PORTFOLIO OF STOCKS

RAI BUSINESS SCHOOL, RAI UNIVERSITY

NEW DELHI
SUBMITTED BY
ROHIT PATHAK
JATINDER PAL SINGH
VIPUL GUPTA
MUKESH GOEL
SANA ANASARI
RAJAT SETHI

SUBMITTED TO
MRS. PARUL MALIK
LECTURER S.A.P.M

TASK TO BE PERFORMED
Establish a portfolio by taking ten stocks of your choice from any industry/industries.
Other tasks included in this assignment: IDENTIFY RELATIVE RISK OF YOUR PORTFOLIO VS. BENCHMARK
MEASURE RETURN OF YOUR PORTFOLIO AND ITS BENCHMARK
ANALYSE THE PERFORMANCE OF THE PORTFOLIO.
SUGGEST MEASURES TO REDUCE THE LEVELS OF RISK IN YOUR
PORTFOLIO.

Equity
Equity is a term whose meaning depends very much on the context.
1.
A term describing stock, or any security, representing an ownership interest.
2.
On the balance sheet, equity refers to the value of the funds contributed by the owners (the
stockholders) plus the retained earnings (or losses).
3.
In the context of margin trading, equity is the value of securities minus what has been borrowed
from the brokerage.
In general, you can think of equity as ownership. For example, stocks are equity because they represent
ownership of a company, whereas bonds are classified as debt because they represent an obligation to
pay and not ownership of assets.
On the balance sheet, equity is also referred to as shareholder's equity.
Equity Analysis
Equity Analysis is for acquiring, analyzing, charting, and creating reports of equity data. It can perform
in depth Fundamental Analysis (FA) and Technical Analysis (TA), on current or historical data of
various financial instruments. It provides outstanding charting and development capability for
analyzing financial markets.
Equity is viewed by the market as an ownership "share" in the revenue stream of a corporation's income
once all prior obligations and debts have been satisfied. The "share" price is the relative value given to
the corporations earning potential based on a number of factors. These include general economic
conditions, both in the industry and in the overall economy, earnings projection, projected corporate
growth, corporate stage of development, and financial ratio analysis. The overall analysis of a firm's
future earning potential must be done through both fundamental and technical analysis, including
charting and other indicators.
Need for Equity Analysis
As the market relentlessly calls into question virtually every portion of investors stock portfolio, even
the most independent-minded investor can start doubting himself. They would think again, did I make
the right decisions when I bought these stocks? In times like these, strong analysis becomes key to the
conviction. For this they need an in-depth scrutiny on the companys equity.
Equity Analysis efficiently fulfills this requirement. It helps in providing the information to the
investors about the companys performance in the market so that they can easily make decisions in
which companys share should they invest in order to maximize the rate of return on their
investments. It also furnishes the comparison of the company with other players in that industry which
enables them to efficiently segregate their investment options.

RESEARCH METHODOLOGY
As a portfolio of 10 best stocks is to be developed, being an investor we have to consider a number of
factors. We as investors have decided to take two stocks of from each sector. The sectors taken are 10
in number and the stocks for these sectors are taken on a random basis. These stocks as well as the
sectors that have been taken up include: 1) OIL AND GAS
ONGC
IOC
2) TELECOM
BHARTI
TATATELE
3) AUTO
HEROHONDA
BAJAJAUTO
4) BANKING
ICICI
SBI
5) PHARMA
CIPLA
AVENTIS
6) FMCG
DABUR
TATATEA
7) IT
INFOSYS
AMPHASIS
8) HEAVY ELECTRICALS
BHEL
TATAPOWER
9) STEEL
TISCO
SAIL
10) ENTERTAINMENT
NDTV

 ZEETELE

The closing prices of these stocks for the period of 1st August 2004 upto 15th August 2004 are taken
(source www.nse-india.com). Along with this the closing NSE indexes for the same period are taken.
Each day change in the NSE index have been calculated with the formulae

Change in index = (Todays Price Yesterdays Price) / Yesterdays Price * 100

Also the returns from each stock have been calculated with the same formulae as listed above. After
calculating the returns from the stocks under each sector separately the returns of individual stocks are
multiplied with the change in the NSE index on a daily basis.
This exercise is basically done to calculate beta () so that on the basis of the value of the best suited
stocks can be selected thereby to develop a good portfolio of stocks.
Beta is basically the slope of the characteristic regression line. It describes the relationship between the
stocks return and the index returns.
The formulae for calculating beta are as follows: -

nxz -(x)
(z)

Suppose the value of beta comes out to be 0.35%, it signifies that 1% change in NSE index return
would cause 0.35% change in the return of the particular stock for which the beta has been calculated.
Implications related with beta are as follows: Beta = +1.0: 1% change in the market index return causes exactly 1% change in the stock
return. It indicates that the stock moves in the same direction and with the same flow with the
index.
Beta = +0.5: 1% change in the market index return causes exactly 0.5% change in the stock
return. This means that the stock is less volatile as compared to the market.
Beta = +2.0: 1% change in the market index return causes exactly 2% change in the stock
return. The stock is more volatile. The result that the stock would show when there would be a
decline of 15% in the market return will be 30% fall in the return on the stock with beta of 2%.
Thus the stocks with more than 1 beta value are considered to be more risky.
Negative Beta value indicates that the stock return moves in the opposite direction to the
market return. 10% fall in the market index would result in the 10% increase in the return of
the stock with beat value 1.0%.
The beta values for each of the stocks in the different sectors are calculated. After calculating the
beta values of the stocks, the Alpha () values of the stocks are also calculated. Alpha is the
intercept of the characteristic regression line. The value of Alpha indicates that the stock return is
independent of the market return. A positive value of alpha is healthy sign this would yield
profitable return. The formula for calculating the value of alpha is: =Y - X

Accordingly the task has been performed and the results of the beta and alpha values have been utilized
to select from among the 20 stocks, 10 best stocks so as to develop the best portfolio. The data for the
period from 1st August to 15th August 2004 shows the movement in the NSE index as illustrated in the
figure: -

MOVEMENT OF THE NSE

1680.00

INDEX

1650.00

INDEX
1620.00

1590.00

13th Aug 04

12th Aug 04

11th Aug 04

10th Aug 04

9th Aug 04

6th Aug 04

5th Aug 04

4th Aug 04

3rd Aug 04

2nd Aug 04

1560.00

DATE

INSIGHTS OF THE NSE MOVEMENT

Initially on 2nd of August the value of the index was 1639 points. The movement
of the index was downwards and fell down to 1626 points as on 4th.
After 4th of August there was an upward flow in the index and rose upto 1654 on
5th August.
The movement of the index kept on moving up and down till 10th August.
After 10th there was a constant fall in the NSE index and fell down to less than
1600 0n 13th August.
CALCULATION OF THE BETA VALUES OF THE STOCKS UNDER VARIOUS SECTORS

OIL AND GAS

NSE INDEX
DATED

INDEX

ONGC

CHANGE

SH. VALUE

X
2/8/04
3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

IOC
RETURN

SH. VALUE RETURN

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

TOTAL

x2

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

732.60
718.25
729.95
739.25
718.25
713.75
711.70
686.00
676.95
691.00

xz

-1.96
1.63
1.27
-2.84
-0.63
-0.29
-3.61
-1.32
2.08

1.01
-0.40
2.22
3.70
-0.35
-0.17
6.68
1.17
-1.16

-5.67

12.70

= nxy -(x)
(y)

423.20
412.10
418.25
426.40
406.90
393.40
401.10
393.40
385.95
395.00

xz

-2.62
1.49
1.95
-4.57
-3.32
1.96
-1.92
-1.89
2.34

1.35
-0.37
3.40
5.95
-1.87
1.14
3.55
1.68
-1.31

-6.58

13.53

= nxz -(x)
(z)

1.17

nx2 -(x)2

1.23

nx2 -(x)2

TELECOM
NSE INDEX
DATED

INDEX

BHARTI

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

TOTAL

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

RETURN

SH. VALUE

Y
x

2nd /08/04

TATATELE

x2

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

RETURN

Z
y

151.35
150.05
150.60
150.40
149.00
152.15
157.50
157.30
158.60
150.70

xz

-0.86
0.37
-0.13
-0.93
2.11
3.52
-0.13
0.83
-4.98

0.44
-0.09
-0.23
1.21
1.19
2.04
0.23
-0.73
2.79

-0.21

6.86

= nxy -(x)
(y)
2

nx -(x)

0.71

257.70
258.05
253.45
279.10
278.05
285.35
305.50
292.35
290.35
292.55

xz

0.14
-1.78
10.12
-0.38
2.63
7.06
-4.30
-0.68
0.76

-0.07
0.44
17.67
0.49
1.48
4.11
7.96
0.61
-0.42

13.55

32.26

= nxz -(x)
(z)
2

nx -(x)

3.70

AUTO
NSE INDEX
DATED

INDEX

HEROHONDA

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

RETURN

SH. VALUE

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

TOTAL

y
438.10
432.30
430.10
447.60
452.00
465.80
464.15
450.15
444.25
441.20

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

RETURN

x2

x
2nd /08/04

BAJAJAUTO

xz

-1.32
-0.51
4.07
0.98
3.05
-0.35
-3.02
-1.31
-0.69

0.68
0.13
7.10
-1.28
1.72
-0.21
5.58
1.16
0.38

0.90

15.27

= nxy -(x)
(y)
2

1.61

852.55
848.15
839.35
841.95
854.45
869.10
890.90
875.65
870.85
863.00

xz

-0.52
-1.04
0.31
1.48
1.71
2.51
-1.71
-0.55
-0.90

0.27
0.26
0.54
-1.93
0.97
1.46
3.17
0.49
0.50

1.30

5.71

= nxz -(x)
(z)

nx -(x)

0.63

nx -(x)

BANKING
NSE INDEX
DATED

INDEX

ICICI

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

TOTAL

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

RETURN

SH. VALUE RETURN

Y
x

2nd /08/04

SBI

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

Z
y

275.90
273.50
271.00
279.10
272.55
277.10
275.20
277.40
277.00
275.15

xz

-0.87
-0.91
2.99
-2.35
1.67
-0.69
0.80
-0.14
-0.67

0.45
0.23
5.22
3.06
0.94
-0.40
-1.48
0.13
0.37

-0.17

8.52

= nxy -(x)
(y)
nx2 -(x)2

0.88

442.30
440.00
437.65
447.65
441.10
457.80
459.75
447.25
442.35
445.95

xz

-0.52
-0.53
2.28
-1.46
3.79
0.43
-2.72
-1.10
0.81

0.27
0.13
3.99
1.91
2.13
0.25
5.03
0.97
-0.46

0.98

14.22

= nxz -(x)
(z)
nx2 -(x)2

1.50

PHARMA
NSE INDEX
DATED

INDEX

CIPLA

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

RETURN

SH. VALUE RETURN

Y
x

2nd /08/04

AVENTIS

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

TOTAL

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

y
247.75
244.85
240.85
244.40
243.20
244.35
243.55
243.35
244.25
243.55

xz

-1.17
-1.63
1.47
-0.49
0.47
-0.33
-0.08
0.37
-0.29

0.60
0.41
2.57
0.64
0.27
-0.19
0.15
-0.33
0.16

-1.67

4.28

= nxy -(x)
(y)

0.40

798.80
791.05
797.15
796.90
790.60
785.80
788.55
811.00
814.30
815.90

xz

-0.97
0.77
-0.03
-0.79
-0.61
0.35
2.85
0.41
0.20

0.50
-0.19
-0.05
1.03
-0.34
0.20
-5.26
-0.36
-0.11

2.17

-4.59

= nxz -(x)
(z)

nx2 -(x)2

-0.42

nx2 -(x)2

FMCG
NSE INDEX
DATED

INDEX

DABUR

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

TOTAL

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

RETURN

SH. VALUE RETURN

Y
x

2nd /08/04

TATATEA

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

Z
y

67.30
65.70
67.85
69.15
70.35
69.70
70.00
68.70
67.00
66.50

xz

-2.38
3.27
1.92
1.74
-0.92
0.43
-1.86
-2.47
-0.75

1.23
-0.81
3.35
-2.26
-0.52
0.25
3.43
2.20
0.42

-1.03

7.28

= nxy -(x)
(y)

0.73

417.55
418.70
409.70
407.35
410.15
408.35
411.95
400.05
404.30
400.45

xz

0.28
-2.15
-0.57
0.69
-0.44
0.88
-2.89
1.06
-0.95

-0.14
0.53
-1.00
-0.90
-0.25
0.51
5.34
-0.94
0.53

-4.10

3.69

= nxz -(x)
(z)

0.28

nx2 -(x)2

nx2 -(x)2

IT
NSE INDEX
DATED

INDEX

INFOSYS

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

RETURN

SH. VALUE RETURN

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

2nd /08/04

MPHASIS

TOTAL

x2

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

1556.00
1576.90
1548.10
1557.80
1526.80
1534.25
1525.10
1504.10
1498.65
1479.85

xz

1.34
-1.83
0.63
-1.99
0.49
-0.60
-1.38
-0.36
-1.25

-0.69
0.45
1.09
2.59
0.27
-0.35
2.55
0.32
0.70

-4.95

6.94

= nxy -(x)
(y)
2

0.59

xz

-2.83
0.69
-0.74
-0.25
-1.52
-0.22
-1.91
-2.74
-0.74

1.46
-0.17
-1.29
0.32
-0.86
-0.13
3.54
2.43
0.41

-10.26

5.72

291.20
282.95
284.90
282.80
282.10
277.80
277.20
271.90
264.45
262.50

= nxz -(x)
(z)

nx -(x)

0.33

nx -(x)

HEAVY ELECTRICAL
NSE INDEX
DATED

INDEX

BHEL

CHANGE

SH. VALUE

X
2nd /08/04
3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

TOTAL

RETURN

SH. VALUE

Y
x

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

TATAPOWER

x2

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

y
544.75
529.95
528.95
550.80
556.25
575.40
567.70
559.85
562.60
562.85

RETURN

Z
xz

-2.72
-0.19
4.13
0.99
3.44
-1.34
-1.38
0.49
0.04

1.40
0.05
7.21
-1.29
1.94
-0.78
2.56
-0.44
-0.02

3.47

10.63

268.45
267.90
263.55
264.65
263.45
270.70
270.05
267.00
265.95
267.50

xz

-0.20
-1.62
0.42
-0.45
2.75
-0.24
-1.13
-0.39
0.58

0.11
0.40
0.73
0.59
1.55
-0.14
2.09
0.35
-0.33

-0.29

5.35

 = nxy -(x)
(y)

1.19

= nxz -(x)
(z)

nx2 -(x)2

0.55

nx2 -(x)2

STEEL
NSE INDEX
DATED

INDEX

TISCO

CHANGE

SH. VALUE

3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

RETURN

SH. VALUE RETURN

Y
x

2nd /08/04

SAIL

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

TOTAL

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

-2.47

10.25

y
391.25
396.05
398.10
402.65
403.80
403.45
406.40
258.60
257.90
256.05

1.23
0.52
1.14
0.29
-0.09
0.73
-36.37
-0.27
-0.72

-0.63
-0.13
2.00
-0.37
-0.05
0.43
67.25
0.24
0.40

-33.54

69.13

= nxy -(x)
(y)
2

xz

6.31

39.55
39.20
39.30
41.30
40.80
40.15
41.05
38.45
38.25
38.20

xz

-0.88
0.26
5.09
-1.21
-1.59
2.24
-6.33
-0.52
-0.13

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

-3.09

-2.47

= nxz -(x)
(z)

nx -(x)

-0.34

nx -(x)

ENTERTAINMENT
NSE INDEX
DATED

INDEX

NDTV

CHANGE

SH. VALUE

X
2nd /08/04
3rd /08/04
4th /08/04
5th /08/04
6th /08/04
9th /08/04
10th /08/04
11th /08/04
12th /08/04
13th /08/04

1639.05
1630.60
1626.55
1654.95
1633.40
1642.60
1652.15
1621.60
1607.20
1598.20

ZEETELE
RETURN

SH. VALUE RETURN

Y
x

x2

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

0.27
0.06
3.05
1.70
0.32
0.34
3.42
0.79
0.31

87.20
85.65
85.40
85.95
85.95
85.00
85.95
84.85
84.00
83.30

Z
y

xz

-1.78
-0.29
0.64
0.00
-1.11
1.12
-1.28
-1.00
-0.83

0.92
0.07
1.12
0.00
-0.62
0.65
2.37
0.89
0.47

139.75
139.45
140.65
139.50
134.85
131.75
133.85
132.35
132.60
131.55

xz

-0.21
0.86
-0.82
-3.33
-2.30
1.59
-1.12
0.19
-0.79

-0.52
-0.25
1.75
-1.30
0.56
0.58
-1.85
-0.89
-0.56

TOTAL

-2.47

10.25

-4.53

= nxy -(x)
(y)

5.86

-5.93

= nxz -(x)
(z)

0.49

nx2 -(x)2

nx2 -(x)2

CALCULATION OF THE ALPHA VALUES OF THE STOCKS UNDER

The calculation of the alpha value is done as follows: FOR STOCK ASSIGNED SYMBOL Y

=Y - X

X = x / (n-1)
Y = y / (n-1)
FOR STOCK ASSIGNED SYMBOL Z

=Z - X

X = x / (n-1)
Z = x / (n-1)
ALPHA VALUES
OIL AND GAS
ONGC
X

-0.27

IOC

-0.63

-0.73

-0.31

-0.39

TELECOM
BHARTI

TATATELE

-2.47

-0.41

-0.27

-0.02

1.51

0.17

2.52

-0.27 AUTO

0.10

0.14

0.54

0.32

HEROHONDA

-0.27

BANKING

BAJAJAUTO

-0.02

0.11

0.22

0.52

ICICI

SBI

PHARMA
CIPLA
X

-0.27

AVENTIS
Y

-0.19

0.24

-0.08

0.13

FMCG
DABUR
X

-0.27

TATATEA
Y

-0.11

-0.46

0.09

-0.38

IT
INFOSYS
X

-0.27

MPHASIS

-0.55

-1.14

-0.39

-1.05

HEAVY ELECTRICAL
BHEL
X

-0.27

TATAPOWER

0.39

-0.03

0.71

0.12

STEEL
TISCO
X

-0.27

SAIL
Y

-3.73

-0.34

-1.99

-0.44

ENTERTAINMENT
NDTV
X

-0.27

ZEETELE
Y

-0.50

-0.66

-0.37

-0.77

CALCULATION OF THE STANDARD DEVIATION OF THE STOCKS

The Standard Deviation is basically the measure of the values of the variables around its mean or it is
the square root of the sum of the squared deviations from the mean divided by the number of
observations (days in this case). The mean for two companies might be the same but the returns might
vary.
The formulae for the calculation of standard deviation are as follows: -

= (X X)2

In the present case the standard deviation represents the variable around its mean. The mean is
calculated as follows: -

X = X / n

METHOD FOR THE SELECTION OF THE STOCKS FOR THE PORTFOLIO

All the 20 stocks under the 10 sectors are taken together and then the Standard Deviation of each of the
stocks is calculated by applying the up listed formulae for Mean as well as for Standard Deviation.
All the stocks are considered under similar criteria and not different under different sectors as it was
treated for the calculation of the beta and the alpha values. After the values of the Standard Deviations
of each of the stocks is calculated then these S. D. values are used for making a comparison among the
20 stocks available to choose the best 10. The value of the S. D should not be the highest, the less the
value of the S. D, more stable the stock is.

OIL AND GAS

IOC

ONGC

SH. VALUE

SH. VALUE

423.20
412.10
418.25
426.40
406.90
393.40
401.10
393.40
385.95
395.00

X- X

(X - X)2

17.63
6.53
12.68
20.83
1.33
-12.17
-4.47
-12.17
-19.62
-10.57

310.82
42.64
160.78
433.89
1.77
148.11
19.98
148.11
384.94
111.72

732.60
718.25
729.95
739.25
718.25
713.75
711.70
686.00
676.95
691.00

1762.77

7117.70

4055.70

X- X

20.83
6.48
18.18
27.48
6.48
1.98
-0.07
-25.77
-34.82
-20.77

(X - X)2

433.89
41.99
330.51
755.15
41.99
3.92
0.00
664.09
1212.43
431.39
3915.38

X
405.57
41.99

TELECOM
BHARTI

TATATELE

SH. VALUE

SH. VALUE

711.77
62.57

151.35
150.05
150.60
150.40
149.00
152.15
157.50
157.30
158.60
150.70

X- X

(X - X)2

-1.41
-2.71
-2.16
-2.36
-3.76
-0.61
4.74
4.54
5.84
-2.07

2.00
7.37
4.69
5.59
14.18
0.38
22.42
20.57
34.05
4.26

257.70
258.05
253.45
279.10
278.05
285.35
305.50
292.35
290.35
292.55

115.51

2792.45

1527.65

X- X

(X - X)2

-21.55
-21.20
-25.80
-0.14
-1.19
6.11
26.26
13.11
11.11
13.31

464.19
449.23
665.38
0.02
1.43
37.27
689.33
171.74
123.32
177.02
2778.93

152.77
10.75

279.25
52.72

AUTO
BAJAJAUTO

HEROHONDA

SH. VALUE

SH. VALUE

852.55
848.15
839.35
841.95
854.45
869.10
890.90
875.65
870.85
863.00

X- X

(X - X)2

-8.05
-12.45
-21.25
-18.65
-6.14
8.51
30.30
15.05
10.26
2.40

64.72
154.88
451.35
347.64
37.76
72.34
918.39
226.65
105.17
5.78

438.10
432.30
430.10
447.60
452.00
465.80
464.15
450.15
444.25
441.20

2384.68

4465.65

8605.95

X- X

(X - X)2

-8.47
-14.27
-16.47
1.03
5.43
19.24
17.58
3.58
-2.32
-5.37

71.66
203.49
271.10
1.07
29.54
369.99
309.23
12.85
5.36
28.78
1303.07

860.60
48.83

BANKING
ICICI
SH. VALUE

SBI
SH. VALUE

446.57
36.10

X
X- X

275.90
273.50
271.00
279.10
272.55
277.10
275.20
277.40
277.00
275.15

0.51
-1.89
-4.39
3.71
-2.84
1.71
-0.19
2.01
1.61
-0.24

2753.90

(X - X)2

0.26
3.57
19.27
13.76
8.07
2.92
0.04
4.04
2.59
0.06

442.30
440.00
437.65
447.65
441.10
457.80
459.75
447.25
442.35
445.95

54.58

4461.80

X- X

(X - X)2

-3.88
-6.18
-8.53
1.47
-5.08
11.62
13.57
1.07
-3.83
-0.23

15.05
38.19
72.76
2.16
25.81
135.02
184.14
1.14
14.67
0.05
489.01

X
275.39
7.39

446.18
22.11

PHARMA
AVENTIS

CIPLA

SH. VALUE

SH. VALUE

X
X- X

798.80
791.05
797.15
796.90
790.60
785.80

-0.21
-7.96
-1.86
-2.11
-8.40
-13.21

(X - X)2
0.04
63.28
3.44
4.43
70.64
174.37

X- X
247.75
244.85
240.85
244.40
243.20
244.35

3.74
0.84
-3.16
0.39
-0.81
0.34

(X - X)2
13.99
0.71
9.99
0.15
0.66
0.12

788.55
811.00
814.30
815.90

-10.46
12.00
15.30
16.90

7990.05

109.31
143.88
233.94
285.44

243.55
243.35
244.25
243.55

1088.78

2440.10

0.21
0.44
0.06
0.21
26.52

799.01
33.00

-0.46
-0.66
0.24
-0.46

244.01
5.15

FMCG
DABUR

TATATEA

SH. VALUE

SH. VALUE

X
X- X

67.30
65.70
67.85
69.15
70.35
69.70
70.00
68.70
67.00
66.50

-0.92
-2.52
-0.38
0.93
2.13
1.48
1.78
0.48
-1.22
-1.72

682.25

(X - X)2

0.86
6.38
0.14
0.86
4.52
2.18
3.15
0.23
1.50
2.98

417.55
418.70
409.70
407.35
410.15
408.35
411.95
400.05
404.30
400.45

22.77

4088.55

X- X

(X - X)2

8.69
9.84
0.84
-1.51
1.29
-0.50
3.09
-8.81
-4.56
-8.41

75.60
96.92
0.71
2.27
1.68
0.26
9.58
77.53
20.75
70.64
355.94

X
68.23
4.77

408.86
18.87

IT
INFOSYS

MPHASIS

SH. VALUE

SH. VALUE

X
X- X

1556.00
1576.90
1548.10
1557.80
1526.80
1534.25
1525.10
1504.10
1498.65
1479.85

25.24
46.15
17.34
27.04
-3.96
3.49
-5.66
-26.66
-32.11
-50.91

15307.55

(X - X)2
637.31
2129.36
300.85
731.43
15.64
12.22
31.98
710.49
1030.73
2591.32

291.20
282.95
284.90
282.80
282.10
277.80
277.20
271.90
264.45
262.50

8191.33

2777.80

X- X

(X - X)2

13.42
5.17
7.12
5.02
4.32
0.02
-0.58
-5.88
-13.33
-15.28

180.10
26.73
50.69
25.20
18.66
0.00
0.34
34.57
177.69
233.48
747.46

1530.76
90.51

277.78
27.34

HEAVY ELECTRICAL
TATAPOWER

BHEL

SH. VALUE

SH. VALUE

267.90
263.55
264.65
263.45
270.70
270.05
267.00
265.95
267.50

X- X

(X - X)2

0.98
-3.37
-2.27
-3.47
3.78
3.13
0.08
-0.97
0.58

0.96
11.36
5.15
12.04
14.29
9.80
0.01
0.94
0.34

529.95
528.95
550.80
556.25
575.40
567.70
559.85
562.60
562.85

57.22

5539.10

2669.20

X- X

(X - X)2

-23.96
-24.96
-3.11
2.34
21.49
13.79
5.94
8.69
8.94

574.08
623.00
9.67
5.48
461.82
190.16
35.28
75.52
79.92
2138.84

X
266.92
7.56

553.91
46.25

STEEL
SAIL

TISCO

SH. VALUE

SH. VALUE

39.20
39.30
41.30
40.80
40.15
41.05
38.45
38.25
38.20

X- X

(X - X)2

-0.42
-0.32
1.68
1.18
0.53
1.43
-1.17
-1.37
-1.42

0.18
0.11
2.81
1.38
0.28
2.03
1.38
1.89
2.03

396.05
398.10
402.65
403.80
403.45
406.40
258.60
257.90
256.05

12.09

3574.25

396.25

X- X

(X - X)2

38.62
40.68
45.22
46.37
46.02
48.97
-98.83
-99.53
-101.38

42951.77

39.63
3.48

1491.89
1654.46
2045.30
2150.64
2118.30
2398.55
9766.38
9905.23
10276.89

357.43
207.25

ENTERTAINMENT
NDTV

ZEETELE

SH. VALUE

SH. VALUE

X
X- X

(X - X)2

X- X

(X - X)2

87.20
85.65
85.40
85.95
85.95
85.00
85.95
84.85
84.00
83.30

1.88
0.33
0.08
0.63
0.63
-0.33
0.63
-0.48
-1.33
-2.03

853.25

3.52
0.11
0.01
0.39
0.39
0.11
0.39
0.23
1.76
4.10

139.75
139.45
140.65
139.50
134.85
131.75
133.85
132.35
132.60
131.55

10.99

1356.30

4.12
3.82
5.02
3.87
-0.78
-3.88
-1.78
-3.28
-3.03
-4.08

127.16

85.33
3.32

16.97
14.59
25.20
14.98
0.61
15.05
3.17
10.76
9.18
16.65

135.63
11.28

PORTFOLIO
BASED ON THE STANDARD DEVIATION, BETA VALUES AND ALPHA VALUES THE
FOLLOWING PORTFOLIO CAN BE PREPARED: 1. INDIAN OIL CORPORATION (IOC)
2. BHARTI
3. BAJAJ AUTO
4. ICICI
5. AVENTIS
6. DABUR
7. INFOSYS
8. TATAPOWER
9. STEEL AUTHORITY OF INDIA LIMITED (SAIL)
10. NEW DELHI TELEVISION (NDTV)

COMPANY

S.D.

BETA

ALPHA

IOC
BHARTI
BAJAJAUTO
ICICI
AVENTIS
DABUR
INFOSYS
TATAPOWER

41.99
10.75
48.83
7.39
33.00
4.77
90.51
7.56

1.23
0.71
0.63
0.88
-0.42
0.73
0.33
0.55

-0.39
0.17
0.32
0.22
0.13
0.09
-1.05
0.12

SAIL
NDTV

3.48
3.32

-0.34
0.49

-0.44
-0.39

* THE PORTFOLIO HAS BEEN DEVELOPED ON THE BASIS OF THE

STOCKS IN THE PERIOD FROM 1st AUGUST 2004 TO 15th AUGUST 2004.
THE VARIOUS OTHERS FACTORS MAY HAVE NOT BEEN CONSIDERED
DUE TO WHICH THE PORTFOLIO MIGHT DIFFER IN CASES.