SYNOPSYS ON

BETA STABILITY ANALYSIS OF BANKING STOCK WITH THE SPECIAL REFERENCE TO JRG SECURITY LTD.

Submitted by

: Pavan Kumar 2nd Year MBA A 4SF11MBA58 Sahyadri college of Engineering and Management

Internal Guide

: Dr. Vidyavathi Professor Department of MBA Sahyadri college of Engineering and Management

External Guide

Mr.Anil N. Karkera Branch Manager JRG Securities Ltd.

Introduction to the topic: Investors look at several parameters like EPS, earning growth rate, ROIC, Debt-toprofit, P-E ratios and many more of a company to find a good buy. These parameters are no doubt will get us to the best companies available at a point of time. But there are some other important parameters which can enhance our return when looked properly. Stocks Beta is one such parameter, which is easy to calculate and easy to apply while selecting stocks. The significant role played by beta in diverse aspects of financial decision making has forced people from small investors to investment bankers to rethink on beta in the era of globalization. In the present changing market condition, it is imperative to understand the stability of beta which augments an efficient investment decisions with additional information on beta. This study examined the stability of beta for India market for a ten year period from 2008 to 2012. The monthly return data of 15 selected stocks are considered for examining the stability of beta. Company Introduction: JRG Securities Ltd is one of India's leading financial services providers with strong presence in South India. The company along with their subsidiaries is primarily engaged in the business of retail broking (equity and commodity broking), direct insurance agent and financial services. Their product suite includes equity trading, commodity trading, currency derivatives, insurance broking, margin financing and loans against shares, among others. They offer an online product, through a brand, Inditrade, to offer services to the online customers. The company is a member of the National Stock Exchange of India (NSE), the Bombay Stock Exchange (BSE), the National Multi Commodity Exchange of India Ltd (NMCEIL), the National Commodities Derivatives Exchange Ltd (NCDEX), the Multi Commodity Exchange of India Ltd (MCX) and the Indian Pepper and Spices Trades Association (IPSTA). They are a full-fledged depository participant of the National Securities

Depository Ltd and Central Depository Services (India) Ltd. Besides these, they are also a leading Insurance Broker. The company is 44.8%-owned by Duckworth Ltd, a subsidiary of Baring India Pvt Equity Fund II Ltd. The company is headquartered in Kochi with a physical presence of about 475 branches and associates across Kerala, Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra. The company is listed on the Bombay Stock Exchange and has a diverse set of public shareholders. JRG Securities Ltd was incorporated on October 17, 1994 as a private limited company with the name JRG Associates Pvt Ltd. Initially, the company was started as a partnership firm in the year 1992, and later converted into a private limited company. In the year 1994, they became a member of the Cohin Stock Exchange. They initially focused on developing a client base in Kerala and Tamil Nadu and established several operation centres across these states.

Objectives Of The Study: Primary Objective This study is conducted to determine the Stability of beta of banking stock.

Secondary Objectives To understand the daily trading in the stock broking house. measures the volatility of a banking industry stock in relation to a BSE Bankex To understand the fluctuation in the banking stock in relation to the market index.

Source of Data: The data collected for the purpose of the study was secondary data. The 5 year monthly data of 15 banking industry stocks listed in BSE. The monthly data of 5years from 2008 to 2012 was collected from BSEINDIA.com. The monthly closing price is used to calculate the beta. Bibliography: Websites: 1. http://www.wikihow.com/Calculate-Beta 2. http://moneyterms.co.uk/beta/beta-calculation/ Books:

Bibliography
Pandian, P. (n.d.). Security Analysis And Portfolio Management. new Delhi.