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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_Petroleum7/28/2019 Parimalanathan,MBA .Project Report
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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_India7/28/2019 Parimalanathan,MBA .Project Report
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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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary Data
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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Month Price of Highestvalue
Price ofLowest value
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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Month Price of Highestvalue
Price ofLowest value
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.5
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 18.31% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.6
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 13.91% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.7
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 52.30% in the
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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Month Price of Highestvalue
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
Source: Secondary DataTABLE NO: 3.2.8
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 13.54% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.9
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 32.96% in the
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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Month Price of Highestvalue
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
Source: Secondary Data
TABLE NO: 3.2.10
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 34.22% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.11
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 29.50% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.12
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.13
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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Month Price of Highestvalue
Price ofLowest value
Range % of theprice
November 2010 166.8 133.05 33.75 25.36December 2010 152.6 130.85 21.75 16.62
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
Source: Secondary DataTABLE NO: 3.2.14
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 28.67% in the
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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Month Price of Highestvalue
Price ofLowest value
Range % of theprice
November 2010 434.8 360.5 74.3 20.61December 2010 383.75 300.05 83.7 27.89
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
Source: Secondary DataTABLE NO: 3.2.15
INTERPRETATION:From the above table decides that bank has resulted in the maximum percentage of 27.89% in the
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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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.16
INTERPRETATION:From the above table decides that bank has resulted in the maximum percentage of 24.68% in the
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
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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.17
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
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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.18
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 29.40% in the
month of November, and the minimum percentage of 15.87% in the month of January.
Indian Oil Corporation (IOC)
TABLE NO: 3.2.19
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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.19
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
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Month Price of Highestvalue
Price ofLowest value
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
Source: Secondary DataTABLE NO: 3.2.20
INTERPRETATION:
From the above table decides that bank has resulted in the maximum percentage of 44.75% in the
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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Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
BSE BANKEX = Antilog (6.483/5) = 1.296
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
BSE BANKEX = Antilog (6.483/5) = 1.296
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
BSE BANKEX = Antilog (6.483/5) = 1.296
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
Geometric Mean = Antilog (log x / n)
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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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
Source: Secondary Data
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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