en.wikipedia.org/wiki/Oil_Indiahttp://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Indian_Oilhttp://en.wikipedia.org/wiki/Oil_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleum


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3.4.2.3 Growth Rate of The BSE BANKEX And The BSE CEMENT 593.4.2.4 Growth Rate of The BSE BANKEX And The BSE OIL 603.4.2.5 Growth Rate of the BSE IT and the BSE AUTO 603.4.2.6 Growth Rate of the BSE CEMENT and the BSE OIL 613.5.1 Table Showing Standard Deviation 62

3.6.1 Table Showing Beta Analysis Of Bse Banker & Bse It 633.6.2 Table Showing Beta Analysis Of Bse Banker & Bse Auto 643.6.3 Table Showing Beta Analysis Of Bse Banker & Bse Cement 653.6.4 Table Showing Beta Analysis Of Bse Banker & Bse Oil 663.6.5 Table Showing Beta Analysis Of Bse It & Bse Auto 673.6.6 Table Showing Beta Analysis Of Bse Cement & Bse Oil 683.7.1 Performance AnalysisSensex And Nse Index Movement Form Nov 2010

to Mar. 201169

3.8.1 Table Showing Sharp Measures 723.9.1 Table Showing Trey nor Measures 73

LIST OF CHARTS

CHARTNO

LIST OF CHARTS

PAGENO

3.1.1 Chart showing November Month Moving Average Analysis 22

3.1.2 Chart showing December Month Moving Average Analysis 243.1.3 Chart showing January Month Moving Average Analysis 26

3.1.4 Chart showing February Month Moving Average Analysis 28

3.1.5 Chart showing March Month Moving Average Analysis 303.2.1 Chart showing Price Volume Analysis for Axis Bank 313.2.2 Chart showing Price Volume Analysis for HDFC Bank 323.2.3 Chart showing Price Volume Analysis for IOB Bank 333.2.4 Chart showing Price Volume Analysis for SBI Bank 343.2.5 Chart showing Price Volume Analysis for HCL 353.2.6 Chart showing Price Volume Analysis for Insys Technologies 363.2.7 Chart showing Price Volume Analysis for Satyam Computer Services 37


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3.2.8 Chart showing Price Volume Analysis for TCS Ltd 383.2.9 Chart showing Price Volume Analysis for Ashok Leyland 393.2.10 Chart showing Price Volume Analysis for Bajaj Auto 403.2.11 Chart showing Price Volume Analysis for Hero Honda Motors 413.2.12 Chart showing Price Volume Analysis for Tata Motors 42

3.2.13 Chart showing Price Volume Analysis for ACC Cement 433.2.14 Chart showing Price Volume Analysis for Ambuja Cement 443.2.15 Chart showing Price Volume Analysis for Birla Ltd 453.2.16 Chart showing Price Volume Analysis for Ultratech Cement 463.2.17 Chart showing Price Volume Analysis forBharat PetroleumCorporation Ltd 473.2.18 Chart showing Price Volume Analysis forHindustan Petroleum Corporation

Ltd48

3.2.19 Chart showing Price Volume Analysis for Indian Oil Corporation 493.2.20 Chart showing Price Volume Analysis forOil India 503.3.1 Chart showing for Market Capitalization Rates 523.7.1 Performance AnalysisSensex And Nse Index Movement Form Nov 2010 to

Mar 2011

70

3.8.1 Chart showing Sharp Measures 723.9.1 Chart showing Trey nor Measures 73

ABSTRACT

This study entitled A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF

BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO

KOTAK SECURITIES LTD, PERAMBALUR. Kotak securities ltd is one of the number one

stock broking firms located in Perambalur. Its complete financial solutions as its key focus area

the bank will offer wide range of financial product and advisory services that enhances consumer

wealth. A project aimed at studying the perception of the investor in equity shares.

The entire study has been divided into five chapters. The first chapter deals with

introduction to the study, which deals with who exactly investors are and what kind of perception

they have in relation to the equity shares.
http://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Indian_Oilhttp://en.wikipedia.org/wiki/Oil_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Indian_Oilhttp://en.wikipedia.org/wiki/Oil_India


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The research design for this study analytical in nature. In this study secondary data is

being employed for analysis. The data was collected using Nse & Bse standardized dates.

CHAPTER 1

1. INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

After liberalization our country has vast development in all the sectors like infrastructure,

human resources, real estate, telecommunication etc., now a days more MNC companies

providing good employment with high paid salaries for the people so the people want to save

their money by investing in stock market though they have interest in stock market most of the

people do not know about the procedures and rules about the stock market.

More over the investor do not have idea about the scrip which are better performing in

stock market because in stock there are different divisions like Bank sectors, IT sectors, Cement


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sectors, Automobile sectors, Oil sectors. etc, so to avoid the confusions for the investors and to

help the investors we undertake the study for analyzing Five sectors BANK SECTORS, IT

SECTORS, CEMENT SECTORS, AUTOMOBILE SECTORS, OIL SECTORS with the help of

necessary technical tools.

The reason for selecting the five sectors from the stock exchange because they are the

most active trading sectors in the stock exchange. Any positive and negative changes it will

affect the stock exchange greatly.

So the study will be useful for all the investors as they can see the performance of

all the five sectors according to that they can take decisions for investing in the stock market.

INTRODUCTION TO FINANCIAL MARKETS

GLOBAL SCENARIO:Globalization for the financial services industry implies both harmonization of rules and

regulation of barriers that will allow for the free flow of capital and permit all firms compete in

all markets.

Technologies advances in the area of information processing and

telecommunication have driven the globalization of capital markets. The liberalization of

restriction on the cross border flow of capital, the deregulation of domestic capital markets, the

development of unregulated offshore markets, the explosive growth of derivative products that

allow fluid movements between currencies and even greater competition among these markets

for a share of the worlds transaction business.

As financial globalization progresses, financial services will become more integrated,

more competitive and more concentrated. Also, firms that survive will become more efficient

and consumers of financial services will benefit considerably.

INDIAN SCENARIO:

Indian scenario is no different from the global environment. Financial markets world over

are rapidly changing and with the technological revolution all are getting interlinked and

changing into one giant global market where anyone can operate from anywhere. Into this wider

horizon and newer vistas the Indian markets have started entering. Indian markets are fast

changing gearing itself with the global markets.


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TYPES OF FINANCIAL MARKETS:

Financial markets are of various types, they are:

PURPOSE OF FINANCIAL MARKETS

The very purpose of any market is to facilitate trade. It is nothing different with the

financial markets. Markets now-a-days are becoming more and more competitive, complex and

interlinked. Repercussion in one market is felt in the other markets. Clear example for this is

recent Asian economic crisis which went into recession. Another example for this is recent boom

in the American markets. Their implications are clearly felt in recent surge in Indian stock

markets, which made BSE index cross 22000 marks

NATURE OF FINANCIAL MARKETS:

Markets all over have similar nature. All markets are dependent on people and they help

in bringing people together. Today if world is said to be a global village, it is because of

development of huge markets. Markets reflect the psychology of people. They are fast changing

Cash markets Stock markets Commodities markets Currency markets

Bond markets Derivative instrument markets

Gilt markets

Option marketsFutures markets


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and reflect the society. It is same with the financial markets. It is said that stock markets indicate

the future position of the economy.

Therefore it is very important for everyone to study and understand the markets thoroughly

before entering into the market. It is true for any market and it is all the more important in the

financial markets especially stock markets. This is due to the uncertainty associated with the

stock market. It is this uncertainty that makes stock market more thrilling and awesome. All are

inherently risky and intriguing.

PLAYERS IN THE FINANCIAL MARKETS

There are many players in the stock market obviously they are different types of

people with different motives. However most of the players will be playing with an objective to

make money. They can be broadly categorized as follows

Why do people invest:-

Fundamentally the first question that needs to be asked is why do people invest?

Primarily to make money. There are people who buy and sell stocks for the thrill of it, but most

people invest with the idea that they will be able to make profit. This holds true for individual

investors as well as institutional investors, pension fund managers and so forth.

What methods do they use:-

What methods do people use to make money i.e., what are their investment strategies?

Some people are highly risk averse. These people may buy government bonds and hold them to

Institution Individual


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maturity thus avoiding any price risk. They are content to make the stated coupon rate on the

bonds. Others may have a slight greater appetite for risk and may choose to put their money in

blue chip stocks that have a long history of regular dividend and any increase in wealth due to

appreciation of the stock price is considered as gravy. Many people also purchase stocks that

have a fair dividend return with some potential for price appreciation. These investors are trading

some risk for the added benefit of potential price increases.

This is large middle ground investors that use mutual funds for their investments. They

dont feel that they either have the time or the expertise to pick stocks. So they are content to buy

into a fund and make the average rate of return. Even with in the universe of mutual funds there

are income funds, growth funds, bond funds and so forth.

At the other end of the spectrum, there are people who are extreme risk takers. Thesetraders may not position longer than several hours and may scalp the difference in the small price

changes as profit. There are institutional money managers who spend several hours each day

doing research on stocks in an attempt to find attractive buys. Some of these buys may be quite

risky, but the managers have done their homework and feel confident about prospects for

success.

1.2ABOUT THE INDUSTRY

Evolution of Indian stock market

Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200

years ago. The earliest records of security dealings in India are meager and obscure. The East

India Company was the dominant institution in those days and business in its loan securities used

to be transacted towards the close of the eighteenth century.

By 1830s business on corporate stocks and shares in bank and cotton presses took

place in Bombay. Though the trading list was broader in 1839, there were only half a dozen

brokers recognized by banks and merchants during 1840 and 1850.

The 1850s witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into 60. In 1860-61 the American Civil War broke out and cotton


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supply from United States of Europe was stopped; thus, the Share Mania in India begun. The

no of brokers increased to about 200 to 250. However, at the end of the American Civil War, in

1865, a disastrous slump begun (for example, Bank of Bombay Share which had touched

Rs.2850 could only be sold at Rs.87).

At the end of the American Civil War, the brokers who thrived out of civil war in

1874, found a place in a street (now appropriately called as Dalal Street) where they would

conveniently assemble and transact business. In 1887, they formally established in Bombay, the

Native Share and Stock Brokers Association (which is alternatively known as The Stock

Exchange). In 1895, the Stock Exchange acquired a premise in the same street and it was

inaugurated in 1899. Thus, the stock exchange at Bombay was consolidated.

Trading Pattern of the Indian Stock

Trading in Indian stock exchanges are limited to listed securities of public limitedcompanies. They are broadly divided into two categories, namely, specified securities (forward

list) and non-specified securities (cash list). Equity shares of dividend paying, growth-oriented

companies with a paid-up capital of at least Rs.50 million and a market capitalization of atleast

Rs.100 million and having more than 20,000 shareholders are normally, put in the specified

group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot

delivery transactions for delivery and payment within the time or on the date stipulated when

entering into the contract which shall not be more than 14 days following the date of the

contract (b) forward transactions delivery and payment can be extended by further period of 14

days each so that the overall period does not exceed 90 days from the date of the contract. The

latter is permitted only in the case of specified shares. The brokers who carry over the

outstanding pay carry over charges (can tango or backwardation) which are usually determined

by the rates of interest prevailing.

A member broker in an Indian stock exchanges can act as an agent, buy and sell

securities for his clients on a commission basis and also can act as a trader or dealer as a

principal, buy and sell securities on his own account and risk, in contrast with the practice

prevailing on New York and London stock exchanges, where a member can act as a jobber or a

broker only.


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However, there is a great amount of effort to modernize the Indian stock exchanges in the

very recent times.

BSE (BOMBAY STOCK EXCHANGE)

The BSE (Corporatization and Demutualization) Scheme, 2005

Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange in Asia

with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock

Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent

recognition in 1956 from the Government of India under the Securities Contracts (Regulation)

Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital

market is widely recognized and its index, SENSEX, is tracked worldwide.

Earlier an Association of Persons (AOP), the Exchange is now a demutualised and

corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to

the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and

Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of

Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th

August, 2005. The 'Due Date' for taking over the business and operations of the BSE, by

the Exchange was fixed for 19th August, 2005, under the Scheme. The Exchange has succeeded

the business and operations of BSE ongoing concern basis and its recognition as an Exchange

has been continued by SEBI.

With demutualization, the trading rights and ownership rights have been de-linked

effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange

is professionally managed under the overall direction of the Board of Directors. The Board

comprises eminent professionals, representatives of Trading Members and the Managing

Director of the Exchange. The Board is inclusive and is designed to benefit from the

participation of market intermediaries.


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In terms of organization structure, the Board formulates larger policy issues and exercises

over-all control. The committees constituted by the Board are broad-based. The day-to-day

operations of the Exchange are managed by the Managing Director & CEO and a management

team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India.

The systems and processes of the Exchange are designed to safeguard market integrity and

enhance transparency in operations. During the year 2004-2005, the trading volumes on the

Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt

instruments and derivatives. The BSE's On-Line Trading System (BOLT) is a proprietary

system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing &

settlement functions of the Exchange are ISO 9001:2000 certified.

1.3ABOUT THE COMPANY

Kotak securities Ltd is listed on both the leading stock exchanges in India, viz. Stock

Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The Kotak securities Ltd,

comprising the holding company, Kotak securities Ltd and its subsidiaries, straddles the entire

financial services space with offerings ranging from Equity research, Equities and derivatives

trading, Currency Derivatives trading, Futures trading, Options trading, Capital trading,Commodity trading,

Gold bonds and other small savings instruments in Kotak securities Ltd. Kotak Securities

Ltd, a strategic joint venture between a Kotak bank and Goldman Sachs (holding 25% - one of


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the worlds leading investment banks and brokerage firms) is Indias leading stock broking

house with a market share of 4- 6%.

Kotak Securities Ltd servicing around 50Clients, through our own offices and a small

franchisee network. Its has an Online presence through Kotak securities.com where we offer

Internet Broking services.

Kotak securities Ltd

Trading Preference

Listed on NSE & BSE

Products and services

Equities

Derivatives Market

Commodity market

Futures trading

Options trading

PRODUCT & SERVICES PROFILE:

KOTAK SECURITIES LTD:

Kotak securities Ltd is a 100% subsidiary ofKotak securities Ltd, which is engaged

in the businesses of Equities broking and Portfolio Management Services. It holds memberships

of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the


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National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments

of the NSE as well as the Cash segment of the BSE.

A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients.

These services are offered to clients as different schemes, which are based on differing

investment strategies made to reflect the varied risk-return preferences of clients.

KOTAK SECURITIES COMMODITIES LTD:

Kotak securities Commodities Ltd is a 100% subsidiary of Kotak securities Ltd,

which is engaged in the business of commodities broking. Our experience in securities broking

empowered us with the requisite skills and technologies to allow us offer commodities broking

as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and

NCDEX, two leading Indian commodities exchanges, and recently acquired membership of

DGCX. We have a multi-channel delivery model, making it among the select few to online as

well as offline trading facilities.

KOTAK SECURITIES INVESTMENT SERVICES LTD:

Kotak Securities Investment Services Ltd is also a 100% subsidiary of India Kotak

securities Lid. It has an NBFC license from the Reserve Bank of India (RBI) and offers margin-

funding facility to the broking customers.

1.4 STATEMENT OF PROBLEM

The main problem of the study in that investors do not know when to invest and when to

sell the shares and also do not know about which shares is better performing. So to help them

investors we undertake the study with the help of technical tools to find which sector is best

performing in stock exchange.


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1.5 OBJECTIVE OF THE STUDY

1. To study in depth about the equity scrips price changes of five sectors.

2. To find out the impact of different moving average on each sector scrip.

3. To help an investor in deciding his/her entry and exit point.

4. To find out the equity performance of all BSE BANKEX, BSE IT, BSE CEMENT,BSE AUTOMOBILE, BSE OIL.

5. To find out the overall performance of BSE and NSE.

1.6 NEED FOR THE STUDY

The risk taking mentality among investors in stock market has grown in the last one andhalf decades. Investors have to analyze the market price fluctuations before investing in the

market. By this analysis only he can have a clear picture of the market and its fluctuations. Then

only he can decide his entry or exit timings and also the decisions regarding holding of a

particular security.

The risk that people are bearing is not a blind one but well calculated and forecasted. By

analyzing the price movements one can easily understand the trend but how long the particular

trend will continue remains a question. With the help of moving averages, this study aims at

enabling an investor who analyze the market to decide the short/medium term investments and

the timings also.

1.7 LIMITATIONS OF THE STUDY

This study is meant for investors who are investing for short term only.

The technical and fundamental analysis tools were used for the study.

The study is limited only to five sectors.

The constraint of time was always a major limitation that was accurately felt.


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1.8 RESEARCH METHODOLOGY

RESEARCH DESIGN

The researcher has used an analytical & Descriptive research design in this study.

Descriptive research includes surveys and fact finding enquiries of different kinds. The major

purpose of descriptive research is description of the state of affairs as it exists at present.

If your study aims to actually pre-planned hypotheses based on existing knowledge (or)

findings is called analytical research design. In this study the researcher has getting the data such

as scrip price movements like closing price, days high & days low prices, with the help of theabove data we can able to calculate moving average, performance measures, price volume

analysis etc.

METHOD OF DATA COLLECTION:

In case of data collection, secondary data have been used. These data which someone else

has already collected and which have already been passed through the statistical process. The

secondary data, which is obtained from the Kotak securities Ltd

1.9 ANALYTICAL TOOLS USED:

Moving Average

Price volume analysis

Market capitalization rates

Growth Analysis

standard deviation

Beta analysis

Performance analysis


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Sharp measures

Trey nor measures

1.9.1 MOVING AVERAGE:

The market indices do not rise or fall in straight line. The upward and downward

movements are interrupted by counter moves. The underlying trend can be studied by

smoothening of the data.

The word moving average means ahead to include the recent observation. If it is five

month moving average on the sixth month the body of data moves to include the sixth day

observation eliminating the first day observation. Closing price of the stock is used for

calculating the moving average.

Formula:

Price1+ p2+p3+ pns

Moving avg = -------------------------------------------

No. of days

The moving averages are used to study the movement of the market as well as the individualscrip price. The moving average indicates the underlying trend in the scrip. The period of

average determines the period of the trend that is being identified. For identifying short-term

trend 10 day to 30 day moving averages are used. In the case of medium term trend 50 day to

125 day are adopted. 200 day are adopted.

1.9.2 PRICE VOLUME ANALYSIS

Traders often rely on volume to confirm stock trading patterns before they commit to a

trade. Unless volume confirm a pattern or a breakout, it may be a false breakout that loss intraders who have not done sufficient homework. However, since short term volume can be

erratic, trend lines should can be drawn on volume charts to indicate the trend of volume for

conformations of trends and patterns.


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A sustained uptrend should have volume rising as the price is rising. If the volume is

decreasing as the price is rising, it indicates a weakening of the trend that could lead to a reversal

of trend.

When a stock breaks through a resistance level, it should breakout with volume well

above normal volume to confirm a breakout.

When a stock breaks down below a support level, it should break with volume well above

normal volume to confirm a breakout.

Formula:

Range = highest price lowest price

Percentage = range/lowest price * 100

1.9.3 MARKET CAPITALIZATION:

The market capitalization of the stock indicates the true value of the stock as the

outstanding number of shares is multiplied by the price. Price indicates the demand and growth

potential of the stock. The outstanding shares depend on the equity base. The scrip should be

among the top 100 companies listed by full market capitalization. The weight of each sensex

scrip based on free float should be at least 0.5% of the index. Market capitalization would be

averaged for last six months.

Formula:

Market capitalization = No of shares * prices of shares.

1.9.4. GROWTH ANALYSIS

Geometric Mean


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Geometric mean is defined as the Nth root of the product of N items or values. if there

are two items, we take square root; if there are three items, the cube root; and so on

Symbolically.

G.M =

Where X1, X2, X3, etc. Refer to the various items of the series.

Thus the geometric mean of 3 values 2, 3, 4, would be:

G.M = = = 2.885

When the number of items is three or more the task of multiplying the numbers and of

extracting the root becomes excessively difficult. To simplify calculations logarithms are used.

Geometric mean then is calculated as follows:

Formula:

log G.M =

(or)

G.M = Antilog

1.9.5 Standard Deviation


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The most commonly used measure of risk in finance is variance or its square root the

Standard Deviation. The variance and the standard deviation of a historical return series are

defined as follows:

Standard deviation (2) = [ (R-)2/n-1]Where 2 = Variance of returns

= Standard Deviation of return

R = Returns from the stock in period

= Arithmetic return

n = Number of periods

Since variance is expressed as squared returns, it is somewhat difficult to grasp. So its

square root, the Standard Deviation, is employed as an equivalent measure.

= (2) where = Standard Deviation1.9.6 Beta

A measure of an investment's volatility relative to a chosen benchmark. For stocks or

stock funds, the benchmark is usually the S & P 500. For bonds or bond funds, it is Treasury

bills. The beta of the benchmark is always 1.00. So a stock fund with a beta of 1.00 has

experienced up and down movements of roughly the same magnitude as the S & P 500.

Meanwhile, a fund with a beta of 1.25 is expected to do 25% better than the S & P in an up

market and 25% worse in a down market.

Generally speaking, the higher the beta, the more risky the investment. But without a

high R-squared, a beta statistic can be meaningless. R-squared determines how much an

investment's return is correlated to its benchmark.

= n xy- (x) (y)/n x2-(x) 2


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1.9.7. PERFORMANCE MEASURES:

1. The Sharpe Measure

William Sharp developed this model. The model is named after his name, Sharp Ratio. It

is a ratio of returns generated by the funds over the above risk free rate of return and the total risk

associated with it. According to Sharpe, it is the total risk of the fund that the investors are

concerned about. So, the model evaluates funds on the basis of reward per unit to total risk.

Sharp Measures = Rp - Rf /pWhere pis standard deviation of the fund

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a

fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.

2. The Trey nor Measure

Jack Trey nor developed this mode. The model evaluates funds based on Treynor's Index.

This index is a ratio of return generated by the fund over and above risk free rate of return

(generally taken to be the return on securities backed by the government, as there is no credit risk

associated), during a given period and systematic risk association with it (beta).

Trey nor Measures = Rp - Rf /When Rp represents return on fund, Rf is risk free rate of return and is beta of the fund,

All risk-averse investors would like to maximize this value, while a high and positive Treynor's

Index shows a superior risk adjusted performance of a fund, a low and negative Treynor's Index

is an indication of unfavorable performance.


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CHAPTER 2

2.1 REVIEW OF LITERATURE:

Review of literature helps the investigator to clarify the problems that he has undertaken.It helps in finding out the means through which the researcher can carry out the research. For this

purpose, the abstracting and indexing journals, published or unpublished data, academic journals,

reports etc. must be tapped depending on the nature of the problems.

1). A number of studies have been carried out regarding the effect of introduction of

Derivatives on the spot market volatility across the country. One school of thought argues that

Future market increases the spot market volatility and destabilizes the market. Another school

Of thought future trading reduces the spot market volatility and stabilizes the spot market.

Pratap Chandra Pati and K. Kiran Kumar, Maturity and Volume effect on Volatility,

ICFAI Journal, OCT.2007.

2). The emergence of market for derivative products, most notably forward, futures and

options, can be traced back to the willingness of risk adverse economic agents to guard

themselves against uncertainties arising out of fluctuations in asset prices. By their very nature,

the financial markets are marked by a very high degree of volatility. Through the use of

derivative products, it is possible to partially or fully transfer price risk by locking in asset prices.

As instruments of risk management, these dont influence the fluctuations in the underlying asset

prices. However, by locking in asset prices on the profitability and cash flow situation of risk

averse investors.Effect of Derivative Market in Stock Trading, Peter Markus, ICFAI

Journal, June2009.

3). Volatility is fundamental, in the context of financial markets, to the paradigm of the

tradeoff between risk and expected return. This paradigm is the foundation upon which a lot of

modern finance theories, such as portfolio theory, derivative asset pricing, capital structure

theory and valuation theory as based. The study of the behavior of the volatility of futurescontracts prices near the maturity dates is very crucial because it has important implication for

participant involved in the future market. Understanding volatility is central to derivative pricing

and to risk management. Volatility is also fundamental to the pricing of equities and derivative

equities Such as future and option. As the price of the underlying asset change future price also

Change.


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4). According to Jing Liu, Vice President, Credit Risk Management, Citiba Using

daily data from May 2000 to January 2004, this study examines the risk, return, security

selection and market timing performance of China. Security investment funds (SIFs), in

comparison with the performance of SIFs inthe U.S. Our results indicate that China investment

funds show superiormarketing timing performance while U.S. fund managers display stronger

security selection ability. These results imply that the potential synergy for Sino-U.S. joint

venture investment funds could be tremendous. Additional analysis of the trading volume of

closed-end funds in China illustrates that investors. Interests in SIFsare strongly and positively

related to fund performance. Results also indicate that Chinese investors favor professionally

managed funds more than directinvestment in stocks during negative market conditions.

5). According to Market Timing in Regressions and Reality Kenneth L. Fisher, FisherInvestments, Inc., Meir Stat man, Santa Clara University We compare price-to-earnings ratios

and dividend yields, which are indirect measures of sentiment, with the bullish sentiment index,

which is a direct measure. We find that the sentiment index does better as a market timing tool

than P/E ratios and dividend yields, but none are very reliable. We do not argue that market

timing is impossible. Rather, we observe that stock prices reflect both sentiment and value, both

of which are difficult to measure and neither of which is perfectly known in foresight. Successful

market timing requires insights into future sentiment and value, insights beyond these that are

reflected in widely available measures.

6). According to the Comparative Simulation Study of Fund Performance Measures

GAO Zhangpeng and Shahidur RAHMAN This study critically reviews current fund

performance measures. Theperformance measure derived from the return-based style analysis by

Sharpe(1992) is introduced and compared with other regression-based measures. Acomparative

simulation is set up to test the robustness, accuracy, and efficiency ofthe measures. The evidence

shows that the RBSA measure is superior to other measures. The performance of the simple

Jensen measures is sensitive to fund types. More complicated measures, like market-timing

measures and multifactor measures show spurious market timing and wrong fund type

information.


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7). According to the Comparative Simulation Study of Fund Performance Measures

GAO Zhangpeng and Shahidur RAHMAN This study critically reviews current fund

performance measures. The performance measure derived from the return-based style analysis by

Sharpe (1992) is introduced and compared with other regression-based measures. A comparative

simulation is set up to test the robustness, accuracy, and efficiency of the measures. The evidence

shows that the RBSA measure is superior to other measures. The performance of the simple

Jensen measures is sensitive to fund types. More complicated measures, like market-timing

measures and multifactor measures show spurious market timing and wrong fund type

information.

8). According to Mr.Hemant Rustagi, CEO, Wise invest Advisors Pvt Ltd, with equity

Markets displaying significant volatility in recent days, a natural outcome was for debt funds to

come back into focus. The main reason behind this phenomenon was that the comfort thatinvestors had with investing in equity, even for short periods of time, started wearing out due to

emerging volatility characteristics. On the other hand, interest rates and yields have been rising

for a while now. Increasingly, risk adjusted returns from fixed income products were getting

Attractive.

9). According to Mr.Sanjay Matai, an investment advisor and promoter of

Wealtharchitects.in, investing in the new fund offers of close-ended equity funds does not make

a very prudent investment decision. This is so because of:

Market valuations are not cheap and hence one can expect high volatility, even though

the long term Indian growth story may still be attractive. In close-ended funds it is not possible to

do SIP, which is a very important investment strategy today to reduce the Volatility risk.

If need be, you cannot easily exit. Either such close-ended funds trade at a discount if

Listed on the stock exchange. Or if AMCs offer exit through repurchase, it is available Only on

few select days in a year and at a high exit load. In NFOs one ends up paying a Higher cost vis-

-vis investing in a 3-5 year old similar fund.

Further in NFOs, one doesnt have the benefit of assessing the past track record. While,

This is no guarantee of future performance; it has generally been observed that poor performing

Funds usually turn out poor performance in future too. So at least one knows which funds are not

worth investing.


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Fund managers have done a great job of managing open-ended funds, despite the

Uncertainty of inflows and outflows. So the logic that a fund manager gets a chance to Take

a long-term view and give better performance may not always be true.

10). According to Mr.Amar Pandit, a practicing certified Financial Planner, mutual

Fund houses through agents, distributors, advisors and advertisements in personal finance

magazines, billboards and television tend to do a rock show of their past performance. Its sad to

know that the core focus of mutual fund advertising is past performance and yet its the only

thing that these funds cannot sell and investors cannot buy. Can the fund sell you answer is

NO. So what does a fund mean when it suggests a 40% return p.a of the last 5 years for the

next 5 years. Does it mean that the next 5 years are going to be similar or even closer to this?

Though we all know the answer to this, somewhere these past figures influence our decision and

help us focus only on the returns part of the equation. Now ask the same person about his risk

tolerance or specifically How much short term loss you can tolerate to achieve your objectives

and the answer can be from 0% to 10% depending on whom you are talking to People cannot

digest the fact that there can be short term loss when investing in equity but in reality it can be as

high as 35%-38% as we have all witnessed in May 2006 more as amply demonstrated in 2000

technology meltdown. You will have read it several times that time in the market is more

important than timing the market. In short run, equities can go up and down but in the long run

and in an era of growth and opportunity, equity will go northwards. Therefore it is veryimportant to take stock of your investment time horizon. It is one of the most important variables

that will help determine how much money you should allocate to equity.


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CHAPTER 3

3. ANALYSIS AND INTERPRETATIONTABLE 3.1.1

NOVEMBER MONTH MOVING AVERAGE ANALYSIS

S.No Name Of The Company NovemberOpen High Low Close

1. AXIS BANK 1477.09 1492.28 1442.75 1464.522. HDCF BANK 2245.05 2382.00 2317.95 2348.193. IOB BANK 163.01 165.58 156.36 160.354. SBI BANK 3126.74 3169.20 3061.17 3114.875. ASHOK LEYLAND 76.35 77.43 73.44 75.866. BAJAJ AUTO 1588.68 1610.90 1564.79 1588.54

7. HERO HONDA MOTORS 1879.35 1907.10 1856.72 1882.198. TATA MOTORS 1229.15 1248.38 1199.20 1223.049. ACC CEMENT 1051.35 1066.10 1033.01 1049.82

10. AMBUJA CEMENT 149.62 152.63 146.32 149.5211. BIRLA LTD 401.57 411.15 389.20 399.5212. ULTRATECH CEMENT 1119.45 1135.41 1102.97 1118.6713 HCL 399.13 405.33 392.56 399.3014. INSYS TECHNOLOGIES 3030.21 3063.45 3000.59 3031.6415. SATYAM COMPUTER SERVICES 76.96 78.36 74.79 76.1016. TCS LTD 1055.83 1069.86 1042.89 1054.1917. BPCL 733.08 740.78 715.09 727.0218. HPCL 463.38 467.43 448.56 456.0819 IOC 396.54 400.09 386.21 391.1920. OIL INDIA 1419.32 1439.00 1398.21 1416.06

Source: Secondary Data

INTERPRETATION:

From the above table inferred that the SBI bank has (3169.20) high scrip price than AXIS

Bank, compare to HDFC bank & IOB bank. INSYS TECHNOLOGIES has (3063.45) high scrip

price than TCS Ltd compare to HCL & SATYAM COMPUTER SERVICES. And HERO

HONDA MOTORS has high (1907.10) scrip price than BAJAJ AUTO compare to TATA

MOTORS & ASHOK LEYLAND. OIL INDIA has (1439.00) high scrip price than BPCL

compare to IOC & HPCL. ULTRATECH CEMENT has high (1135.41) scrip price than ACC

CEMENT compare to BIRLA LTD & AMBUJA CEMENT


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. On the whole SBI bank has the highest scrip price compared to all five sectors. So it is

the time to sell their scrip for earning good profit

FIGURE: 3.1.1

TABLE NO: 3.1.2


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DECEMBER MONTH MOVING AVERAGE ANALYSIS

S.No Name Of The Company DecemberOpen High Low Close

1. AXIS BANK 1333.14 1350.37 1305.22 1326.522. HDCF BANK 2266.93 2293.12 2233.87 2267.693. IOB BANK 144.71 147.17 141.21 144.094. SBI BANK 2820.98 2852.86 2776.50 2808.955. ASHOK LEYLAND 67.84 68.65 66.03 67.196. BAJAJ AUTO 1511.00 1523.78 1486.17 1504.977. HERO HONDA MOTORS 1850.1 1889.03 1810.55 1852.758. TATA MOTORS 1310.10 1333.23 1288.52 1313.769. ACC CEMENT 1044.1 1064.2 1033.1 1049.20

10. AMBUJA CEMENT 139.55 142.44 137.15 139.72

11. BIRLA LTD 353.59 360.57 344.79 351.9412. ULTRATECH CEMENT 1079.04 1098.00 1062.86 1080.5213 HCL 438.94 445.59 434.57 442.5514. INSYS TECHNOLOGIES 3235.77 3272.33 3218.84 3255.8715. SATYAM COMPUTER SERVICES 65.01 66.36 63.80 64.8216. TCS LTD 1115.59 1130.27 1104.82 1119.5917. BPCL 680.97 690.79 669.52 678.4018. HPCL 409.45 414.80 400.34 406.4519 IOC 367.45 374.40 359.93 365.6720. OIL INDIA 1401.41 1420.28 1384.25 1398.29


INTERPRETATION:

From the above table inferred that out of four IT sectors the INSYS TECHNOLOGIES

has high scrip price (3272.33).In the bank sectors the SBI bank has (2852.86) high scrip price for

month of December. And HERO HONDA MOTORS has high scrip price (1889.03). OIL INDIA

has (1420.28) high scrip price than BPCL compare to HPCL & IOC. ULTRATECH Cement has

high (1098.00) scrip price than ACC Cement compare to BIRLA LTD & AMBUJA Cement

. We can understand that the moving average for SBI is sloping down fastly the month of

December compare to November month. So it is time to purchase the shares instead of selling

TABLE NO: 3.1.2


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TABLE NO: 3.1.3


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JANUARY MONTH MOVING AVERAGE ANALYSIS

S.No Name Of The Company JanuaryOpen High Low Close

1. AXIS BANK 1293.45 1316.2 1268.31 1286.262. HDCF BANK 2178.90 2204.90 2129.07 2159.403. IOB BANK 132.51 135.48 129.2 131.974. SBI BANK 2631.11 2665.18 2584.09 2617.945. ASHOK LEYLAND 61.17 62.64 59.19 60.876. BAJAJ AUTO 1329.82 1345.12 1290.85 1310.297. HERO HONDA MOTORS 1825.89 1846.47 1785.54 1809.738. TATA MOTORS 1215.9 1229.30 1186.19 1205.679. ACC CEMENT 1027.7 1040.14 1009.3 1023.1

10. AMBUJA CEMENT 131.66 133.81 128.78 130.7511.

BIRLA LTD339.38 347.21 331.60 338.72

12. ULTRATECH CEMENT 1029.61 1052.13 1008.50 1023.6913 HCL 482.29 492.17 475.66 483.6314. INSYS TECHNOLOGIES 3311.59 3352.74 3273.52 3308.2315. SATYAM COMPUTER SERVICES 67.71 68.74 66.16 67.0616. TCS LTD 1165.72 1182.25 1149.28 1164.0317. BPCL 615.97 624.48 602.71 612.3718. HPCL 374.9 381.39 367.18 372.6319 IOC 328.31 336.15 323.13 329.4820. OIL INDIA 1307.72 1355.62 1291.92 1316.58


INTERPRETATION:

From the above table inferred that the INSYS TECHNOLOGIES has (3352.74) highest

price in the month of January. The bank sector has highest price SBI is more than other four

bank industries. And HERO HONDA MOTORS has high (1846.47) scrip price than Bajaj Auto

compare to Tata Motors & Ashok Leyland. OIL INDIA has (1355.62) high scrip price more than

other four oil sectors. UltraTech Cement has high scrip price than ACC Cement compare to Birla

Ltd & Ambuja Cement

A whole INSYS TECHNOLOGIES has the highest scrip price compared to all five

sectors. So it is the time to sell their scrip for earning good profit

TABLE NO: 3.1.3


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TABLE NO: 3.1.4

FEBRUARY MONTH MOVING AVERAGE ANALYSIS


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S.No Name Of The Company February

Open High Low Close

1. Axis Bank 1243.26 1268.79 1220.9 1241.882. HDCF BANK 2079.48 2111.88 2047.28 2077.703. IOB BANK 128.44 131.61 125.12 127.664. SBI BANK 2656.5 2695.24 2615.11 2652.045. ASHOK LEYLAND 52.21 53.29 50.47 49.276. BAJAJ AUTO 1274.81 1305.76 1254.21 1273.067. HERO HONDA MOTORS 1507.73 1539.80 1468.16 1497.288. TATA MOTORS 1150.63 1175.14 1120.29 1144.899. ACC CEMENT 985.94 1002.4 970.46 986.17

10. AMBUJA CEMENT 122.19 124.23 119.23 121.4911. BIRLA LTD 314.85 322.13 307.80 313.20

12. ULTRATECH CEMENT 960.17 976.36 942.32 956.7313 HCL 470.75 478.25 460 468.8614. INSYS TECHNOLOGIES 3087.32 3124.87 3052.92 3083.915. SATYAM COMPUTER SERVICES 61.22 62.71 59.71 60.9316. TCS LTD 1125.21 1142.73 1103.13 1122.0217. BPCL 586.23 599.58 572.57 583.9418. HPCL 340.22 345.51 332.60 338.0519 IOC 318.48 323.67 312.01 316.6520. OIL INDIA 1279.65 1295.29 1257.92 1275.69


INTERPRETATION:From the above table inferred that the SBI Bank has highest price in the month of

February. The Automobile sector has highest price HERO HONDA MOTORS is more than

other three Automobile industries.

A Cement sector has highest price the ACC cement compared to other three sectors, OIL

India highest price compared to other three oil sectors. And IT sector has fluctuating trend. On

the whole the INFOSYS is highest price. So it is better the selling of INFOSYS scrip price.

TABLE NO: 3.1.4


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TABLE NO: 3.1.5

MARCH MONTH MOVING AVERAGE ANALYSIS


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S.No Name Of The Company March

Open High Low Close

1. Axis Bank 1311.88 1335.37 1297.2 1319.882. HDCF BANK 2198.14 2234.65 2182.13 2211.913. IOB BANK 142.71 145.27 140.95 143.224. SBI BANK 2656.09 2687.97 2629.0 2659.245. ASHOK LEYLAND 53.19 54.60 54.60 53.686. BAJAJ AUTO 1374.32 1393.61 1360.83 1379.857. HERO HONDA MOTORS 1506.30 1532.16 1488.56 1510.338. TATA MOTORS 1162.76 1180.32 1148.44 1168.779. ACC CEMENT 1113.4 1026.7 1006.16 1018.22

10. AMBUJA CEMENT 129.63 132.95 128.26 131.2811. BIRLA LTD 311.38 320..08 305.34 313.3512. ULTRATECH CEMENT 1019.02 1043.21 1011.26 1032.86

13 HCL 459.49 467.67 454.5 462.5814. INSYS TECHNOLOGIES 3047.44 3087.38 3026,13 3063.6615. SATYAM COMPUTER SERVICES 65.88 67.00 64.76 65.8916. TCS LTD 1107.98 1123.75 1094.86 1111.0717. BPCL 571.26 582.75 563.92 574.6618. HPCL 332.03 338.02 327.32 333.8319 IOC 308.32 313.51 305.24 310.6920. OIL INDIA 1383.5 1287.53 1248.60 1269.87


INTERPRETATION:

From the above table shows that SBI bank has been highest price (2687.97) and HDFC

bank also increased in the month of March. And the INFOSYS tech has more fluctuation in the

moving average. So both buying and selling of shares is good for investors. Automobile sector

has normal price but the HERO HONDA MOTORS has highest price to more than other four

Automobile industries.

OIL INDIA the oil sector has highest price of BPCL compare to other HPCL & IOC.

SBI has highest price of the other four industries.

TABLE NO: 3.1.5


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3.2. PRICE VOLUME ANALYSIS

TABLE NO: 3.2.1. AXIS BANK


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Month Price of Highestvalue

Price ofLowest value

Range % of theprice

November 2010 1584 1297 287 22.12December 2010 1461 1229.7 231.3 18.80

January 2011 1376.6 1195 181.6 15.19

February 2011 1348.85 1150 198.85 17.29

March 2011 1443.55 1233.45 210.1 17.03Source: Secondary Data

TABLE NO: 3.2.1

INTERPRETATION:

From the above table it is inferred that bank has result in the maximum percentage of

22.12% in the month of November, and the minimum percentage of 15.19% in the month of

January.

HDFC BANK

TABLE NO: 3.2.2


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Range % of theprice

November 2010 2419.8 2258.5 161.3 7.14December 2010 2425 2150 275 1.27

January 2011 2399.65 1996.2 403.45 20.21

February 2011 2243.1 1981.4 261.7 13.20

March 2011 2395.9 2059 336.9 16.36


TABLE NO: 3.2.2

INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of

20.21% in the month of January, and the minimum percentage of 1.27% in the month of

December.

IOB BANK

TABLE NO: 3.2.3


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Range % of theprice

November 2010 180 131.2 48.8 37.19

December 2010 159.85 126.65 33.2 26.21

January 2011 150.2 121 29.2 24.13

February 2011 154.2 116.4 37.8 32.47

March 2011 152.05 134 18.05 13.47

Source: Secondary DataTABLE NO: 3.2.3

INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of

37.19% in the month ofNovember, and the minimum percentage of 13.47% in the month ofMarch.

SBI BANK

TABLE NO: 3.2.4


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Range % of theprice

November 2010 3515 2775 740 26.66December 2010 3173.6 2655.5 518.1 19.51

January 2011 2852 2463.1 388.9 15.58

February 2011 2814.75 2476.3 388.45 15.68

March 2011 2888.5 2520.45 368.05 14.60Source: Secondary Data

TABLE NO: 3.2.4

INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of 26.66% in the

month of November, and the minimum percentage of 14.60% in the month of March.

HCL

TABLE NO: 3.2.5


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Range % of theprice

November 2010 416.95 367.7 49.25 13.39December 2010 460.75 406.75 54 13.27

January 2011 517.15 451.25 65.9 14.60

February 2011 503.45 425.5 77.95 18.31

March 2011 485.6 436.7 48.9 11.19


INTERPRETATION:


month of February, and the minimum percentage of 11.19% in the month of March.

INSYS TECHNOLOGIES

TABLE NO: 3.2.6


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Range % of theprice

November 2010 3111 2940.25 170.75 5.80December 2010 3454 3032 422 13.91

January 2011 3499 3086.2 412.8 13.37

February 2011 3177.8 2966 211.8 7.14

March 2011 3265 2904.35 360.65 12.41


INTERPRETATION:


month of December, and the minimum percentage of 5.80% in the month of November.

SATYAM COMPUTER SERVICES

TABLE NO: 3.2.7


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Range % of theprice

November 2010 90.7 59.55 31.15 52.30December 2010 70.8 59 11.8 20

January 2011 73.9 59.9 14 13.37

February 2011 66.85 54.2 12.65 23.33

March 2011 70.5 61.6 8.9 14.44


INTERPRETATION:


month of November, and the minimum percentage of 13.37 % in the month of January.

TCS Ltd

TABLE NO: 3.2.8


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Price of Lowestvalue

Range % of theprice

November 2010 1108 998.95 109.05 10.91

December 2010 1180 1048.4 131.6 12.55

January 2011 1220 1087.8 132.2 12.15

February 2011 1198.9 1055.9 143 13.54

March 2011 1198 1057.25 140.75 13.31


INTERPRETATION:


month of February, and the minimum percentage of 10.91% in the month of November.

ASHOK LEYLAND

TABLE NO: 3.2.9


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Range % of theprice

November 2010 81.9 64.75 17.75 26.48December 2010 75.25 61.1 14.15 23.15

January 2011 68.75 52.3 16.45 31.45

February 2011 59.9 45.05 14.85 32.96

March 2011 57.9 46.5 11.4 24.51


INTERPRETATION:


month of February, and the minimum percentage of 23.15% in the month of December

BAJAJ AUTO

TABLE NO: 3.2.10


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Price of Lowestvalue

Range % of theprice

November 2010 1665 1513.35 151.65 10.02

December 2010 1623.9 1430 193.9 13.55

January 2011 1564.65 1165.65 399 34.22

February 2011 1558.15 1190 368.15 30.93

March 2011 1474 1276.7 197.3 15.45


TABLE NO: 3.2.10

INTERPRETATION:


month of January, and the minimum percentage of 10.02% in the month of November.

HERO HONDA MOTORS

TABLE NO: 3.2.11


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Range % of theprice

November 2010 2061.9 1795 266.9 14.86

December 2010 2019 1559 460 29.50

January 2011 2020 1650 370 22.42

February 2011 1668 1375.75 292.25 21.24

March 2011 1619 1413.8 205.2 14.51


INTERPRETATION:


month of December, and the minimum percentage of 14.51% in the month of Masrch.

TATA MOTORS

TABLE NO: 3.2.12


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Range % of theprice

November 2010 1348 1138 210 18.45

December 2010 1382 1212 170 14.02

January 2011 1335 1112.1 222.9 20.04

February 2011 1257.9 1038.65 219.25 21.10

March 2011 1260.9 1097.15 163.75 14.92


INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of 21.10% in themonth of February, and the minimum percentage of 14.02% in the month of December.

ACC CEMENT

TABLE NO: 3.2.13


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Range % of theprice

November 2010 1134.4 968.05 166.35 17.18

December 2010 1098.85 970.35 128.5 13.24

January 2011 1088 965.7 122.3 12.66

February 2011 1028 922.2 105.8 11.47

March 2011 1099 974.2 124.8 12.81


INTERPRETATION:From the above table decides that bank has resulted in the maximum percentage of 17.18% in the

month of November, and the minimum percentage of 11.47% in the month of February.

AMBUJA CEMENT

TABLE NO: 3.2.14


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Range % of theprice


January 2011 146.9 123.5 23.4 18.94

February 2011 129.95 111.6 18.35 16.44

March 2011 151.9 118.05 33.85 28.67


INTERPRETATION:


month of March, and the minimum percentage of 16.44% in the month of February.

BIRLA LTD

TABLE NO: 3.2.15


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Range % of theprice


January 2011 370 302 68 22.51

February 2011 347 293.15 53.85 18.36

March 2011 346 281.85 64.15 22.76



month of December, and the minimum percentage of 18.36% in the month of February.

ULTRATECH CEMENT

TABLE NO: 3.2.16


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Range % of theprice

November 2010 1175 1070 105 9.81December 2010 1189 1036 153 14.76

January 2011 1197.45 968.1 229.35 23.69

February 2011 1033.65 883.4 150.25 17.00

March 2011 1147.5 920.3 227.2 24.68



month of March, and the minimum percentage of 9.81% in the month of November.

Bharat Petroleum Corporation Ltd (BPCL)

TABLE NO: 3.2.17
http://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Bharat_Petroleum


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Range % of theprice

November 2010 785 149.15 635.85 426.31

December 2010 721.9 650.65 71.25 10.95

January 2011 669.9 565.15 104.75 18.53

February 2011 644.4 529.35 115.05 21.73

March 2011 623.7 538.1 85.6 15.90


INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of 426.31% in

the month of November, and the minimum percentage of 10.95% in the month of December

Hindustan Petroleum Corporation Ltd (HPCL)

TABLE NO: 3.2.18
http://en.wikipedia.org/wiki/Hindustan_Petroleumhttp://en.wikipedia.org/wiki/Hindustan_Petroleum


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Range % of theprice

November 2010 504.8 390.1 114.7 29.40

December 2010 437.15 375.6 61.55 16.38

January 2011 403 347.8 55.2 15.87

February 2011 363.8 303.85 59.95 19.73

March 2011 365 308.25 56.75 18.41


INTERPRETATION:


month of November, and the minimum percentage of 15.87% in the month of January.

Indian Oil Corporation (IOC)

TABLE NO: 3.2.19
http://en.wikipedia.org/wiki/Indian_Oilhttp://en.wikipedia.org/wiki/Indian_Oil


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Range % of theprice

November 2010 427.9 326.5 101.4 31.05

December 2010 407.2 335.15 72.05 20.28

January 2011 355.45 301.25 63.35 21.69

February 2011 337.5 290.1 47.4 16.33

March 2011 342 295 47 15.93


INTERPRETATION:

From the above table decides that bank has resulted in the maximum percentage of 31.05% in themonth of November, and the minimum percentage of 15.93% in the month of March.

Oil India

TABLE NO: 3.2.20
http://en.wikipedia.org/wiki/Oil_Indiahttp://en.wikipedia.org/wiki/Oil_India


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Range % of theprice

November 2010 1477 1335 142 10.63

December 2010 1474 1335 139 10.41

January 2011 1519.95 1050 469.95 44.75

February 2011 1345 1205 140 11.61

March 2011 1340 1176.6 163.4 13.88


INTERPRETATION:


month of January, and the minimum percentage of 10.41% in the month of December.

3.3MARKET CAPITALIZATION RATES

TABLE NO: 3.3.1


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INTERPRETATION:

From the above table shows that the market capitalization rates of IT sector has the

highest rate of (220715.81) TCS Ltd. And market capitalization of Bank sector has been SBI

Bank rates (168252.51) are higher than other four companies. IOC rate of Rs. 83436.59 has been

highest rates of market capitalization.

The market capitalization rates of Automobile sector has the highest rate of (76663.29)

Tata Motors. And highest market capitalization of cement sector rate of (28681.2) Ultratech

S.no Company name Market capitalizationrates

1. Axis Bank 51154.132. HDCF BANK 104724.63

3. IOB BANK 9581.334. SBI BANK 168252.515. ASHOK LEYLAND 6585.176. BAJAJ AUTO 38695.607. HERO HONDA MOTORS 35853.898. TATA MOTORS 76663.299. ACC CEMENT 18740.44

10. AMBUJA CEMENT 20802.7711. BIRLA LTD 2810.712. ULTRATECH CEMENT 28681.213 HCL 34666.9614. INSYS TECHNOLOGIES 165358.5215. SATYAM COMPUTER SERVICES 2291.7216. TCS LTD 220715.8117. BPCL 23831.0518. HPCL 13025.3019 IOC 83436.5920. OIL INDIA 33186.30


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Cement. On the whole highest market capitalization rates are TCS Ltd. Compare to five sectors

the IT SECTOR has highest market capitalization rates.

FIGURE: 3.3.1

3.4. GROWTH ANALYSIS

3.4.1. INTERNAL ANALYSIS

3.4.1.1. Growth Rate of the AXIS BANK, HDFC BANK, IOB BANK and the SBI BANKTABLE NO: 3.4.1.1

AXISBANK

Log X1HDFCBANK

Log X2 IOBBANK

Log X3 SBIBANK

Log X4

1.06 0.025 0.88 -0.055 2.18 0.338 3.71 0.569


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1.05 0.021 0.89 -0.050 2.20 0.342 3.73 0.571

1.08 0.033 0.92 -0.036 .2.08 0.318 3.62 0.558

1.16 0.064 0.98 -8.773 2.11 0.324 3.4 0.531

1.13 0.053 0.96 -0.017 2.15 0.332 3.46 0.539

0.196 -8.931 1.654 2.768


Geometric Mean = Antilog (log x / n)

AXIS BANK = Antilog (0.196/5) = 0.0392

HDFC BANK = Antilog (-8.931/5) = -1.7862

IOB BANK = Antilog (1.654/5) =0.3308

SBI BANK = Antilog (2.768/5) =0.5536

INTERPRETATION:

The above table shows that the growth of SBI bank is (0.5536) against the growth of IOB

bank is (0.3308).and AXIS bank also increase the growth value is(0.0392).HDFC bank was

decrease the growth. There is a phenomenal growth in SBI bank.

TABLE NO: 3.4.1.2

3.4.1.2 Growth Rate of the HCL, INSYS TECHNOLOGIES, SATYAM COMPUTERS,and the TCS LTD

HCL Log X1INSYS

Technologies Log X2SATYAMComputers

Log X3 TCS Ltd Log X4

2.13 4.536 3.82 14.592 1.28 1.638 1.35 1.822


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2.27 5.152 3.75 14.062 1.20 1.44 1.25 1.562

2.50 6.25 3.63 13.176 1.09 1.188 1.22 1.488

2.55 6.502 3.38 11.424 1.16 1.345 1.24 1.537

2.61 6.812 3.45 11.902 1.13 1.276 1.27 1.612

29.252 65.156 6.887 8.021



HCL = Antilog (29.252/5) = 5.8504

INSYS Technologies = Antilog (65.156/5) = 13.0312

SATYAM Computers = Antilog (6.887/5) =1.3774

TCS Ltd = Antilog (8.021/5) =1.6042

INTERPRETATION:

The above table inferred that the growth of INSYS Technologies is 13.0312 against the

growth of HCL of 5.8504.And and TCS Ltd also increase the growth value is 1.6042. Against the

growth of SATYAM Computers There is a phenomenal growth in INSYS Technologies.

TABLE NO: 3.4.1.3

3.4.1.3. Growth Rate of the ASHOK LEYLAND, BAJAI AUTO, HERO HONDAMOTORS and the TATA MOTORS

ASHOKLEYLAND

Log X1BAJAJAUTO

Log X2

HEROHONDAMOTORS

Log X3 TATAMOTORS

Log X4


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1.08 1.166 4.20 17.64 5.87 34.456 0.46 0.211

1.171.368 4.53 20.520 4.42 19.536 0.53 0.280

1.23 1.512 3.71 13.764 4.71 22.184 0.42 0.176

1.25 1.562 3.86 14.899 5.01 25.100 0.44 0.193

1.30 1.69 3.55 12.602 4.72 22.278 0.45 0.202

7.298 79.425 123.554 1.062



Ashok Leyland = Antilog (7.298/5) = 1.4596

BAJAJ Auto = Antilog (79.425/5) = 15.885

HERO HONDA Motors = Antilog (123.554/5) = 24.710

TATA Motors = Antilog (1.062/5) = 0.2124

INTERPRETATION:

The above table shows that the growth of Hero Honda motors is (24.710) against

the growth of BAJAI Auto is (15.885).and Ashok Leyland also increase the growth value is

(1.4596).TATA Motors the growth (0.2124). There is a phenomenal growth in HERO HONDA

motors.

TABLE NO: 3.4.1.4

3.4.1.4 Growth Rate of the ACC Cement, AMBUJA Cement, BIRLA Ltd and theUltraTech Cement

ACCCement

Log X1AMBUJACement

Log X2 BIRLALtd

Log X3 UltraTechCement

Log X4


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0.27 0.072 0.43 0.184 2.12 4.494 2.11 4.452

0.12 0.014 0.36 0.129 2.16 4.665 2.13 4.536

0.18 0.032 0.17 0.028 2.20 4.84 2.15 4.622

0.25 0.062 1.17 1.368 2.23 4.972 2.20 4.84

0.30 0.09 1.25 1.562 2.25 5.062 2.23 4.972

0.27 3.271 24.033 23.422



ACC Cement = Antilog (0.27/5) = 0.054

AMBUJA Cement = Antilog (3.271/5) = 0.6542

BIRLA Ltd = Antilog (24.033/5) = 4.8066

UltraTech Cement = Antilog (23.422/5) = 4.6844

INTERPRETATION:

The above table inferred that the growth of BIRLA Ltd is (4.8066) against the growth of

UltraTech Cement of (4.6844).And and AMBUJA Cement also increase the growth value is

(0.6542). Against the growth of ACC Cement There is a phenomenal growth in BIRLA Ltd.

TABLE NO: 3.4.1.53.4.1.5.Growth Rate of the BPCL, HPCL, IOC, and the OIL INDIA

BPCL Log X1 HPCL Log X2 IOC Log X3 OIL INDIA Log X4


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1.97 3.880 3.21 10.304 0.44 0.193 1.97 3.880

1.983.920 3.25 10.562 0.45 0.202 1.98 3.920

2.03 4.120 3.17 10.048 0.50 0.25 2.01 4.040

2.15 4.622 3.19 10.176 0.56 0.313 2.07 4.284

2.23 4.972 3.20 10.24 0.59 0.348 2.10 4.41

21.514 51.33 1.306 20.534



BPCL = Antilog (21.514/5) = 4.3028

HPCL = Antilog (51.33/5) = 10.266

IOC = Antilog (1.306/5) = 0.2612

OIL INDIA = Antilog (20.534/5) = 4.1068

INTERPRETATION:

The above table shows that the growth of HPCL is (10.266) against the growth of

BPCL is (4.3028).and OIL INDIA also increase the growth value is (4.1068). IOC the growth

(0.2612). There is a phenomenal growth in HPCL.

3.4.2. SECTOR ANALYSIS

TABLE NO: 3.4.2.13.4.2.1. Growth Rate of the BSE BANKEX and the BSE IT

BSE BANKEX Log X1 BSE IT Log X2

21.97 1.341 23.03 1.362


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20.89 1.319 22.93 1.360

20.09 1.302 22 1.342

18.11 1.257 19.67 1.293

18.38 1.264 20.04 1.3016.483 6.658



BSE BANKEX = Antilog (6.483/5) = 1.296

BSE IT = Antilog (6.658/5) = 1.331

INTERPRETATION:

The above table inferred that the growth of BSE IT is 1.331 against the growth of BSE

BANKEX of 1.296 there is a phenomenal growth in BSE IT sector.

TABLE NO: 3.4.2.2

3.4.2.2. Growth Rate of the BSE BANKEX and the BSE AUTO

BSE BANKEX Log X1 BSE AUTO Log X2

21.97 1.341 18.76 1.273

20.89 1.319 17.3 1.238

20.09 1.302 16.09 1.206

18.11 1.257 14.97 1.175

18.38 1.264 15.58 1.192

6.483 6.084




BSE AUTO = Antilog (6.084/5) = 1.216

INTERPRETATION:


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The above table shows that the growth of BSE BANKER is 1.296 against the growth of

BSE AUTO of 1.216. There is a phenomenal growth in BSE BANKER.

TABLE NO: 3.4.2.3

3.4.2.3. Growth Rate of the BSE BANKEX and the BSE CEMENT

BSE BANKEX Log X1 BSE CEMENT Log X2

21.97 1.341 1.06 0.025

20.89 1.319 1.05 0.021

20.09 1.302 1.08 0.033

18.11 1.257 1.16 0.064

18.38 1.264 1.13 0.053

6.483 0.196




BSE CEMENT = Antilog (0.196/5) =0.039

INTERPRETATION:

The above table shows that the growth of BSE BANKEX is 1.296 against the growth of

BSE CEMENT of 0.039. There is a phenomenal growth in BSE BANKEX.

TABLE NO: 3.4.2.4

3.4.2.4. Growth Rate of the BSE BANKEX and the BSE OIL

BSE BANKEX Log X1 BSE OIL Log X2

21.97 1.341 3.71 0.569


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20.89 1.319 3.73 0.571

20.09 1.302 3.62 0.558

18.11 1.257 3.4 0.531

18.38 1.264 3.46 0.5396.483 2.768




BSE OIL = Antilog (2.768/5) = 0.553

INTERPRETATION:

The above table shows that the growth of BSE BANKER is 1.296 against the growth of

BSE OIL of 0.553. There is a phenomenal growth in BSE OIL.

TABLE NO: 3.4.2.5

3.4.2.5. Growth Rate of the BSE IT and the BSE AUTO

BSE IT Log X1 BSE AUTO Log X223.03 1.362 18.76 1.273

22.93 1.360 17.3 1.238

22 1.342 16.09 1.206

19.67 1.293 14.97 1.175

20.04 1.301 15.58 1.192

6.658 6.084



BSE IT = Antilog (6.658/5) = 1.331

BSE AUTO = Antilog (6.084/5) =1.216


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INTERPRETATION:

The above table shows that the growth of BSE IT is 1.331 against the growth of BSE

AUTO of 1.216. There is a phenomenal growth in BSE IT.

TABLE NO: 3.4.2.6

3.4.2.6 .Growth Rate of the BSE CEMENT and the BSE OIL

BSE CEMENT Log X1 BSE OIL Log X2

1.06 0.025 3.71 0.569

1.05 0.021 3.73 0.571

1.08 0.033 3.62 0.558

1.16 0.064 3.4 0.531

1.13 0.053 3.46 0.539

0.196 2.768



BSE CEMENT = Antilog (0.196/5) = 0.039

BSE OIL = Antilog (2.768/5) = 0.553

INTERPRETATION:

The above table shows that the growth of BSE CEMENT is 0.039 against the growth of

BSE OIL of 0.553. There is a phenomenal growth in BSE OIL.

3.5. RETURN ANALYSIS

3.5.1. STANDARD DEVIATION


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2 = [ (R-)2 / n 1]

Where 2 = Variance of return

= Standard Deviation of return

R = Return from the stock in period

= Arithmetic return

n = Number of periods

TABLE NO: 3.5.1

S. No EQUITY SCRIPS 2 = 21. BSE BANKEX 99.44/4 4.985

2. BSE IT 107.67/4 5.188

3. BSE AUTO 82.7/4 4.546

4. BSE CEMENT 5.48/4 1.170

5. BSE OIL 17.92/4 2.116


INTERPRETATION:

The above table inferred that the return of BSE IT is 5.188.BSE BANKER return is 4.985

and BSE AUTO is 4.546.and BSE OIL return is 2.116,return on BSE Cement Compare to five

sectors BSE IT face high risk and return is more than other sectors.

3.6. BETA ANALYSIS3.6.1. BETA ANALYSIS OF BSE BANKEX & BSE IT

TABLE NO: 3.6.1.


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BSE BANKEX & BSE IT

BANKEX(X) IT(Y) XY X2 Y2

21.97 23.03 505.96 482.68 530.38

20.89 22.93 479.00 436.39 525.78

20.09 22 441.98 403.60 484

18.11 19.67 356.22 327.97 386.90

18.38 20.04 38.42 337.82 401.60

99.44 107.67 1821.58 1988.46 2328.66


x = 99.44 y =107.67 xy =1821.58

x2 = 1988.46 y2 = 2328.66

= n xy (x) (y) / nx2 (x)2

= 5 (1821.58) (99.44) (107.67) / 5 (1988.46) (2328.66)2

= -1598.80 / -5412715.096 = 2.95

INTERPRETATION:

The Beta analysis reveals the risk factor of the sectors. From the above table, it is

inferred that Bank sector has the negative result, Viz the IT sector has the negative result. When

preferring the investment avenue on the basis of risk, Both Bank and IT sector is not preferable.

TABLE NO: 3.6.2.

3.6.2. BETA ANALYSIS OF BSE BANKEX & BSE AUTO


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BSE BANKEX & BSE AUTO

BANKEX(X) AUTO(Y) XY X2 Y2

21.97 18.76 412.15 482.68 351.93

20.89 17.3 361.39 436.39 299.29

20.09 16.09 323.24 403.60 258.88

18.11 14.97 271.10 327.97 224.10

18.38 15.58 286.36 337.82 242.73

99.44 82.7 1654.24 1988.46 1376.93


x = 99.44 y = 82.7 xy = 1654.24

x2 = 1988.46 y2 = 1376.93

= n xy (x) (y) / nx2 (x)2

= 5 (1654.24) (99.44) (82.7) / 5 (1988.46) (99.44)2

= 47.51 / 53.98 = 0.8801

INTERPRETATION:

The above table inferred that the Bank sector has the positive result, Viz the Auto sector

also positive result. When proffering the investment avenue on the Auto is high risk and return

has high.

TABLE NO: 3.6.3.3.6.3. BETA ANALYSIS OF BSE BANKER & BSE CEMENT


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BSE BANKER & BSE CEMENT

BANKER(X) CEMENT(Y) XY X2 Y2

21.97 1.06 23.28 482.68 1.12

20.89 1.05 21.93 436.39 1.10

20.09 1.08 21.69 403.60 1.16

18.11 1.16 21.00 327.97 1.34

18.38 1.13 20.76 337.82 1.27

99.44 5.48 108.66 1988.46 5.99


x =99.44 y = 5.48 xy = 108.66

x2 = 1988.46 y2 = 5.99

= n xy (x) (y) / nx2 (x)2

= 5 (108.66) (99.44) (5.48) / 5 (1988.46) (99.44)2

= -1.63/53.98 = -0.030

INTERPRETATION:

The above table shows that the risk of Cement is more than other sectors. The Bank has

negative result. So compare to Bank sector, Cement sector is more return. So investor preferring

the Cement sector has high return.


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TABLE NO: 3.6.4

3.6.4 BETA ANALYSIS OF BSE BANKEX & BSE OIL

BSE BANKEX & BSE OIL

BANKEX(X) OIL(Y) XY X2 Y2

21.97 3.71 81.50 482.68 13.76

20.89 3.73 77.91 436.39 13.91

20.09 3.62 72.72 403.60 13.10

18.11 3.4 61.57 327.97 11.56

18.38 3.46 63.59 337.82 11.97

99.44 17.92 357.29 1988.46 64.3


x = 99.44 y = 17.92 xy = 357.29

x2 = 1988.46 y2 = 64.3

= n xy (x) (y) / nx2 (x)2

= 5 (357.29) (99.44) (17.92) / 5 (1988.46) (99.44)2

= 4.485 /53.98 = 0.083

INTERPRETATION:

The above table inferred that the Bank sector has the positive result, Viz the Oil sector

also positive result. When preferring the investment avenue on the Oil is high risk and return has

high.

TABLE NO: 3.6.5


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3.6.5 BETA ANALYSIS OF BSE IT & BSE AUTO

BSE IT & BSE AUTO

IT(X) AUTO(Y) XY X2 Y2

23.03 18.76 432.04 530.38 351.93

22.93 17.3 396.68 525.78 299.29

22 16.09 353.98 484 258.88

19.67 14.97 294.45 386.90 224.10

20.04 15.58 312.22 401.60 242.73

107.67 82.7 1789.37 2328.66 1376.93


x =107.67 y = 82.7 xy = 1789.37

x2 = 2328.66 y2 = 1376.93

= n xy (x) (y) / nx2 (x)2

= 5 (1789.37) (107.67) (82.7) / 5 (2328.66) (107.67)2

= 42.54/50.47 =0.84

INTERPRETATION:

The above table shows that the risk of BSE Auto is more than other sectors. The BSE IT

has positive result. So compare to IT sector, Auto sector is more return. So investor preferring

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