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TABLE OF CONTENTS

Section
PART A
1
2

Particulars

3
4
5
6
PART B
7
8

Mc Kinseys 7s frame work


SWOT analysis
Analysis of financial statement
Learning experience

9
10
11
12
13

Analysis and Interpretation


Finding
Suggestions
Conclusion
Bibliography

Page No

Executive Summary
Industry Profile
Company Profile
Background of the company
Product & Services
Vision, mission
Ownership pattern
Achievement and awards
Competitors information
Area of operations
Work flow model
Future growth and prospects

General introduction
Design of the study
Title of the study
Statement of the problem
Objective of the study
Scope of the study
Methodology of data collection
Limitations of the study

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PART A

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INDUSTRY
PROFILE

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1. INDUSTRIAL PROFILE

1.1 INDIAN STOCK BROKERING INDUSTRY


The Indian broking industry is one of the oldest trading industries that have been around even
before the establishment of BSE in 1875. BSE is the oldest stock market in India. The history of
India stock trading starts with 318 persons taking membership in Native share and Stock Brokers
Association, which we know by the name Bombay Stock Exchange or BSE in short. In 1965,
BSE got permanent recognition from the Government of India. BSE and NSE represent
themselves as synonyms of India stock market. The history of India stock market is almost the
same as the history of BSE. The regulations and reforms been laid down in the equity market has
resulted in rapid growth and development .Basically the growth in the equity market is largely
due to the effective intermediaries. The broking houses not only act as an intermediate link for
the equity market but also for the commodity market, the foreign currency exchange market and
many more. The broking houses have also made an impact on foreign investors to invest in India
to certain extent. In the last decade, the Indian brokerage industry has undergone a dramatic
transformation..Large and fixed commissions have been replaced by wafer thin margins, with
competition driving down the brokerage fee , in some cases to a few basis points. There have
also been major changes in the way the business is conducted. The scope of services have
enhanced from being equity products to a wide range of financial services.
1.2 HISTORY OF THE INDIAN STOCK MARKET
The Origin:
One of the oldest stock markets in Asia, The Indian Stock Markets has a 200 years old history. In
18th Century East India Company was the dominant institution and by end of the century,
business in its loan securities gained full momentum. By 1830'sBusiness on corporate stocks and
shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got
broader. In 1840's only half a dozen brokers are recognized by banks and merchants
1850's witnessed a rapid development of commercial enterprise saw brokerage business
attracting more people into the business and its shown in 1860's when number of brokers
increased to 60
1860-61 The American Civil War broke out which caused a stoppage of cotton supply from
United States of America; marking the beginning of the "Share Mania" in India and in 1862-63
the number of brokers increased to about 200 to 250. But in 1865 a disastrous slump began at the
end of the American Civil War (as an example, Bank of Bombay Share which had touched Rs.
1087 could only be sold at Rs. 87)

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1.3 PRE-INDEPENDENCE SCENARIO- ESTABLISHMENT OF DIFFERENT STOCK


EXCHANGES
Sharp increase seen in share prices of jute industries in 1870's was followed by a boom in tea
stocks and coal. In 1874 with the rapidly developing share trading business, brokers used to
gather at a street (now well known as "Dalal Street") for the purpose of transacting business. In
1875 "The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock
Exchange") was established in Bombay and in 1880's Development of cotton mills industry and
set up of many others.
Establishment of "The Ahmadabad Share and Stock Brokers' Association" in 1894,
Establishment of "The Calcutta Stock Exchange Association" in 1908
In 1920 Madras witnessed boom and business at "The Madras Stock Exchange" was transacted
with 100 brokers. But in 1923 when recession followed, number of brokers came down to 3 and
the Exchange was closed down.
Establishment of the Lahore Stock Exchange in 1934 and later in 1936 Lahore stock exchange
merge with the Punjab stock exchange. Again in 1937 Re-organization and set up of the Madras
Stock Exchange Limited (Pvt.) Limited led by improvement in stock market activities in South
India with establishment of new textile mills and plantation companies
Establishment of Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited in
1940
Establishment of "The Hyderabad Stock Exchange Limited" in1944
In 1947"Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks and Shares
Exchange Limited" were established and later on merged into "The Delhi Stock Exchange
Association Limited"

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1.4 POST INDEPENDENCE SCENARIO


The depression witnessed after the Independence led to closure of a lot of exchanges in the
country. Lahore stock Exchange was closed down after the partition of India, and later on
merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in
1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state
till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956.
The Exchanges that were recognized under the Act were:
1: Bombay stock exchange
2: Calcutta stock exchange
3: Madras stock exchange
4: Ahmadabad stock exchange
5: Delhi stock exchange
6: Hyderabad stock exchange
7: Bangalore stock exchange
8: Indore stock exchange
Many more stock exchanges were established during 1980's, namely:
1: Cochin stock exchange (1980)
2: Uttar Pradesh stock exchange association limited (at Kanpur, 1982)
3: Pune stock exchange limited (1982)
4: Ludhiana stock exchange association limited (1983)
5: Gauhati stock exchange limited (1984)
6: Kanara stock exchange limited (at Mangalore, 1985)
7: Magadh stock exchange association (at Patna, 1986)
8: Jaipur stock exchange limited (1989)
9: Bhubaneswar stock exchange association limited (1989)
10: Saurashtra Kutch stock exchange limited (at Rajkot, 1989)
11: Vadodra stock exchange limited (at Baroda, 1990)
12: Coimbatore stock exchange
13: Meerut stock exchange
At present, there are twenty one recognized stock exchanges in India which does not include the
Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India
Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of the Indian
Stock Markets. There was a sharp increase in number of Exchanges, listed companies as well as
their capital, which is visible from the following table:

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1946

S. No. As on 31st December

1961 1971 1975 1980 1985 1991 1995

14

20

22

No. of Stock Exchanges

No. of Listed Cos.

1125

1203 1599 1552 2265 4344 6229 8593

No. of Stock Issues of Listed


1506
Cos.

2111 2838 3230 3697 6174 8967 11784

Capital of Listed Cos. (Cr. Rs.)

Market value of Capital of 971


Listed Cos. (Cr. Rs.)

Capital per Listed


(4/2)(Lakh Rs.)

Cos.

24

63

113

168

175

224

514

Market Value of Capital per


Listed Cos. (Lakh Rs.) (5/2)

86

107

167

211

298

582

1770 5564

Appreciated value of Capital 358


per Listed Cos. (Lakh Rs.)

170

148

126

170

260

344

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270

753

1812 2614 3973 9723 32041 59583

1292 2675 3273 6750

2530 11027 47812


2
9
1

693

803

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Trading Pattern of the Indian Stock Market


Indian Stock Exchanges allow trading of securities of only those public limited companies that
are listed on the Exchange(s). They are divided into two categories:

Listed securities
of public limited
companies

specified
securities
(Forward
List)

Nonspecified
securities
(cash list)

Equity shares of company that


are:
*Dividend paying
*Growth oriented company
*paid up capital of atleast rs 50
million

Equity shares of companies


not covered in specified
securities.

*Market capitalisation of at
least
rs 100 milion
*Has more than 20000 share
holder

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Types of Transactions
The flowchart below describes the types of transactions that can be carried out on the Indian
stock exchanges

Transactions on Indian stock market

SPOT DELIVERY TRANSACTION


*Includes transactions that
require delivery and payment
within stipulated time period at
the time of entering into the
contract
*This period shell not be more
than 14 days following the date
of the contract

FORWARD TRANSACTIONS
*Transactions in which delivery
and payment can be extended by
further period of 14 days each
*The overall period shouid not
exceed 90 days from the date of
contract
*Transactions permited only in
case of specified shares

Indian stock exchange allows a member broker to perform following activities:


1: Act as an agent
2: Buy and sell securities for his clients and charge commission for the same
3: Act as a trader or dealer as a principal
4: Buy and sell securities on his own account and risk

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Over The Counter Exchange of India (OTCEI)


Traditionally, trading in Stock Exchanges in India followed a conventional style where people
used to gather at the Exchange and bids and offers were made by open outcry.

This age-old trading mechanism in the Indian stock markets used to create much functional
inefficiency. Lack of liquidity and transparency, long settlement periods and benami transactions
are a few examples that adversely affected investors. In order to overcome these inefficiencies,
OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the first screen
based nationwide stock exchange in India created by Unit Trust of India, Industrial Credit and
Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets,
Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and
Financial Services.

National Stock Exchange


In order to lift the Indian stock market trading system on par with the international standards. On
the basis of the recommendations of high powered Pherwani Committee, the National Stock
Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit
and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.
Advantages of Trading at NSE
1: Integrated network for trading in stock market of India
2: Fully automated screen based system that provide higher degree of transparency
3: Investors can transact from any part of the country at uniform prices
4: Great functional efficiency supported by totally computerized network

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COMPANY
PROFILE

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2. COMPANY PROFILE
2.1 The kotak Mahindra Group
Kotak Mahindra is one of Indias leading banking and financial services organizations, offering a
wide range of financial services that encompass ever sphere of life. From commercial banking, to
stock brokering, to mutual funds, to life insurance, to investment banking, the group caters to the
diverse financial needs of individuals and corporate sector.
T he group has net worth of over Rs. 100.6 billion and has distribution network of branches,
franchisees, representative offices and satellite offices across cities and towns in India, New
York, London, San Francisco, Dubai, Mauritius and Singapore servicing around 8 million
customers accounts.
Kotak Group Product and Services:
- Bank
- Life Insurance
- Mutual Fund
- Car finance
- Securities
- Institutional Equities
- Investment Banking
- Kotak Mahindra International
- Kotak Private Equity
- Kotak Realty Fund

2.1.1 Kotak Securities


Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which service
more than 7.4 lakh customers. The firm has a wide network of more than 1416 branches, franchisees,
representative offices, and satellite offices around 448 cities in India and offices in New York, London,
Dubai, Mauritius and Singapore.
Kotak Securities process more than 400000 trades a day which is much higher than some of the
renowned international brokers.
The company is a corporate member of both the Bombay Stock Exchange (BSE) and The National Stock
Exchange of India (NSE). Kotak securities operations include stock brokering services for trading in
stock markets through branches and internet and distribution of various financial products including
investment in IPOs, Mutual fund and Currency Derivatives. Currently, A Kotak security is one of the
largest broking houses in India with substantial geographical reach to Asia Pacific, Europe, Middle East
and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under Management (AMU) as of
31st Dec, 2011

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2.2 VISION AND MISSION


2.2.1 VISION
to be a leading stock broker in the capital market

2.2.2 MISSION

The most preferred employer in financial service


The most trusted financial service company
Value creation
The global Indian financial service brand

2.3 PRODUCTS AND SERVICES


2.3.1 EQUITIES
For those who are interested in investing in stocks directly, Kotak Securities provides Equity Services.
Investors have the choice to select the type of accounts from our vast range of offerings. Our research
analysts and advisors guide you so that we can help our clients in making prudent investment decisions.
2.3.2 DERIVATIVES
Derivatives are good investment option for aggressive investors. Trading of these investment product
require a high degree of discipline. We, at Kotak Securities, strive to make investing in derivatives
simple. Our Derivatives seminars educate new entrants as well as existing traders in the derivatives
market to be more equipped with the require knowledge and techniques.
2.3.3 MUTUAL FUNDS
Investing in over 3000 different Mutual Fund schemes through us is very simple and to choose between
the various schemes for investment, we offer you our exclusive research. Our customers can invest in
Mutual Fund via internet, phone or by simply filling up a form.
2.3.4 STRUCTURED PRODUCTS
Structured products are an ideal investment tool to meet specific investment needs that cannot be met by
standardized financial instruments. We offer you a variety of Structured Products That might help in
reducing your exposure to risk considerably.

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2.3.5 IPOs
Investing in IPOs is not complex process anymore. Kotak Securities has made investing in IPOs very
easy simple. Our client can now invest by simply making a phone call to us. We also provide you with
news on IPOs, update on forthcoming IPOs and lots more.
2.3.6 Margin trading
It enables not just stock trading but also gaining through it. we bring upto50% the margin

2.3.7 Primary debt


We offer primary debt instrument like bonds and various taxable and tax savings bond for
individual investor and corporate.

2.3.8 ACCOUNT TRANSACTIONS ALERTS


Get alerted on all critical activities in your account. We will remind you for all due MF SIP and Auto
invest
2.3.9 TRADE CONFIRMATION SMS
Get confirmation on every trade executed. Only fully traded orders are communicated. Partial orders are
communicated at the end of the day.
2.3.10 PORTFOLIO MANAGEMENT SERVICES
Managing investment in equities requires time, experience and constant monitoring of stock market.
Those who need an expert to help manage their investment, portfolio management service (PMF) comes
to an answer.

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2.4 AREA OF OPERACTIONS


A Kotak security is Indias leading retail brokering house. It was originally established in 1994. Today it
serves more than 7.4 lakh customers with the wide network of more than 1416 branches, franchisees,
representative offices, and satellite offices around 448 cities. It also has international presence through its
branches in New York, London, Dubai, Mauritius and Singapore.
2.5 OWNERSHIP PATTERN
The major share holder of Kotak co is Mr. Uday Suresh Kotak, Kotak trustee co, Indra Suresh Kotak,
Pallav Kotak and their key employee. The key promoter of the co is Mr. Uday Suresh Kotak who
individually own 41.15% of total share capital. Mr Uday S Kotak, along with relatives and companies
control by him holds 45.32% of equity share capital of KMBL.
TABLE SHOWING MANAGEMENT TEAM
Mr. Uday S. Kotak
D. Kannan
C. Jayaram
Nayrayan S.A.
Trivikram Kamath
Sandeep Chordia

Chairman
Managing Director
Director
Director
Executive Vice President
Company Secretary

2.6 COMPETITORS INFORMATIONS

Anand Rathi Securities limited

Sharekhan

Karvy

India bulls

India info line

Reliance Securities

Angel broking

Motilal Oswal Securities

IL&FS Invest mart Limited

Geojit

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2.7 INFRASTRUCTURE FACILITIES


Kotak securities Outlets are designed to be placed where retail investors can come in touch with
investment opportunities in an atmosphere of convenience and comfort.
Any Kotak securities outlets minimum area is of 300-500sq feet.
Workstation ( computer/laptop) with ISDN/VSAT connectivity, required to set up a trading
terminal and back office system

2.8 ACHIEVMENTS AND AWARDS


1. Best Broker in India by Finance Asia for 2010 & 2009
2. UTIMF CNBC TV18 Financial Advisor Award Best Performing Equity Broker (National) for
the year 2009
3. Best Brokering Firm in India by Asia money in 2009, 2008, 2007 & 2006
4. Best Performing Equity Broker in India CNBC Financial Advisor Award 2008
5. Avaya Customer Responsiveness Awards ( 2007 &2006 ) in Financial Service sector
6. The leading Equity House in India in Thomas Extel Surveys Awards for the year 2007
7. Euromoney Award (2005)- Best Equity house in India
8. Finance Asia Award (2005)- Best Broker in India
9. Finance Asia Award (2004)- Indias best Equity House

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2.9 WORK FLOW MODEL


The client

Place the order


Execute the order

The dealer

Buy

Sell

The clients make the


payment either directly via
his Demat A/C or pay by
cheque to the dealer.

The dealer takes the


delivery of the shares to be
sold from the client.

The A/cs back office


transfers the amount to the
sellers broker.

The dealer receives the


amount of shares sold from
the buyer broker.

The dealer receives the


delivery in the name of the
client from the sellers
broker.

The A/cs back


office deposits the
amount in the
sellers Demat A/c

Simultaneously, the
dealer then makes
the delivery of the
shares to the buyers
broker.

Transaction is settled
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2.10 FUTURE GROWTH AND PROSPECTUS


At Kotak Securities, we are always looking for individuals with the desire, drive and creativity to find
solutions that help meet our clients needs individuals who want the opportunity to learn and grow with
the organization. We place a premium on high performance, quality service and the ability to execute
strategy.
Above all, we are committed to serve our clients, so seek employees with the highest ethical standards,
who want to make a difference in peoples lives.

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Mc KINSEYS
7S MODEL

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3.McKINSEYS 7S MODEL

McKinsey 7s model is devloped by a well known business consultants Robert H. Waterman and Tom
Peters in 1980. The 7s are structure, system, strategy, skill, style, staff and shared value.
The model is most often used as a tool to assess and moniter changes in the internal situation of an
organization. The main objective of the model is to analyze how well an organizaction is positioned to
achive its objective. The 7s are the elements out of which Strategy, Structure, System are hard elements
and shared value, Skills, Style and Staff are soft elements.

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Structure
A part of Kotak securities operations is handled by its sub broker, INVEST RIGHT FINANCIAL
SERVICES Pvt Ltd. It has started its operation in Gulbarga 2003 later at Bangalore and then at yadgir.

Head office
(Gulbarga)
(

Franchise manager

Branch manager
Bangalore

Dealing

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Branch manager
GULBARGA

Back office

Branch manager
Yadgir

Front office

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Strategy
The company strongly believes in being competitive strategy. Thus it always strives hard to be on par
with the growing firms in the stock broking industry. Kotak Securities has many unique strategies to deal
with their clients in particular. It strongly sticks to SEBI guidelines as to avoid any fraudulent activities to
happen. It is focusing on more customers through advertisement.

System
At Kotak there are lot of systems used which increases the efficiency of working and in turn acts as
added advantage when compared to the competing firms. Some of unique system are:

ODIN system of trading


BOSS ledger system to support the back office works
CITRIX system
BASS (Business Associate Support System)

Skill
As this is a stock broking unit the skill of the broker is the most important as it would benefit both
the investor as well as the unit.
Some of important skills needed to be an efficient broker are: Basic computer knowledge
Communication ,mathematical and analytical skill
Capacity of independent work
Extensive knowledge of financial industry
Understanding economic conditions and skills
Networking in order to recruit clients
Maturity and confidence in dealing with people
Aptitude for financial and research writing

Style

the management style that makes organization unique are as follows:


The company provides of margin finance
The investment in IPOs and mutual funds can be done on phone
Special alerts even before the actual depositary transaction takes place
Also there is facility of tracking the portfolio through mobile.

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Staff
In any organization the human resource hold the strongest position thus understanding the staff is an
important step in developing the framework.
At Kotak securities the following is the staff which takes care of all the functions:

Front end staff


Back end staff
Sales staff
Dealing staff
Risk handling staff
IPO (initial public offering) staff.

Shared values

The company believes in simplifying investments process for the customer


Believes in providing long term values to the customer
The entire process that takes place at Kotak is totally transparent.
Kotak provides a better value for the investment made ,as there are no hidden costs
involved while executing orders
Kotak play legally safe as it goes with SEBI guidelines

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SWOT
ANALYSIS

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4. SWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses,
Opportunities and Threats involved in a business or in a project. A SWOT analysis can be
carried out for a product, place or a person. It involves specifying the objective of the business
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venture or project and identifying the internal and external factors that are favorable or
unfavorable to achieve the objective. First two Strengths and weaknesses are internal factors and
other two Opportunities and Threats are external factors. Setting the objective should be done
after the SWOT analysis has been performed.
Strength: Characteristics of the business or project that give it advantage over others.
Weaknesses: Characteristics that place the team at a disadvantage relative to other.
Opportunities: Element that the project could exploit to its advantage.
Threats: Element in the environment that could cause trouble for the business or project.

4.1 STRENGTHS
Kotak Security Limited is one of the largest player in distribution of IPOs

Highly co-operative and skilled staff

Sales oriented organization

The company has expertise in managing big business

Effective and wider distribution network more than 1416 branches, franchisees,
representative offices across India and offices in New York, London, Dubai, Mauritius
and Singapore

The company has a presence in all metros as well as in most of the major cities in the
country

4.2 WEAKNESS

No presence in rural and semi- Urban segment

Lack of corporate agent

Lack of customer services and promotional activities

4.3 OPPORTUNITIES

There is continuous growth in the sector

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People have started turning toward the organization as they know that facilities are far
better than the other

Scope of taking its business in rural and semi-urban area

4.4 THREATS

The Indian capital market is fluctuating


Competition in the sector is increasing with the entry of lots of private giants with the
collaboration of foreign giants

Uncertainty of the market and volatility and fluctuations in stock prices

Change in customer needs, Preference and taste.

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ANALYSIS
OF
FINANCIAL
STATEMENT

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5. ANALYSIS OF FINANCIAL STATEMENT


5.1 BALANCE SHEET FOR LAST THREE YEARS
2011-2012
(Rs in Lacs)

2010-2011
(Rs in Lacs)

2009-2010
(Rs in Lacs)

EQUITY AND
LIABILITIES
Shareholders Funds
Share Capital
Reserves and Surplus

160.00

160.00

160.00

181,817.08

169,234.91

151,041.12

1887.88

1668.74

841.03

18703.11

19289.54

Loan funds
Secured loan
Unsecured loan
CURRENT LIABILITY
AND PROVISION
Current liability

81270.4

90233.28

115505.09

Provision

3095.77

3703.48

4256.33

268231.13

283703.52

291093.11

Total

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ASSETS

2011-2012
(Rs in Lacs)

2010-2011
(Rs in Lacs)

2009-2010
(Rs in Lacs)

Fixed assets

7039.99

7323.95

7455.03

Deferred tax assets

2160.07

3269.59

3722.98

80630.60

77227.75

57377.26

Stock in trade

25753.85

2777.91

1926.81

Trade receivable

44882.33

37574.70

53504.49

7396.48

11484.96

8579.30

98497.77

141868.07

157019.71

1870.04

2176.59

1507.53

268231.13

283703.52

291093.11

Investment
Current assets

Loan and advances


Cash and bank balance
Other current assets
Total

INTERPRETATION
CURRENT RATIO:
Current ratio defines the ability of the firm to meet its current liability. The current asset should
be sufficient enough to meet the current liabilities. In the year 2009-2010 the current ratio was
1.86:1; in 2010-2011 it was 2.09:1; and in the year 2011-2012 it was 2.11:1. It is always
beneficial to have a considerably higher current ratio. It is cleared from the balance sheet that
firm has enough current assets to meet its short term liabilities. The ideal current ratio is 2:1.

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2011-12

2010-11

2009-10

178400.47/84366.17=2.11:1

195882.23/93936.76=2.09

222537.84/119761.42=1.86

Financial highlight
(Rs in Lakhs expect per share data)
31 March 31st March 31st March
2012
2011
2010
st

Gross income

61159.89

73755.35

83786.39

Profit / loss before depreciation and tax

20609.22

28942.49

42345.93

Depreciation

1460.37

1785.23

1958.31

Profit / loss before tax

19148.86

27157.26

40387.62

Provision for tax

5461.23

8963.47

14377.58

Profit / loss after tax

12582.10

18193.79

26010.04

Transfer from debentures redemption reserve

7836.25

8828.04

Balance brought forward from previous year

149602.62

127386.34

99812.93

Amount available for appropriation

162184.72

153416.38

134651.01

Transfer to debenture redemption reserve

3813.76

7264.67

Profit / loss carried forward to the balance sheet

162184.72

149602.62

127386.34

Earnings per share on equity shares of Rs. 10 each

786.38

1137.11

1625.63

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PART B

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TITLE OF THE PROJECT:PORTFOLIO EVALUATION A STUDY CONDUCTED AT KOTAK SECURITIES


6.1 Statement of the problem:Ideally investor would like to earn maximum return on his investment with minimum risk as
Possible; he can achieve this by assessing how much is truly securities are worth and
Comparing it with current market price to see if it is trading in market below its real worth
Or above it before committing funds for investment. Only with help of this investor can decide
as to buy or sell securities .This is called security valuation. Further investor should invest in
diversified collection of securities of 10 -20 .The fundamental idea of this concept is to reduce
security risk.
The portfolio is always considered to be best comparing to investment in individual securities it
offers better combination of risk and return.

This study deals with constructing portfolio for various risk class of investors on basis of security
valuation.
6.2 Definition of portfolio Management:
It is a process of encompassing many activities of investment in asset and securities .The
Portfolio management includes the planning, supervision, timing, rationalism and conservatism
in the selection of securities to meet investors objectives .it is the process of selecting a list of
securities that will provide the investors with a maximum yield constant with the risk he wishes
to assume.
The portfolio management is growing rapidly serving broad array of investors both individual
and institutional with investment portfolio ranging in asset size from few thousand s to cores of
rupees.
Despite growing importance ,the subject of portfolio and investment is new in the country and is
largely misunderstood .In most cases ,portfolio management has been practiced as investment
management counseling in which the investor has been advised to seek assets that would grow in
values and /or provide income.
Portfolio management is concerned with efficient management of investment in the

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Securities. An investment is defined as the current commitment of funds for a period of time in
order to derive a future that will compensate the investing unit
For the time the funds are committed
For the expected rate of inflation, and
For the uncertainty involved in the future flow of fund.
The portfolio management deals with the process of selection of securities from the number of
opportunities available with different expected return and carrying different levels of risk and the
selection of securities is made with a view to provide the investors the maximum yield for a
given level of risk for a given level of returns.

Investors invest his funds in a portfolio expecting to get good return consistent with tghe risk that
he has to bear. The return realized from the portfolio has to be measured and the performance of
the portfolio has to be evaluated.

It is evident that rational investment activity involves creation of an investment portfolio.


Portfolio management comprises all the process involved in the creation and maintenance of an
investment portfolio. It deals specially with security analysis, portfolio analysis use of analytical
technique of analysis and conceptual theories regarding rational allocation of funds. Portfolio
management is a complex process. Which tries to make investment activity more rewarding and
less risky?
6.3 Objective of the study:

To determine the risk and return involved in the select shares


To compare the performance of select sectors and its shares with the market index
To evaluate the portfolio performance of select shares

Sources of data collection:In order to fulfill the objective of the study, the data is collected from both the primary and
secondary sources.
(a)Primary data:
The fresh data collected by the researcher concerned with the research problem refers to the
primary data .Personal discussion was made with unit Manager and interaction with other
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personnel in the organization for this purpose .there is no formal design of questionnaire used in
the study.
(b)Secondary Data:
The information available at various sources made for other purpose but facilitating the study
undertaken is called as secondary data.

Various text book were used to understand the concepts of risk and return
Websites of the company
Newspapers such as economic times, Business standard.

Limitation of the study: The study only covers only the banking sector, infrastructure sector, auto sector and
cement industry sector.
The project is based on the information provided by the employee of the organization
and other primary organizational documents.
The project is limited by the period of the study.
The data is collected is for a period of three year only.
The project is based on secondary data.

6.4 Theoretical background:Many investors mistakenly base the success of their portfolios on returns alone .Few consider the
risk that they took to achieve those returns .Since the 1960s, investors have known how to
quantify and measure risk with variability of returns , but no single measure actually looked at
both risk and return together .Today, we have three sets of performance measurement tools to
assist us with our portfolio evaluation .The Treynor ,Sharpe and Jensen ratios combine risk and
return performance in to a single value , but each is slightly different.
The concepts of returns:Returns can be defined as the amount or rate or produce, proceeds, gain profit which accrues to
an economic agent from an undertaking or enterprise or real financial investment. It is a reward
for and a motivating force behind investment, the objective of which is usually to maximize
return.
The basic one, which is periodic cash or income receipts, either interest or dividend the order
which is the appreciation or depreciation in the price of value of the asset is called the capital
gain or capital loss.
Return= (Todays price yesterdays price)/ yesterdays price
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Beta
The sensitive of a security to market movements is called beta (). A measure of risk commonly
advocated is beta .It represent the most widely accepted measure of the extent to which the return
on security fluctuates with the return on market portfolio .It describes the relationship between
with the securities return and the index returns. To calculate the beta of a portfolio, regress the
rate of return of the portfolio on the rate of market index. The slope of the regression line is the
beta.

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RESEARCH
METHODOLOGY

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7. RESEARCH METHODOLOGY
SHARPES INDEX (SI)
It is the measure of risk premium related to the total risk. It gives a single value to be used for the
performance ranking of various funds or portfolios. The risk premium is the difference between
portfolios average rate of return and the risk free rate of return. The standard deviation of
portfolio indicates the risk .It assigns the highest values to assets that have best risk adjusted
rate of return.
The sharpe ratio is versatile measure that has endured that test of time .Its focus is on the
standard deviation as the measure of risk does bias it against portfolios that are diversified
widely across the market .A sector specific mutual fund (such as banking fund and pharma) will
tend to poorly on a sharpe ratio basis because its standard deviation will be higher because of the
presence of sector specific .Since investors in these funds can diversify the risk by only way of
holding multiple funds , it does seem unfair to penalize these funds for them.
Sharpes Index SI given by the formula

Si =
Where,
Ri: Average rate of portfolio
Rf: Average rate of return on a risk free investment
p: Standard deviation of return of portfolio.
TREYNORS INDEX (TI)
IT measures the funds performance in relation to the market performance. To understand it
better one must know about the characteristics line .the relationship between the given market
return and the fund return is given by the characteristics line. The ideal funds return rises at a
faster rate than the general market performance when the market is moving upwards and its rate
of return declines slowly than the market return, in the decline
Treynor (1965) was the first researcher developing a composite measure of portfolio
Performance .He measures portfolio risk with beta, and calculates portfolios market risk
premium relative to its beta.

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Treynors Index(TI) given by the formula

(TI) =
Where
Ri : Average rate of return of portfolio.
Rf : Average rate of return on a risk free investment.
p : Beta of portfolio.

JENSENS INDEX
The absolute risk adjusted return measure was developed by Michel Jensen and commonly
Known as jensens measure .It is mentioned as measure of absolute performance because a
definite standard is set and against that the performance is measured. The standard is based on
the managers predictive ability. Successful prediction of the security price would enable the
manager to earn higher returns than the ordinary investor expects to earn in a given level of risk.
The basic model of Jensen is
Jensen index =Ri-(Rf+(Rm-Rf))
Where
Ri : Average rate of return of portfolio
Rf : Average rate of return on a risk free investment
p : Beta of portfolio
Rm : Average rate of return of market M

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(1)Planning of portfolio
Planning is the most important element in a proper portfolio management. The success of the
portfolio management will depend upon the careful planning. While making the plan, due
consideration will be given to the investors financial capability and current capital market
situation. After taking into consideration a set of investment and speculative policies are
prepared in the written form. It is called as statement of investment policy .The document must
contain
1. The portfolio objective
2. Applicable strategies
3. Investment and speculative constraints.

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The planning document must clearly define the asset allocation. It means an optimal combination
of various assets in an efficient market. The portfolio manager must keep in mind about the
difference between basic pure investment portfolio and actual portfolio returns. The statement of
investment policy may contain these elements. The portfolio planning comprises the following
situation for its better performance:
(A)Investor Condition: - The first question which must be answered is this What is the
purpose of the security portfolio? While this question might seem obvious , it is too often
overlooked , giving way instead to the excitement of selecting the securities which are to be held
Understanding the purpose for trading in financial securities will help to: (1) define the expected
portfolio liquidation, (2) aid in determining an acceptable level or risk , and (3) indicate whether
future consumption (liability needs) are to be paid in normal or real money, etc For example : a
60 year old woman with small to moderate saving probably (1)has a short investment horizon,
(2) can accept little investment risk, and (3) needs protection against short term inflation. In
contrast a young couple investing couple investing for achievement in 30 years has (1) a very
long investment horizon , (2) an ability to accept moderate to large investment risk because they
can diversify over time , and (3) a need for protection against long term inflation. This suggests
that the 60 year old woman solely in low default risk money market securities. The young couple
could invest in many other classes for diversification and accept greater investment risks. In
short, knowing the eventual purpose of the portfolio investment makes it possible to begin
sketching out appropriate investment / speculative policies.
(B) Market condition: - The portfolio owner must know the latest development in the market.
He may be in position to access the potential of future return on various capital market
instruments. The investors expectation may be two types, long term expectation and short term
expectation The most important investment decision in portfolio construction is asset allocation.
Asset allocation means the investment strategies are static. The portfolio requires changes
according to investors needs and knowledge. A continues changes in portfolio leads to higher
operating cost. Generally the potential volatility of equity and debt market is 2 to 3 years.
Another types of rebalancing strategy focuses on the level of prices of a given financial asset.
(c)Speculative Policies:- the portfolio owner may accept the speculative strategies in order to
reach his goals of earning to maximum extent. If no speculative strategies are used the
management of the portfolio is relatively easy. Speculative strategies may be categorized as asset
allocation timing decision. Small investor can do by purchasing mutual funds which are indexed
to a stock. Organization with large capital can employ investment management firms to make
their speculative trading decisions.
(d)Strategic Asset Allocation: - The most important investment decision which the owner of
portfolio must make is the portfolios asset allocation refers to the percentage invested in various
security classes. Security classes are simply the two types of securities: (1) Money Market

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investment, (2) Fixed Income obligation; (3) Equity Shares, (4) Real Estate Investment, (5)
International securities.

Strategic asset allocation represents the asset allocation which would be optimal for the investor
if all security prices trade at their long term equilibrium values that is, if the markets are
efficiency priced.
(2) Implementation of portfolio plan
In the implementation stage, three decisions to be made, if the percentage holding of various
assets classes are currently different from the desired holdings as in the SIP (Strategic Asset
Allocation). If the statement of investment policy requires a pure investment strategy, this is the
only thing, which is done in the implementation stage. However, many portfolio owners engage
in speculative transaction in the belief that such transaction will generate access risk-adjusted
returns. Such speculative transactions are usually classified as timing or selection decisions.
Timing decisions over or under weight various assets classes, industries, or economic sectors
from the strategic asset allocation. Such timing decision deal with securities within a given asset
class, industry group, or economic sector and attempt to determine which securities should be
over or under-weighted.
(A)Tactical Asset Allocation: - if one believes that the price levels of certain asset classes,
industry, or economic sectors are temporarily too high or too low, actual portfolio holdings
should depart from the asset mix called for in the strategic asset allocation. Such timing decision
is preferred to as tactical asset allocation.
As noted TAA decision could be made across aggregate asset classes, industry classification
(steel, food), or various broad economic sector (basic manufacturing, interest-sensitive,
consumer durables)
Traditionally, most tactical asset allocation has involved timing across aggregate asset classes.
For example, if equity prices are believes to be too high, one would reduce the portfolios equity
allocation and increase allocation to, say, risk-free securities. If one is indeed successful. At
tactical asset allocation, the abnormal returns, which would be earned, are certainly entering.
(B) Security Selection: -The second type of active speculation involves the selection of securities
within a given asset class, industry, or economic sector. The strategic asset allocation policy
would call for broad diversification through an indexed holding of virtually all securities in the
asset in the class. For example- if the total market value of HPS Corporation share currently
represent.1% of all issued capital equity capital, than 1% of the investors portfolio allocated to
equity would be held in HPS corporation shares. The only reason to overweight or underweight
particular securities in the asset allocation would be to offset risks the investors faces in other
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assets and liabilities outside the marketable security portfolio. Security, however, actively
overweight and underweight holding of particular securities in the belief that they are
temporarily mispriced.

(3) Monitoring the performance of portfolio


Portfolio monitoring is a continuous and on-going assessment of present portfolio and the
portfolio manager shall incorporate the latest development which occurred in capital market. The
portfolio manager should take in to consideration of investors preferences, capital market
condition and expectations. Monitoring the portfolio is up-grading activity in asset composition
to take the advantage of economic, industry and market conditions. The market would reflect the
stock market, which in turns affects the portfolio. The continues revision of a portfolio depends
upon the following factors
1.
2.
3.
4.
5.

Change in government policy.


Shifting from one industry to other
Shifting from one company scrip to Another Company scrip.
Shifting from one financial instrument to another.
The half yearly / yearly results of the corporate sector.

Risk reduction is an important factor in portfolio. It will be achieved by a diversification of the


portfolio, changes in market prices may have necessitated in asset composition. The composition
has to be changed to maximize the returns to reach the goals of investor.
STOCK SELECTION CRITERIA
Stock selection criteria are methods for a selecting a stocks for investment. The stock investment
or position can be long (to benefit from a stock price increase) or short (to benefit from a
decrease in a stocks price), depending on the investors expectation of how the stock price is
going to move. The stock selection criteria may include systematic stock picking methods that
utilize computer software and/or data.

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ANALYSIS AND
INTERPRETATION

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8. ANALYSIS AND INTERPRETATION


Table 1:- Infrastructure sector 3 year average return of stock, respective benchmark
index and Risk free of 3 year (DLF INFRASTRUCTURE)
SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
361.15
332.8
297.15
308.9
311.25
276.35
288.2
301.3
301.75
377.3
350.1
307.25
291.95
223.9
212.05
267.2
222.9
238.55
210.55
230.9
196.35
218.65
242.05
207.1
183.05
215.9
226.35
201.5
186.9
184.8
198.4
208.3
195.95
233.8
202.7
210.1
230.5

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-7.84992
-10.7121
3.954232
0.760764
-11.2129
4.288041
4.545455
0.149353
25.03728
-7.20912
-12.2394
-4.97966
-23.3088
-5.29254
26.00802
-16.5793
7.021086
-11.7376
9.665163
-14.9632
11.35727
10.70204
-14.4392
-11.6127
17.94592
4.840204
-10.9786
-7.24566
-1.1236
7.359307
4.989919
-5.92895
19.31615
-13.302
3.650715
9.709662
-19.4146

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.289
0.0336
6.5093
25.6070
113.122
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.531

49.74969
-4.68813
26.43174
0.13429
39.21466
19.13831
4.298446
0.085951
292.2924
1.321191
31.22658
-25.1987
247.9103
14.5645
236.657
26.36806
-23.2134
-21.7322
-33.2672
125.0235
-15.1862
81.38518
128.9819
48.15087
201.8859
15.74022
21.55062
3.554928
7.138306
54.97066
-5.54818
-6.65194
147.7485
18.24571
16.46329
4.358325
1729.105

53.44961
103.4928
20.18913
1.689386
113.9311
23.30032
25.85168
0.47383
654.1462
44.49047
136.8984
19.71945
518.4631
22.59616
704.7441
257.2925
57.1549
125.4082
104.1249
208.0572
141.5212
126.3609
193.2146
122.6279
341.6921
28.93583
108.9847
44.97926
0.341752
62.38326
30.56895
29.05155
394.2271
162.8933
17.55371
105.0351
5105.845
Page 45

N=

36.00

0.442

-0.539

= *(N*Rxy)-(Rx*Ry)]
/*(N*Rx2)(Rx)2]=

1.64

=x-*y =

1.32

mean= Ry/N =

-0.539

SD = *(Ry-Rmean)]/ (N-1)=

12.07

CV =(SD*100)/ mean =

-2238.

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Page 46

JAIPRAKASH ASSOCIATED INFRASTRUCTURE


SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
146.9
137.7
132.25
149.65
147.4
124.9
128.45
118.25
108.95
120.7
120.25
110.25
105.9
83.35
77.5
92.5
92.7
86.5
80.85
66.7
61.2
72.8
77.15
62.1
52.4
69.85
76
81.6
74.65
62.05
73.5
73.35
64.85
82.2
87.25
96.15
97

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-6.26276
-3.95788
13.1569
-1.50351
-15.2646
2.842274
-7.94083
-7.86469
10.78476
-0.37283
-8.31601
-3.94558
-21.2937
-7.0186
19.35484
0.216216
-6.68824
-6.53179
-17.5015
-8.24588
18.95425
5.975275
-19.5075
-15.62
33.30153
8.804581
7.368421
-8.51716
-16.8788
18.45286
-0.20408
-11.5883
26.75405
6.143552
10.20057
0.884035
-11.83

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.531

39.6909
-1.73215
87.94623
-0.2654
53.38477
12.68559
-7.50931
-4.52604
125.9044
0.068326
21.21684
-19.9659
226.4778
19.31441
176.1172
-0.34387
22.11291
-12.0937
60.23987
68.89765
-25.3443
45.43984
174.2558
64.76633
374.6317
28.63228
-14.464
4.178762
107.2324
137.8344
0.226914
-13.0014
204.6406
-8.42683
46.00058
0.396812
1994.62

29.363
9.696245
196.0252
0.434951
207.9533
13.58861
50.36504
49.29014
135.2281
0.222006
55.83091
9.619788
418.1891
38.12564
407.9931
1.124058
34.15516
32.35098
277.4738
54.78778
391.9706
46.50251
348.3245
218.3292
1165.917
93.09512
67.44386
58.87734
257.1138
372.3688
0.409496
115.4395
761.6522
48.82589
121.9826
2.986106
6093.056

Page 47

N=

36.00

0.442

-0.329

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

1.063

mean= Ry/N =

-0.329

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.89

13.19

-4010.39

Page 48

L&T INFRASTRUCTURE
SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
1,679.40
1,425.05
1,566.85
1,626.35
1,608.35
1,628.60
1,804.55
1,797.10
1,812.45
2,044.70
2,021.85
1,949.85
1,979.05
1,641.15
1,528.05
1,653.25
1,597.90
1,644.00
1,822.65
1,725.95
1,609.80
1,358.20
1,413.25
1,268.80
995.1
1,310.60
1,308.10
1,306.85
1,226.30
1,172.30
1,397.35
1,369.65
1,341.40
1,596.75
1,624.75
1,667.10
1,605.85

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-15.1453
9.950528
3.797428
-1.10677
1.259054
10.80376
-0.41285
0.854154
12.81415
-1.11752
-3.5611
1.497551
-17.0738
-6.89151
8.193449
-3.34795
2.885037
10.86679
-5.30546
-6.72963
-15.6293
4.053159
-10.2211
-21.5716
31.70536
-0.19075
-0.09556
-6.16368
-4.40349
19.1973
-1.98232
-2.06257
19.03608
1.753562
2.606555
-3.67404
14.58762

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

4.354811
25.3836
-0.19537
-4.40329
48.21916
-0.39041
0.491556
149.596
0.204805
9.085509
7.578105
181.5961
18.96468
74.55536
5.324637
-9.53861
20.11996
18.26126
56.22877
20.89838
30.82283
91.30305
89.44391
356.6753
-0.62032
0.187578
3.024076
27.97578
143.3951
2.204101
-2.31409
145.6062
-2.40528
11.75454
-1.64915
232.1736
1753.912

91.11329
11.50721
2.286062
0.729067
108.13
0.669198
0.20156
153.982
2.318686
15.7315
1.193231
305.5171
53.24196
60.65683
14.08614
6.14959
109.4448
32.61166
50.90576
257.1043
13.3076
112.9187
482.9781
979.6998
0.355159
0.250759
43.15013
23.1235
353.1432
5.700269
6.089892
347.1098
1.81808
4.845963
16.64024
201.1409
3869.852

Page 49

N=

36.00

0.442

0.4052

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-0.226

mean= Ry/N =

0.4052

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.65

10.51

2593.36

Page 50

RELAIANCE INFRASTRUCTRE
SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
952.75
885
817.1
810.3
829.8
773.9
982.65
862.2
843.8
859
861
712.15
717.95
568.45
637.75
630.5
631.4
567.35
535.2
515.2
408.7
397
417.7
350.65
288.3
436.95
493.4
433.6
418.8
387.05
421.8
387.75
386.65
436.95
399.5
432.55
444.1

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-7.11099
-7.67232
-0.83221
2.406516
-6.73656
26.97377
-12.2577
-2.13408
1.801375
0.232829
-17.288
0.814435
-20.8232
12.19105
-1.13681
0.142744
-10.1441
-5.6667
-3.73692
-20.6716
-2.86274
5.214106
-16.0522
-17.7813
51.56087
12.9191
-12.12
-3.41328
-7.58118
8.978168
-8.07255
-0.28369
13.00918
-8.57077
8.272841
2.670212
-45.7616

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

45.06665
-3.35776
-5.56285
0.424798
23.55975
120.3889
-11.5916
-1.22814
21.02976
-0.04267
44.10739
4.121312
221.4736
-33.5484
-10.3443
-0.22702
33.53887
-10.4919
12.86239
172.7195
3.827852
39.65142
143.3907
73.72788
580.0437
42.01259
23.79118
1.674655
48.16396
67.06281
8.975681
-0.31828
99.5067
11.75614
37.30727
1.198564
1804.671

34.10554
40.97685
0.192535
13.52412
29.87238
797.767
120.7069
0.7449
9.439487
2.261501
256.5455
4.34904
382.2876
181.2267
0.018007
1.998672
78.73233
19.32214
6.080765
376.3827
2.533622
42.0566
218.4836
272.5888
2791.207
201.3589
117.7004
4.589381
39.81843
105.0454
46.26103
0.974785
203.9236
53.28671
91.0849
15.53315
6562.981

Page 51

N=

36.00

0.442

-1.271

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

2.628

mean= Ry/N =

-1.271

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.72

13.69

1007.38

Page 52

STOCK
NAME
DLF

STOCK
RETURN

MARKET
RETURN

Rf

-0.539

0.422

7.39

JAIPRAKASH
ASSOCIATED
L&T

-0.329

0.422

7.39

0.4052

0.422

7.39

RELIANCE

-1.279

0.422

7.39

8
7
6
5
STOCK RETURN

MARKET RETURN

Rf

2
1
0
-1

DLF

JAIPRAKASH
ASSOCIATED

L&T

RELIANCE

ANALYSIS:It can be seen that in the infrastructure sectors no one have the better returns then the
market rate of returns all the companies have the less returns then the market rate of
returns.

INTERPRETATION:In the infrastructure sectors no one is preferred form of investment in terms of average rate
of returns.
Infrastructure Company should not be preferred right now as an investment in terms of rate
of returns.
RNS INSTITUTE OF TECHNOLOGY

Page 53

Table 2:- Cement Industry sector 3 year average return of stock , respective benchmark
index and Risk free of 3 years.
ACC CEMENT

SL
.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

STOCK
SENSEX
PRICE
MONTH INDEX(X) (Y)
Dec-09

17,464.81

871.5

Jan-10

16,357.96

870.75

Feb-10

16,429.55

922.95

Mar-10

17,527.77

950.45

Apr-10

17,558.71

906.15

May-10

16,944.63

817

Jun-10

17,700.90

874.5

Jul-10

17,868.29

831.45

Aug-10

17,971.12

871.8

Sep-10

20,069.12

990.75

Oct-10

20,032.34

984.2

Nov-10

19,521.25

987.45

Dec-10

20,509.09

1,075.60

Jan-11

18,327.76

988.15

Feb-11

17,823.40

971.05

Mar-11

19,445.22

1,075.20

Apr-11

19,135.96

1,108.25

May-11

18,503.28

1,026.60

Jun-11

18,845.87

949.25

Jul-11

18,197.20

1,012.05

Aug-11

16,676.75

1,002.55

Sep-11

16,453.76

1,098.15

Oct-11

17,705.01

1,195.25

Nov-11

16,123.46

1,145.05

Dec-11

15,454.92

1,136.35

Jan-12

17,193.55

1,189.90

Feb-12

17,752.68

1,304.90

Mar-12

17,404.20

1,356.35

Apr-12

17,318.81

1,234.65

May-12

16,218.53

1,140.20

Jun-12

17,429.98

1,267.55

Jul-12

17,236.18

1,319.60

Aug-12

17,429.56

1,312.45

Sep-12

18,762.74

1,469.20

Oct-12

18,505.38

1,379.30

Nov-12

19,339.90

1,383.95

Dec-12

19,426.71

1,429.40

TOTAL
RNS INSTITUTE OF TECHNOLOGY

INDEX
-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

STOCK Rx2
-0.09
5.99
2.98
-4.66
-9.84
7.04
-4.92
4.85
13.64
-0.66
0.33
8.93
-8.13
-1.73
10.73
3.07
-7.37
-7.53
6.62
-0.94
9.54
8.84
-4.20
-0.76
4.71
9.66
3.94
-8.97
-7.65
11.17
4.11
-0.54
11.94
-6.12
0.34
3.28

57.61

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

Rxy
0.545405
2.623616
19.91674
-0.82275
34.40754
31.41164
-4.6553
2.792828
159.2861
0.12116
-0.84249
45.17375
86.47369
4.762165
97.5955
-4.8887
24.3586
-13.9503
-22.7712
7.843126
-12.7505
67.24136
37.51731
3.150387
53.01366
31.42929
-7.73966
4.40222
48.60078
83.42802
-4.56575
-0.6079
91.35391
8.393122
1.520313
1.474107
875.2418

(RiRmean)^2
2.842793
19.31455
1.903231
39.1995
130.8353
29.57123
42.54709
10.5818
145.0624
5.112642
1.612348
53.68543
94.67963
11.09227
83.27481
2.172224
80.41554
83.44055
25.15774
6.444941
62.97508
52.44864
33.63951
5.568619
9.687386
65.03903
5.488856
111.7801
85.56141
91.56754
6.281775
4.587439
106.9841
59.5826
1.594847
2.836119
1574.569
Page 54

N=

36.00

0.442

1.60

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-0.841

mean= Ry/N =

1.60

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

0.802

6.70

418.75

Page 55

AMBUJA CEMENT
SL
MONTH SENSEX
STOCK
.NO
INDEX(X) PRICE
(Y)
Dec-09
103.7
17,464.81
1
102.3
16,357.96
2 Jan-10
Feb-10
106.9
16,429.55
3
119.65
17,527.77
4 Mar-10
Apr-10
121.15
17,558.71
5
108.8
16,944.63
6 May-10
Jun-10
114.55
17,700.90
7
Jul-10
117.5
17,868.29
8
125.15
17,971.12
9 Aug-10
Sep-10
140.7
20,069.12
10
139.75
20,032.34
11 Oct-10
Nov-10
140.5
19,521.25
12
143.05
20,509.09
13 Dec-10
Jan-11
126.55
18,327.76
14
118
17,823.40
15 Feb-11
147.05
19,445.22
16 Mar-11
Apr-11
155.4
19,135.96
17
138.7
18,503.28
18 May-11
Jun-11
133.1
18,845.87
19
129.3
18,197.20
20 Jul-11
Aug-11
133.1
16,676.75
21
148.6
16,453.76
22 Sep-11
155.4
17,705.01
23 Oct-11
Nov-11
148.4
16,123.46
24
155.4
15,454.92
25 Dec-11
Jan-12
160.7
17,193.55
26
160.05
17,752.68
27 Feb-12
171.25
17,404.20
28 Mar-12
Apr-12
150.9
17,318.81
29
151.05
16,218.53
30 May-12
Jun-12
173.95
17,429.98
31
180.25
17,236.18
32 Jul-12
Aug-12
185.45
17,429.56
33
201.95
18,762.74
34 Sep-12
202.7
18,505.38
35 Oct-12
Nov-12
207.7
19,339.90
36
200.95
19,426.71
37 Dec-12
TOTAL

RNS INSTITUTE OF TECHNOLOGY

INDEX

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

STOCK

Rx2

-1.35005 40.1652
4.496579
0.1915
11.92703 44.6815
1.253656
0.0312
-10.194 12.2311
5.284926 19.9200
2.575295
0.8943
6.510638
0.3312
12.42509 136.2890
-0.6752
0.0336
0.536673
6.5093
1.814947 25.6070
-11.5344 113.1228
-6.75622
7.5729
24.61864 82.7988
5.678341
2.5294
-10.7465 10.9312
-4.03749
3.4281
-2.855 11.8472
2.938902 69.8128
11.64538
1.7879
4.576043 57.8306
-4.5045 79.7946
4.716981 17.1925
3.410553 126.5554
-0.40448 10.5753
6.997813
3.8533
-11.8832
0.2407
0.099404 40.3618
15.16054 55.7941
3.62173
1.2363
2.884882
1.2588
8.897277 58.5066
0.371379
1.8814
2.4667 20.3366
-3.24988
0.2015
76.71852 1066.53

Rxy

8.556067
1.967911
79.7253
0.221295
35.65134
23.5876
2.435348
3.746799
145.0541
0.123741
-1.36923
9.184232
122.6792
18.59239
224.0146
-9.03093
35.53034
-7.47545
9.826824
-24.5557
-15.5714
34.79918
40.23776
-19.5584
38.36766
-1.31536
-13.7365
5.830245
-0.63152
113.2423
-4.02692
3.236671
68.05491
-0.5094
11.12385
-1.45876
936.55

(RiRmean)^2

12.1177
5.595963
95.96229
0.769732
151.905
9.947252
0.197398
19.18123
105.9683
7.874733
2.54188
0.09989
186.7439
78.98273
505.6941
12.58363
165.829
38.05028
24.86016
0.652705
90.52342
5.978236
44.02992
6.687298
1.637257
6.428661
23.68587
196.3981
4.127384
169.769
2.222277
0.568338
45.7825
3.096266
0.112694
28.95387
2055.559

Page 56

N=

36.00

.442

2.13

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-1.372

mean= Ry/N =

2.13

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

0.8519

7.66

359.62

Page 57

J.K LAXMI CEMENT


STOCK
SL
SENSEX
PRICE
(Ri.NO MONTH INDEX(X) (Y)
INDEX
STOCK
Rx2
Rxy
Rmean)^2
1 Dec-09
17,464.81
70.35
2 Jan-10
-6.3376 -3.69581 40.1652 23.42255 44.12688
16,357.96
67.75
3 Feb-10
0.437646 8.708487
0.1915 3.811237 33.19473
16,429.55
73.65
4 Mar-10
6.684419
-1.90088
44.6815
-12.7063 23.50197
17,527.77
72.25
5 Apr-10
0.17652 0.346021
0.0312 0.06108 6.765093
17,558.71
72.5
6 May-10
-3.4973 -13.7931 12.2311 48.23856 280.2311
16,944.63
62.5
7 Jun-10
4.463184
0.8 19.9200 3.570547 4.609609
17,700.90
63
8 Jul-10
0.945658
-2.61905
0.8943 -2.47672 30.98089
17,868.29
61.35
9 Aug-10
0.575489 -3.50448
0.3312 -2.01679 41.62163
17,971.12
59.2
10 Sep-10
11.67429 9.966216 136.2890 116.3485
49.2694
20,069.12
65.1
11 Oct-10
-0.18327
-5.52995
0.0336
1.013456
71.85875
20,032.34
61.5
12 Nov-10
-2.55132 -12.6829
6.5093 32.35826 244.2946
19,521.25
53.7
13 Dec-10
5.060332 2.793296 25.6070
14.135 0.023625
20,509.09
55.2
14 Jan-11
-10.6359
-14.4022
113.1228
153.1803
300.9938
18,327.76
47.25
15 Feb-11
-2.75189 -6.66667
7.5729 18.34594 92.42259
17,823.40
44.1
16 Mar-11
9.099386 15.75964 82.7988 143.403 164.1637
19,445.22
51.05
17 Apr-11
-1.59042
0
2.5294
0 8.684809
19,135.96
51.05
18 May-11
-3.30624
-7.05191
10.9312
23.31528
99.9782
18,503.28
47.45
19 Jun-11
1.85151 -7.27081
3.4281
-13.462 104.4037
18,845.87
44
20 Jul-11
-3.44197 0.568182 11.8472 -1.95567 5.658776
18,197.20
44.25
21 Aug-11
-8.35541 -11.0734 69.8128 92.52314 196.5729
16,676.75
39.35
22 Sep-11
-1.33713 6.480305
1.7879 -8.66502 12.48424
16,453.76
41.9
23 Oct-11
7.604645 3.221957 57.8306 24.50184 0.075601
17,705.01
43.25
24 Nov-11
-8.93278 -5.08671 79.7946 45.43843 64.54042
16,123.46
41.05
25 Dec-11
-4.14638 -9.62241 17.1925 39.89818 157.9901
15,454.92
37.1
26 Jan-12
11.24969 27.35849 126.5554 307.7744 595.9209
17,193.55
47.25
27 Feb-12
3.251975 27.08995 10.5753 88.09584 582.8819
17,752.68
60.05
28 Mar-12
-1.96297 8.576187
3.8533 -16.8348 31.68774
17,404.20
65.2
29 Apr-12
-0.49063 0.153374
0.2407 -0.07525 7.804345
17,318.81
65.3
30 May-12
-6.35309 -6.35528 40.3618 40.3757 86.53247
16,218.53
61.15
31 Jun-12
7.469543
10.22077 55.7941 76.34447 52.90771
17,429.98
67.4
32 Jul-12
-1.11188 30.48961
1.2363 -33.9007 758.5956
17,236.18
87.95
33 Aug-12
1.121942 9.209778
1.2588 10.33284 39.22239
17,429.56
96.05
34 Sep-12
7.64896
18.74024
58.5066
143.3433 249.4264
18,762.74
114.05
35 Oct-12
-1.37165 8.768084
1.8814 -12.0268 33.88502
18,505.38
124.05
36 Nov-12
4.509607
10.8424 20.3366 48.89498 62.33738
19,339.90
137.5
37 Dec-12
0.448865 17.27273
0.2015 7.753119 205.2265
19,426.71
161.25
TOTAL
15.9158 106.1101 1066.53 1402.36 4744.875
RNS INSTITUTE OF TECHNOLOGY

Page 58

N=

36.00

.442

2.95

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-3.33

mean= Ry/N =

2.95

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.28

11.64

394.57

Page 59

ULTRATECH CEMENT
SL
SENSEX
STOCK
.NO MONTH INDEX(X) PRICE (Y)
1 Dec-09
17,464.81
915.1
2 Jan-10
16,357.96
929.4
3 Feb-10
16,429.55
1,038.10
4 Mar-10
17,527.77
1,156.30
5 Apr-10
17,558.71
972.35
6 May-10
16,944.63
922.9
7 Jun-10
17,700.90
878.1
8 Jul-10
17,868.29
864.35
9 Aug-10
17,971.12
904.3
10 Sep-10
20,069.12
1,066.90
11 Oct-10
20,032.34
1,096.05
12 Nov-10
19,521.25
1,125.90
13 Dec-10
20,509.09
1,082.15
14 Jan-11
18,327.76
999
15 Feb-11
17,823.40
929.7
16 Mar-11
19,445.22
1,133.80
17 Apr-11
19,135.96
1,086.80
18 May-11
18,503.28
1,026.20
19 Jun-11
18,845.87
933.5
20 Jul-11
18,197.20
1,028.80
21 Aug-11
16,676.75
1,070.40
22 Sep-11
16,453.76
1,137.60
23 Oct-11
17,705.01
1,152.45
24 Nov-11
16,123.46
1,143.90
25 Dec-11
15,454.92
1,160.45
26 Jan-12
17,193.55
1,211.25
27 Feb-12
17,752.68
1,404.10
28 Mar-12
17,404.20
1,506.95
29 Apr-12
17,318.81
1,423.10
30 May-12
16,218.53
1,416.50
31 Jun-12
17,429.98
1,511.25
32 Jul-12
17,236.18
1,635.95
33 Aug-12
17,429.56
1,693.40
34 Sep-12
18,762.74
1,967.55
35 Oct-12
18,505.38
1,994.75
36 Nov-12
19,339.90
1,954.50
37 Dec-12
19,426.71
1,982.15
TOTAL
RNS INSTITUTE OF TECHNOLOGY

INDEX
-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

STOCK

Rx2

Rxy

1.562671 40.1652 -9.90358


11.69572
0.1915 5.118587
11.38619 44.6815 76.11004
-15.9085
0.0312 -2.80817
-5.08562 12.2311 17.78591
-4.85426 19.9200 -21.6655
-1.56588
0.8943 -1.48079
4.62197
0.3312 2.659892
17.98076 136.2890 209.9125
2.732215
0.0336 -0.50072
2.723416
6.5093 -6.94832
-3.88578 25.6070 -19.6633
-7.68378 113.1228 81.72403
-6.93694
7.5729 19.0897
21.95332 82.7988 199.7617
-4.14535
2.5294 6.592836
-5.576 10.9312 18.43558
-9.03333
3.4281 -16.7253
10.20889 11.8472 -35.1387
4.043546 69.8128 -33.7855
6.278027
1.7879 -8.39454
1.30538 57.8306 9.926949
-0.7419 79.7946 6.627211
1.446805 17.1925
-5.999
4.377612 126.5554 49.24676
15.92157 10.5753 51.77655
7.324977
3.8533 -14.3787
-5.56422
0.2407 2.729966
-0.46378 40.3618 2.946413
6.689022 55.7941 49.96394
8.251447
1.2363
-9.1746
3.511721
1.2588 3.939948
16.18932 58.5066 123.8315
1.38243
1.8814 -1.89622
-2.0178 20.3366 -9.09947
1.414684
0.2015 0.635002
89.53856 1066.53 741.2526

(RiRmean)^2
0.854385
84.80048
79.19552
338.3945
57.34453
53.89415
16.42584
4.558098
240.0566
0.06013
0.055892
40.61233
103.4447
88.81059
378.9375
43.98809
65.01202
132.7179
59.6276
2.422835
14.37189
1.396226
10.42578
1.082006
3.574414
180.4876
23.40602
64.82213
8.707081
17.65699
33.22885
1.050053
187.7537
1.220075
20.29319
1.149861
2361.84
Page 60

N=

36.00

0.442

2.48

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-1.199

mean= Ry/N =

2.48

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

0.662

8.21

331.23

Page 61

STOCK NAME

STOCK
RETURN

MARKET
RETURN

Rf

ACC CEMENT
AMBUJA
CEMENT
J.K CEMENT
ULTRATECH

1.60

0.422

7.39

2.13

0.422

7.39

2.95

0.422

7.39

2.48

0.422

7.39

8
7
6
5
RETURN

MARKET RETURN

RISK FREE RATE

2
1
0
ACC CEMENT

AMBUJA CEMENT

J.K CEMENT

ULTRATECH

ANALYSIS:It can be seen that in the cement industry sectors J.K CEMENT HAVE better returns then other
three Company ACC CEMENT, AMBUJA CEMENT and ULTRATECH CEMENT.
INTERPRETATION:In the cement industry sector JK CEMENT is preferred form of investment in terms of average
rate of return. But investor can also invest In other three company because those companies
return is also greater then the market returns.

RNS INSTITUTE OF TECHNOLOGY

Page 62

Table 3:- Automobile sectors 3 year average return of stocks, respective benchmark index and
Risk free 0f 3 years.
ASHOK LEYLAND
STOCK
SL
SENSEX
PRICE
.NO MONTH INDEX(X) (Y)
1 Dec-09
17,464.81
64.65
2 Jan-10
16,357.96
73.9
3 Feb-10
16,429.55
70.35
4 Mar-10
17,527.77
82.15
5 Apr-10
17,558.71
96.45
6 May-10
16,944.63
104.35
7 Jun-10
17,700.90
119.3
8 Jul-10
17,868.29
138.7
9 Aug-10
17,971.12
142.1
10 Sep-10
20,069.12
71.7
11 Oct-10
20,032.34
73.1
12 Nov-10
19,521.25
82
13 Dec-10
20,509.09
70.65
14 Jan-11
18,327.76
54.45
15 Feb-11
17,823.40
50.75
16 Mar-11
19,445.22
60
17 Apr-11
19,135.96
56.35
18 May-11
18,503.28
54.15
19 Jun-11
18,845.87
53.65
20 Jul-11
18,197.20
49.35
21 Aug-11
16,676.75
55.3
22 Sep-11
16,453.76
61
23 Oct-11
17,705.01
68.8
24 Nov-11
16,123.46
59.25
25 Dec-11
15,454.92
51.9
26 Jan-12
17,193.55
52.4
27 Feb-12
17,752.68
47.2
28 Mar-12
17,404.20
41
29 Apr-12
17,318.81
41
30 May-12
16,218.53
34
31 Jun-12
17,429.98
36.45
32 Jul-12
17,236.18
37.9
33 Aug-12
17,429.56
39.15
34 Sep-12
18,762.74
42.25
35 Oct-12
18,505.38
38.8
36 Nov-12
19,339.90
38.95
37 Dec-12
19,426.71
41.8
TOTAL
RNS INSTITUTE OF TECHNOLOGY

INDEX

STOCK

Rx2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

14.30781 40.1652
-4.80379
0.1915
16.77328 44.6815
17.40718
0.0312
8.190772 12.2311
14.32678 19.9200
16.26153
0.8943
2.451334
0.3312
-49.5426 136.2890
1.95258
0.0336
12.1751
6.5093
-13.8415 25.6070
-22.9299 113.1228
-6.79522
7.5729
18.2266 82.7988
-6.08333
2.5294
-3.90417 10.9312
-0.92336
3.4281
-8.01491 11.8472
12.05674 69.8128
10.30741
1.7879
12.78689 57.8306
-13.8808 79.7946
-12.4051 17.1925
0.963391 126.5554
-9.92366 10.5753
-13.1356
3.8533
0
0.2407
-17.0732 40.3618
7.205882 55.7941
3.978052
1.2363
3.298153
1.2588
7.918263 58.5066
-8.16568
1.8814
0.386598 20.3366
7.317073
0.2015
-3.13133 1066.53

Rxy
-90.6772
-2.10236
112.1196
3.072714
-28.6456
63.94308
15.37784
1.410715
-578.374
-0.35784
-31.0626
-70.0424
243.8809
18.69972
165.8509
9.675034
12.90811
-1.70961
27.58712
-100.739
-13.7824
97.23972
123.9943
51.43611
10.83785
-32.2715
25.78479
0
108.4674
53.82464
-4.42311
3.700338
60.56647
11.20049
1.743405
3.284376
272.4179

(RiRmean)^2
207.2106
22.2481
284.2689
306.0464
68.52152
207.7572
267.2743
6.443139
2445.854
4.159887
150.3592
189.1853
521.7997
45.00028
335.388
35.95601
14.57079
0.6995
62.85178
147.4704
108.0438
165.7369
190.2693
151.7347
1.103322
96.75996
170.2658
0.007569
288.53
53.18613
16.52465
11.45926
64.08424
65.26508
0.224295
54.8203
6761.08
Page 63

N=

36.00

0.442

-0.086

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

0.464

mean= Ry/N =

-0.086

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

0.258

13.89

-16081.39

Page 64

BAJAJ AUTO
STOCK
SL
SENSEX
PRICE
.NO MONTH INDEX(X) (Y)
1 Dec-09
17,464.81
1,761.70
2 Jan-10
16,357.96
1,773.10
3 Feb-10
16,429.55
1,817.40
4 Mar-10
17,527.77
2,011.10
5 Apr-10
17,558.71
2,094.30
6 May-10
16,944.63
2,214.70
7 Jun-10
17,700.90
2,483.30
8 Jul-10
17,868.29
2,688.05
9 Aug-10
17,971.12
2,729.40
10 Sep-10
20,069.12
1,471.60
11 Oct-10
20,032.34
1,513.80
12 Nov-10
19,521.25
1,575.35
13 Dec-10
20,509.09
1,541.50
14 Jan-11
18,327.76
1,248.65
15 Feb-11
17,823.40
1,268.30
16 Mar-11
19,445.22
1,459.80
17 Apr-11
19,135.96
1,462.80
18 May-11
18,503.28
1,344.35
19 Jun-11
18,845.87
1,405.90
20 Jul-11
18,197.20
1,464.85
21 Aug-11
16,676.75
1,573.00
22 Sep-11
16,453.76
1,534.35
23 Oct-11
17,705.01
1,733.15
24 Nov-11
16,123.46
1,672.85
25 Dec-11
15,454.92
1,592.80
26 Jan-12
17,193.55
1,600.95
27 Feb-12
17,752.68
1,798.95
28 Mar-12
17,404.20
1,677.90
29 Apr-12
17,318.81
1,623.10
30 May-12
16,218.53
1,513.00
31 Jun-12
17,429.98
1,572.00
32 Jul-12
17,236.18
1,601.35
33 Aug-12
17,429.56
1,615.40
34 Sep-12
18,762.74
1,832.50
35 Oct-12
18,505.38
1,813.95
36 Nov-12
19,339.90
1,930.55
37 Dec-12
19,426.71
2,131.00
TOTAL

RNS INSTITUTE OF TECHNOLOGY

INDEX

STOCK

Rx2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

0.647102 40.1652
2.498449
0.1915
10.65808 44.6815
4.137039
0.0312
5.748938 12.2311
12.12805 19.9200
8.245077
0.8943
1.53829
0.3312
-46.0834 136.2890
2.867627
0.0336
4.065927
6.5093
-2.14873 25.6070
-18.9977 113.1228
1.5737
7.5729
15.09895 82.7988
0.205508
2.5294
-8.09748 10.9312
4.578421
3.4281
4.193044 11.8472
7.383008 69.8128
-2.45709
1.7879
12.95663 57.8306
-3.47921 79.7946
-4.78525 17.1925
0.511678 126.5554
12.36766 10.5753
-6.72893
3.8533
-3.26599
0.2407
-6.78332 40.3618
3.899537 55.7941
1.867048
1.2363
0.877385
1.2588
13.4394 58.5066
-1.01228
1.8814
6.427961 20.3366
10.38305
0.2015
44.45817 1066.53

Rxy
-4.10108
1.093437
71.24309
0.73027
-20.1057
54.12973
7.797024
0.885269
-537.991
-0.52554
-10.3735
-10.8733
202.0583
-4.33065
137.3912
-0.32684
26.77219
8.47699
-14.4323
-61.688
3.285449
98.53054
31.07906
19.84145
5.756212
40.21931
13.20869
1.602387
43.09503
29.12776
-2.07593
0.984375
102.7974
1.388496
28.98758
4.660586
268.3182

(RiRmean)^2
0.345624
1.596303
88.79449
8.421833
20.37563
118.6586
49.14118
0.091985
2239.03
2.665471
8.014147
11.44962
409.3633
0.114717
192.2091
1.059855
87.09526
11.17846
8.750022
37.79801
13.63152
137.3965
22.22382
36.24337
0.523195
123.936
63.4241
20.25889
64.29339
7.099759
0.399485
0.127889
148.9473
5.05026
26.96684
83.68685
4050.363

Page 65

N=

36.00

0.442

1.23

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=

0.234

=x-*y =

0.154

mean= Ry/N =

1.23

SD = *(Ry-Rmean)]/ (N-1)=

10.75

CV =(SD*100)/ mean =

873.98

RNS INSTITUTE OF TECHNOLOGY

Page 66

MARUTI SUZUKI
SL
.NO

MONTH SENSEX
INDEX(X)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
1,559.65
1,390.10
1,463.55
1,416.15
1,279.75
1,236.95
1,423.60
1,198.15
1,255.90
1,440.95
1,551.20
1,423.75
1,420.60
1,252.80
1,206.70
1,263.55
1,319.75
1,227.50
1,158.45
1,207.90
1,092.35
1,081.40
1,125.65
968.65
920.05
1,187.55
1,256.25
1,349.10
1,369.90
1,106.45
1,169.75
1,133.05
1,138.55
1,349.90
1,436.25
1,473.55
1,488.95

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-10.871
5.283793
-3.2387
-9.63175
-3.3444
15.08953
-15.8366
4.819931
14.73445
7.651202
-8.21622
-0.22125
-11.8119
-3.67976
4.711196
4.447786
-6.98996
-5.62525
4.268635
-9.56619
-1.00243
4.091918
-13.9475
-5.01729
29.07451
5.78502
7.391045
1.541769
-19.2313
5.721
-3.13742
0.485415
18.56308
6.39677
2.597041
1.045095
12.3302

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

68.89624
2.312432
-21.6488
-1.7002
11.69637
67.34737
-14.976
2.773816
172.0142
-1.40221
20.96224
-1.11958
125.6305
10.12629
42.86899
-7.07383
23.11046
-10.4152
-14.6925
79.9294
1.340375
31.11758
124.59
20.8036
327.0791
18.81274
-14.5084
-0.75644
122.1784
42.73325
3.488429
0.544608
141.9883
-8.77416
11.71164
0.469106
1377.458

125.7432
24.41637
12.825
99.48562
13.59326
217.475
261.7636
20.04739
207.1283
53.41713
73.25168
0.31781
147.7297
16.17855
19.0855
16.85337
53.76497
35.61409
15.41453
98.18212
1.808826
14.05813
204.204
28.72737
825.5282
29.62102
49.68198
1.438245
383.1349
28.92826
12.10986
0.020425
331.9897
36.65419
5.082955
0.49364
3465.769

Page 67

N=

36.00

0.442

0.3425

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

0.001

mean= Ry/N =

0.3425

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.294

9.95

2905.39

Page 68

TATA MOTORS

SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
495.1
417.65
413.2
453.75
600.35
515.2
499.75
604.6
724.7
793.6
840.3
802.8
786.1
699.7
600.85
695.5
681.05
624.4
541.8
546.3
429.55
87.9
107.1
95.55
86.65
117.95
153
157.8
180.55
136.1
132.3
129.55
137.45
161.05
156.85
162.85
173.7

INDEX

STOCK

Rx2

Rxy
(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-15.6433
-1.06549
9.81365
32.30854
-14.1834
-2.99884
20.98049
19.86437
9.507382
5.884577
-4.46269
-2.08022
-10.991
-14.1275
15.75268
-2.07764
-8.31804
-13.2287
0.830565
-21.371
-79.5367
21.843
-10.7843
-9.3145
36.12233
29.71598
3.137255
14.41698
-24.6192
-2.79206
-2.07861
6.098032
17.16988
-2.60789
3.825311
6.662573
11.6525

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

99.14102
-0.46631
65.59855
5.7031
49.60352
-13.3844
19.84037
11.43172
110.9919
-1.07845
11.38578
-10.5266
116.899
38.8773
143.3398
3.304316
27.5014
-24.4931
-2.85878
178.5637
106.351
166.1083
96.33393
38.62144
406.3649
96.63564
-6.15834
-7.07339
156.4082
-20.8554
2.311159
6.84164
131.3317
3.577119
17.25065
2.990594
2026.413

254.942
1.929558
90.06104
1023.036
210.4528
11.03858
426.7071
381.8418
84.34186
30.92446
22.90859
5.778347
128.0195
208.8338
238.0566
5.765963
74.67791
183.6648
0.257013
470.6575
6377.671
463.0847
123.3857
92.89288
1281.549
863.9121
7.916654
198.6235
622.1442
9.707366
5.770609
33.34406
283.7971
8.593609
12.26198
40.18258
14278.73

Page 69

N=

36

0.442

0.323

1.90

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
-0.1717

=x-*y =
20.19

SD = *(Ry-Rmean)]/ (N-1)=

6250.77

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

Page 70

STOCK NAME

STOCK
RETURN

MARKET
RETURN

Rf

ASHOK
LEYLAND
BAJAJ AUTO
MARUTI SUZUKI
TATA MOTORS

-0.086

0.422

7.39

1.23

0.422

7.39

0.3245

0.422

7.39

0.323

0.422

7.39

8
7
6
5
RETURN

MARKET RETURN

RISK FREE RATE


2
1
0
-1

ASHOK
LEYLAND

BAJAJ AUTO

MARUTI
SUZUKI

TATA MOTORS

ANALYSIS:It can be seen that in automobile sector BAJAJ AUTO have better returns than market and
ASHOK LEYLAND, MARUTISUZUKI and TATA MOTORS have lesser returns then the
market.

INTERPRETATION:-In the automobile sectors BAJAJ AUTO is the preferred from the
investment in terms of average rate of return.
ASHOK LEYLAND should not be preferred right now as an investment in terms of rate of
return.

RNS INSTITUTE OF TECHNOLOGY

Page 71

Table 4:-Banking sector 3 years average return of stock, respective benchmark index and risk
free of 3 year.
BANK OF BARODA

SL
.NO

MONTH

SENSEX
INDEX(X)

STOCK
PRICE (Y)

INDEX

STOCK

Rx2

(RiRmean)^2

Rxy

Dec-09

17,464.81

511.3

Jan-10

16,357.96

575.9

-6.3376

11.21723

40.1652

-71.0903

136.62162

Feb-10

16,429.55

583.9

0.437646

-1.3701

0.1915

-0.59962

0.8078371

Mar-10

17,527.77

639.25

6.684419

-8.65858

44.6815

-57.8776

67.031623

Apr-10

17,558.71

691.55

0.17652

-7.56272

0.0312

-1.33497

50.288257

May-10

16,944.63

710.4

-3.4973

-2.65343

12.2311

9.279846

4.7617117

Jun-10

17,700.90

701.95

4.463184

1.203789

19.9200

5.372734

2.8059264

Jul-10

17,868.29

753.05

0.945658

-6.78574

0.8943

-6.41699

39.872127

Aug-10

17,971.12

804.9

0.575489

-6.44179

0.3312

-3.70718

35.646798

10

Sep-10

20,069.12

872.8

11.67429

-7.77956

136.2890

-90.8208

53.410664

11

Oct-10

20,032.34

1,011.00

-0.18327

-13.6696

0.0336

2.505188

174.19602

12

Nov-10

19,521.25

937.75

-2.55132

7.81125

6.5093

-19.929

68.600640

13

Dec-10

20,509.09

896.5

5.060332

4.601227

25.6070

23.28373

25.730530

14

Jan-11

18,327.76

869.15

-10.6359

3.146753

113.1228

-33.4686

13.090304

15

Feb-11

17,823.40

870.85

-2.75189

-0.19521

7.5729

0.537201

0.0762248

16

Mar-11

19,445.22

963.15

9.099386

-9.58314

82.7988

-87.2007

83.025603

5.591186

2.5294

-8.89231

36.753732

17

Apr-11

19,135.96

912.15

-1.59042

18

May-11

18,503.28

863.4

-3.30624

5.646282

10.9312

-18.6679

37.424811

19

Jun-11

18,845.87

871.9

1.85151

-0.97488

3.4281

-1.805

0.2535952

20

Jul-11

18,197.20

878.3

-3.44197

-0.72868

11.8472

2.508099

0.0662446

21

Aug-11

16,676.75

736.6

-8.35541

19.23704

69.8128

-160.733

388.41846

22

Sep-11

16,453.76

763.85

-1.33713

-3.56745

1.7879

4.770154

9.5861717

23

Oct-11

17,705.01

771.5

7.604645

-0.99157

57.8306

-7.54057

0.2706859

24

Nov-11

16,123.46

700.6

-8.93278

10.1199

79.7946

-90.3988

112.17345

25

Dec-11

15,454.92

660.85

-4.14638

6.014981

17.1925

-24.9404

42.071837

26

Jan-12

17,193.55

753.45

11.24969

-12.2901

126.5554

-138.26

139.68479

27

Feb-12

17,752.68

803.8

3.251975

-6.264

10.5753

-20.3704

33.555327

1.278901

3.8533

-2.51045

3.0632045

28

Mar-12

17,404.20

793.65

-1.96297

29

Apr-12

17,318.81

766.95

-0.49063

3.481322

0.2407

-1.70804

15.623221

30

May-12

16,218.53

687

-6.35309

11.63755

40.3618

-73.9345

146.62435

31

Jun-12

17,429.98

732.5

7.469543

-6.2116

55.7941

-46.3978

32.951091

32

Jul-12

17,236.18

656.05

-1.11188

11.65308

1.2363

-12.9568

147.00047

33

Aug-12

17,429.56

632.25

1.121942

3.764334

1.2588

4.223365

17.940593

34

Sep-12

18,762.74

798.55

7.64896

-20.8252

58.5066

-159.291

414.28310

35

Oct-12

18,505.38

725.1

-1.37165

10.12964

1.8814

-13.8944

112.37987

36

Nov-12

19,339.90

763.05

4.509607

-4.97346

20.3366

-22.4284

20.269460

37

Dec-12

19,426.71

866.95

0.448865

-11.9845

0.2015

-5.37944

132.55477

15.9158

-16.977

253.3128

-270.203

2598.9151

TOTAL

RNS INSTITUTE OF TECHNOLOGY

Page 72

N=

36.00

.422

1.85

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-1.29

mean= Ry/N =

1.85

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

0.935

9.229

498.86

Page 73

BANK OF INDIA

SL
.NO

MONTH

SENSEX
INDEX(X)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
385
364.65
333.6
340.75
381.3
329.7
348.6
410.4
442.15
516.75
486.1
465.35
449.65
439.2
439.05
478.1
456.95
445.05
414.3
386.45
309.7
315.6
331.75
327.45
266.3
344.25
371.05
361
352.85
340.45
346.9
297.65
257.3
310.4
276.7
280.8
342.85

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

5.580694
9.307554
-2.09831
-10.6347
15.65059
-5.42169
-15.0585
-7.18082
-14.4364
6.305287
4.459009
3.491605
2.379326
0.034165
-8.16775
4.628515
2.673857
7.422158
7.206624
24.78205
-1.86946
-4.86812
1.313178
22.96282
-22.6434
-7.22275
2.783934
2.309763
3.642238
-1.85933
16.54628
15.6820
-17.107
12.1792
-1.46011
-18.0983
33.2144

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

-35.3682
4.073416
-14.026
-1.87723
-54.7347
-24.198
-14.2402
-4.13248
-168.534
-1.15555
-11.3764
17.66868
-25.3063
-0.09402
-74.3215
-7.36127
-8.8404
13.7422
-24.805
-207.064
2.499706
-37.0204
-11.7303
-95.2126
-254.731
-23.4882
-5.46478
-1.13324
-23.1395
-13.8883
-18.3974
17.5943
-130.85
-16.7057
-6.58454
-8.12369
-1268.33

21.70343
70.31752
9.122288
133.5566
216.9314
40.24236
255.3757
65.65571
235.8799
28.97978
12.51044
6.602868
2.123799
0.788252
82.62351
13.73825
3.069002
42.25205
39.4965
569.3018
7.792221
33.52553
0.15302
485.7979
555.3294
66.33689
3.466796
1.925887
7.399696
7.735771
244.1181
217.8601
325.0434
126.7258
5.674467
361.7716
4300.928

Page 74

N=

36.00

.422

0.922

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

1.53

mean= Ry/N =

0.922

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

-1.21

11.08

1201.73

Page 75

CANARA BANK
SL
MONTH SENSEX
.NO
INDEX(X)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

RNS INSTITUTE OF TECHNOLOGY

STOCK
PRICE
(Y)
390.75
390.45
391.95
410.35
429.55
408.2
448.85
478.45
514
582.65
719.75
738.55
660.4
602.1
610
626.15
631.1
544.6
524.3
460.6
426.6
443.75
469.25
430.1
363.6
470.85
510.15
473.65
436.85
403.4
412.4
365.75
317
431.15
401.75
464.8
495.5

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-0.07678
0.384172
4.694476
4.678933
-4.97032
9.958354
6.594631
7.430243
13.35603
23.53042
2.612018
-10.5815
-8.82798
1.312074
2.647541
0.790545
-13.7062
-3.72751
-12.1495
-7.38168
4.020159
5.746479
-8.3431
-15.4615
29.4967
8.346607
-7.15476
-7.76945
-7.65709
2.231036
-11.3118
-13.3288
36.00946
-6.81897
15.69384
6.604991
46.87165

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.2890
0.0336
6.5093
25.6070
113.1228
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

0.486572
0.168131
31.37985
0.825925
17.38267
44.44596
6.236266
4.276022
155.9221
-4.31234
-6.66411
-53.5461
93.8937
-3.61069
24.091
-1.2573
45.31602
-6.90151
41.81838
61.6769
-5.37548
43.69993
74.5271
64.10935
331.8286
27.14296
14.04458
3.811915
48.6462
16.66482
12.57737
-14.9541
275.4349
9.353276
70.77306
2.964748
1426.877

1.901022
0.842408
11.5089
11.40367
39.34197
74.93246
28.01194
37.55537
145.2997
494.1027
1.716147
141.2186
102.6166
0.000101
1.810481
0.261586
225.2469
25.29593
180.9437
75.40623
7.388391
19.75339
93.02797
281.0156
794.9411
49.62649
71.51676
82.29121
80.2653
0.863108
159.1088
214.0596
1204.608
65.95019
207.125
28.12172
4959.079

Page 76

N=

36.00

0.422

1.293

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=

1.327

=x-*y =

-1.29

mean= Ry/N =

1.293

SD = *(Ry-Rmean)]/ (N-1)=

11.90

CV =(SD*100)/ mean =

920.34

RNS INSTITUTE OF TECHNOLOGY

Page 77

SYNDICATE BANK
SL
MONTH
.NO

SENSEX
INDEX(X)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

17,464.81
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
20,509.09
18,327.76
17,823.40
19,445.22
19,135.96
18,503.28
18,845.87
18,197.20
16,676.75
16,453.76
17,705.01
16,123.46
15,454.92
17,193.55
17,752.68
17,404.20
17,318.81
16,218.53
17,429.98
17,236.18
17,429.56
18,762.74
18,505.38
19,339.90
19,426.71

Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
TOTAL

STOCK
PRICE
(Y)
95.95
85.65
83.6
86.05
93.25
91.9
92.05
104.9
108.5
114.6
139.1
137.8
128.3
106.55
114.2
121.95
116.9
116.95
117.45
119.75
101.25
104
108.25
99.65
68.5
96.25
109.8
111.05
103.15
92.5
106.75
98.9
93.95
108.2
117.6
127.65
128.15

RNS INSTITUTE OF TECHNOLOGY

INDEX

STOCK

Rx2

Rxy

(RiRmean)^2

-6.3376
0.437646
6.684419
0.17652
-3.4973
4.463184
0.945658
0.575489
11.67429
-0.18327
-2.55132
5.060332
-10.6359
-2.75189
9.099386
-1.59042
-3.30624
1.85151
-3.44197
-8.35541
-1.33713
7.604645
-8.93278
-4.14638
11.24969
3.251975
-1.96297
-0.49063
-6.35309
7.469543
-1.11188
1.121942
7.64896
-1.37165
4.509607
0.448865
15.9158

-10.7348
-2.39346
2.930622
8.367228
-1.44772
0.163221
13.9598
3.43184
5.62212
21.37871
-0.93458
-6.89405
-16.9525
7.179728
6.78634
-4.14104
0.042772
0.427533
1.95828
-15.4489
2.716049
4.086538
-7.94457
-31.2594
40.51095
14.07792
1.138434
-7.11391
-10.3248
15.40541
-7.35363
-5.00506
15.16764
8.687616
8.545918
0.391696
11.34166

40.1652
0.1915
44.6815
0.0312
12.2311
19.9200
0.8943
0.3312
136.289
0.0336
6.5093
25.6070
113.122
7.5729
82.7988
2.5294
10.9312
3.4281
11.8472
69.8128
1.7879
57.8306
79.7946
17.1925
126.5554
10.5753
3.8533
0.2407
40.3618
55.7941
1.2363
1.2588
58.5066
1.8814
20.3366
0.2015
1066.53

68.03261
-1.04749
19.58951
1.476982
5.063109
0.728485
13.2012
1.974985
65.63424
-3.918
2.384415
-34.8862
180.3049
-19.7578
61.75153
6.585981
-0.14141
0.791582
-6.74035
129.0814
-3.63171
31.07667
70.96714
129.6134
455.7355
45.78105
-2.23471
3.49029
65.59422
115.0713
8.176335
-5.61538
116.0167
-11.9164
38.53874
0.175819
1546.949

122.0971
7.335765
6.841478
64.83838
3.107186
0.023037
186.1807
9.714691
28.16552
443.6798
1.561449
51.97039
298.165
47.12449
41.87824
19.85631
0.074108
0.012664
2.70037
248.499
5.765038
14.2245
68.22054
996.9432
1615.714
189.418
0.678043
55.18874
113.2047
227.7203
58.80789
28.30299
220.601
70.10069
67.74802
0.005882
5316.47

Page 78

N=

36.00

0.422

0.315

= *(N*Rxy)-(Rx*Ry)] /*(N*Rx2)(Rx)2]=
=x-*y =

-0.0347

mean= Ry/N =

0.315

SD = *(Ry-Rmean)]/ (N-1)=

CV =(SD*100)/ mean =

RNS INSTITUTE OF TECHNOLOGY

1.45

12.32

3911.11

Page 79

STOCK NAME

STOCK
RETURN

MARKET RETURN Rf

BANK OF
BARODA
BANK OF INDIA

1.85

0.422

7.39

0.922

0.422

7.39

CANARA BANK

1.293

0.422

7.39

SYNDICATE BANK

0.315

0.422

7.39

6
5
4
RETURN

MARKET RETURN

RISK FREE RATE

1
0
BANK OF
BARODA

BANK OF
INDIA

CANARA
BANK

SYNDICATE
BANK

ANALYSIS:It can be seen that in the banking sector BANK OF BARODA, BANK OF INDIA and
CANARA BANK have better returns in the market.

INTERPRETATION:In the banking sectors BANK OF BARODA is the preferred form of investment in terms of
average return.
Syndicate bank should not be preferred right now as an investment in terms of rate of return

RNS INSTITUTE OF TECHNOLOGY

Page 80

Table 5:-3 year average return of stock, respective benchmark index and Risk free rate
INFRASTRUCTURE SECTORS
STOCK NAME

STOCK

MARKET

DLF INFRASTUCTURE

12.07

5.50

JAIPRAKASH ASSOCIATED
INFRASTRUCTURE

13.19

5.50

10.59

5.50

13.69

5.50

L&T
RELIANCE INFRASTRUCTURE

16
14
12
10
8

STOCK

MARKET

4
2
0
DLF

JAI PRAKASH
ASSOCIATED

L&T

RELIANCE

ANALYSIS:It can be seen that in the infrastructure sectors Reliance infrastructure have highest standard
deviation (13.69) and L&T have lowest standard deviation (10.59)
INTERPRETATION:Reliance infrastructure has a lot of variation to its return and is the least preferred investment in
term of standard deviation observed. Here Reliance infrastructure has to bear the risk of (13.69).
L&T here is the preferred investment in terms of standard deviation . here L&T has to bear the
risk of (10.59)

RNS INSTITUTE OF TECHNOLOGY

Page 81

Table 6:-3 year average return of stock, respective benchmark index and Risk free rate
CEMENT INDUSTRY SECTORS
STOCK NAME

STOCK

MARKET

ACC CEMENT

6.70

5.50

AMBUJA CEMENT
JK LAXMI CEMENT

7.66
11.64

5.50
5.50

ULTRATECH CEMENT

8.21

5.50

14
12
10
8
STOCK

MARKET

4
2
0
ACC CEMENT

AMBUJA
CEMENT

JK LAXMI
CEMENT

ULTRATECH
CEMENT

ANALYSIS:It can be seen that in the infrastructure sectors JK LAXMI CEMENT have highest standard
deviation (11.64) and ACC CEMENT have lowest standard deviation (6.70)
INTERPRETATION:JK LAXMI CEMENT has a lot of variation to its return and is the least preferred investment in
term of standard deviation observed. Here JK LAXMI CEMENT has to bear the risk of (11.64).
ACC CEMENT here is the preferred investment in terms of standard deviation .here ACC
CEMENT has to bear the risk of (6.70)

RNS INSTITUTE OF TECHNOLOGY

Page 82

Table 7:-3 year average return of stock, respective benchmark index and Risk free rate
AUTOMOBILE INDUSTRY SECTORS
STOCK

STOCK NAME

MARKET

ASHOK LEYLAND

13.89

5.50

BAJAJ AUTO

10.75

5.50

MARUTI SUZUKI

9.95

5.50

TATA MOTORS

20.19

5.50

25

20

15
STOCK
MARKET

10

0
ASHOK LEYLAND

BAJAJ AUTO

MARUTI SUZUKI TATA MOTORS

ANALYSIS:It can be seen that in the automobile sectors TATA MOTORS have highest standard deviation
(20.19) and MARUTI SUZUKI have lowest standard deviation (9.95)
INTERPRETATION:TATA MOTORS has a lot of variation to its return and is the least preferred investment in term
of standard deviation observed. Here Reliance infrastructure has to bear the risk of (20.19).
MARUTI SUZUKI here is the preferred investment in terms of standard deviation. MARUTI
SUZUKI here has to bear the risk of (9.95)

RNS INSTITUTE OF TECHNOLOGY

Page 83

Table 8:-3 year average return of stock, respective benchmark index and Risk free rate
BANKING SECTORS
STOCK

STOCK NAME
BANK OF BARODA
BANK OF INDIA
CANARA BANK
SYNDICATE BANK

9.23
11.08
11.90
12.32

MARKET
5.50
5.50
5.50
5.50

14
12
10
8
STOCK

MARKET

4
2
0
BANK OF
BARODA

BANK OF INDIA

CANARA BANK SYNDICATE BANK

ANALYSIS:It can be seen that in the Banking sectors SYNDICATE BANK have highest standard
deviation (12.32) and BANK OF BARODA have lowest standard deviation (9.23)
INTERPRETATION:SYNDICATE BANK has a lot of variation to its return and is the least preferred investment in
term of standard deviation observed. Here SYNDICATE BANK has to bear the risk of (12.32).
BANK OF BARODA here is the preferred investment in terms of standard deviation. Here
BANK OF BARODA has to bear the risk of (9.23)

RNS INSTITUTE OF TECHNOLOGY

Page 84

Table:-9 BETA FOR SELECTED STOCK


STOCK NAME

DLF INFRASTRUCTURE

1.69

JAIPRAKASH ASSOCIATED INFRASTRUCTURE

1.89

L&T INFRASTRUCTURE

1.65

RELIANCE INFRASTRUCURE

1.72

1.95
1.9
1.85
1.8

1.75
1.7
1.65
1.6
1.55
1.5
DLF

JP ASSOCIATED

L&T

RELIANCE

ANALYSIS:It can be seen that JP ASSOCIATED has the highest Beta value and L&T has the lowest Beta
value. It can be seen that if the market changes by 1% The JP ASSOCIATED will be affected the
most and will change by (1.89) and L&T will be affected the least and will change by (1.65)

INTERPRETATION:JP ASSOCIATED is the preferred form of investment in the infrastructure sector in terms of beta
as it shows here that the risk is more but it has better potential to yield good profits.
L&T the least preferred form of investment in the infrastructure sector in terms of Beta as it
shows here that the risk is less and the potential to yield good profits is also less.

RNS INSTITUTE OF TECHNOLOGY

Page 85

Table10:- Beta for selected stock


STOCK NAME

ACC CEMENT

0.802

AMBUJA CEMENT

0.8519

JK LAXMI CEMENT

1.28

ULTRATECH CEMENT

0.662

1.4
1.2
1
0.8

0.6
0.4
0.2
0
ACC CEMENT

AMBUJA CEMENT

JK LAXMI CEMENT ULTRATECH CEMENT

ANALYSIS:It can be seen that JK LAXMI has the highest Beta value and ULTRATECH has the lowest Beta
value. It can be seen that if the market changes by 1% The JK LAXMI will be affected the most
and will change by (1.28) and ULTRATECH will be affected the least and will change by
(0.662)

INTERPRETATION:JK LAXMI is the preferred form of investment in the cement industry sector in terms of beta as
it shows here that the risk is more but it has better potential to yield good profits.

ULTRATECH the least preferred form of investment in the cement industry sector in terms of
Beta as it shows here that the risk is less and the potential to yield good profits is also less.

RNS INSTITUTE OF TECHNOLOGY

Page 86

Table 11:- Beta for selected stock

STOCK NAME
ASHOK LEYLAND

0.258

BAJAJ AUTO

0.234

MARUTI SUZUKI

1.294

TATA MOTORS

1.90

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

ASHOK LEYLAND

BAJAJ AUTO

MARUTI SUZUKI

TATA MOTORS

ANALYSIS:It can be seen that TATA MOTORS has the highest Beta value and BAJAJ AUTO has the
lowest Beta value. It can be seen that if the market changes by 1% The TATA MOTORS will be
affected the most and will change by (1.90) and BAJAJ AUTO will be affected the least and will
change by (0.234)

INTERPRETATION:TATA MOTORS is the preferred form of investment in the automobile sector in terms of beta as
it shows here that the risk is more but it has better potential to yield good profits.

BAJAJ AUTO the least preferred form of investment in the automobile sector in terms of Beta as
it shows here that the risk is less and the potential to yield good profits is also less.
RNS INSTITUTE OF TECHNOLOGY

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Table 12:-Beta for selected stock


STOCK NAME

BANK OF BARODA

0.935

BANK OF INDIA

-1.21

CANARA BANK

1.327

SYNDICATE BANK

1.45

2
1.5
1
0.5

0
BANK OF BARODA

BANK OF INDIA

CANARA BANK

SYNDICATE BANK

-0.5
-1
-1.5

ANALYSIS:It can be seen that SYNDICATE BANK has the highest Beta value and BANK OF INDIA has
the lowest Beta value. It can be seen that if the market changes by 1% The SYNDICATE BANK
will be affected the most and will change by (1.45) and BANK OF INDIA will be affected the
least and will change by (-1.21)

INTERPRETATION:SYNDICATE BANK is the preferred form of investment in the banking sector in terms of beta
as it shows here that the risk is more but it has better potential to yield good profits.
BANK OF INDIA the least preferred form of investment in the banking sector in terms of Beta
as it shows here that the risk is less and the potential to yield good profits is also less.

RNS INSTITUTE OF TECHNOLOGY

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Table 13: Performance of portfolio evaluation of stock and ranking of stock by Sharpes method

INFRASTRUCTURE SECTOR

STOCK
NAME

Sharpes

MARKET

RANK

JAIPRAKASH -0.585
ASSOCIATED
RELIANCE
-0.633

-1.27

-1.27

DLF

-0.657

-1.27

L&T

-0.660

-1.27

5
4
3
Sharpe's

MARKET
1

RANK

0
-1

JAIPRAKASH
ASSOCIATED

RELIANCE

DLF

L&T

-2

ANALYSIS:It can be observed that according to Sharpes index in the infrastructure sectors .Jai Prakash
associated has the highest value and the Sharpes of L&T has the lowest value.
INTERPRETATION:It says that in accordance to Sharpes index, in the infrastructure sectors Jai Prakash associated
has the performed best and the L&T infrastructure performed least.

RNS INSTITUTE OF TECHNOLOGY

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Table 14: Performance of portfolio evaluation of stock and ranking of stock by Sharpes method

CEMENT INDUSTRY SECTOR


STOCK NAME

Sharpes

MARKET

RANK

J.K SUPER

-0.381

-1.26

ULTRATECH

-0.598

-1.26

AMB UJA

-0.686

-1.26

ACC

-0.864

-1.26

5
4
3
Sharpe's

MARKET
1

RANK

0
J.K SUPER

ULTRATECH

AMBUJA

ACC

-1
-2

ANALYSIS:It can be observed that according to Sharpes index in the cement industry sectors .J.K SUPER
cement has the highest value and the Sharpes of ACC has the lowest value.
INTERPRETATION:It says that in accordance to Sharpes index, in the cement industry sectors J.K super has the
performed best and the ACC cement performed least.

RNS INSTITUTE OF TECHNOLOGY

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Table 15: Performance of portfolio evaluation of stock and ranking of stock by Sharpes method

AUTOMOBILE SECTOR

STOCK
NAME

Sharpes

MARKET

RANK

TATA
MOTORS
ASHOK
LEYLAND

-0.350

-1.26

-0.538

-1.26

BAJAJ AUTO

-0.573

-1.26

MARUTI
SUZUKI

-0.710

-1.26

5
4
3
Sharpe's

MARKET
1

RANK

0
TATA MOTORS

ASHOK LEYLAND

BAJAJ AUTO

MARUTI SUZUKI

-1
-2

ANALYSIS:It can be observed that according to Sharpes index in the Automobile sectors .TATA MOTORS
has the highest value and the Sharpes of MARUTI SUZUKI has the lowest value.
INTERPRETATION:It says that in accordance to Sharpes index, in the automobile sector TATA MOTORS has the
performed best and the MARUTI SUZUKI performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 16: Performance of portfolio evaluation of stock and ranking of stock by Sharpes method

BANKING SECTOR

STOCK
NAME

Sharpes

MARKET

RANK

CANARA
BANK
SYNDICATE
BANK
BANK OF
INDIA
BANK OF
BARODA

-0.512

-1.26

-0.574

-1.26

-0.584

-1.26

-0.600

-1.26

5
4
3
Sharpe's

MARKET
1

RANK

0
CANARA BANK SYNDICATE BANK BANK OF INDIA BANK OF BARODA
-1
-2

ANALYSIS:It can be observed that according to Sharpes index in the Banking sectors .CANARA BANK
has the highest value and the Sharpes of BANK OF BARODA has the lowest value.
INTERPRETATION:It says that in accordance to Sharpes index, in the banking sectors CANARA BANK has the
performed best and the BANK OF BARODA performed least.

RNS INSTITUTE OF TECHNOLOGY

Page 92

Table 17: Performance of portfolio evaluation of stock and ranking of stock by Treynors method

INFRASTRUCTURE SECTOR

STOCK
NAME

Treynors

MARKET

RANK

JAIPRAKASH -4.08
ASSOCIATED
L&T
-4.45

-3.68

-4.22

DLF

-4.69

-4.12

RELIANCE

-5.04

-4.05

5
4
3
2
1

Treynors

0
-1
-2

JAIPRAKASH
ASSOCIATED

L&T

DLF

RELIANCE

MARKET
RANK

-3
-4
-5
-6

ANALYSIS:It can be observed that according to Treynors index in the infrastructure sectors .Jai Prakash
associated has the highest value and the Treynors of RELIANCE has the lowest value.

INTERPRETATION:It says that in accordance to Treynors index, in the infrastructure sectors Jai Prakash associated
has the performed best and the RELIANCE infrastructure performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 18: Performance of portfolio evaluation of stock and ranking of stock by Treynors method

CEMENT INDUSTRY SECTOR

STOCK
NAME

Treynors

MARKET

RANK

J.K SUPER

-3.46

-5.44

AMBUJA

-6.17

-8.18

ACC

-7.21

-8.69

ULTRATECH

-7.42

-10.52

6
4
2
0
-2

J.K SUPER

AMBUJA

ACC

ULTRATECH

Treynor's
MARKET

-4

RANK

-6
-8
-10
-12

ANALYSIS:It can be observed that according to Treynors index in the cement industry sectors .J.K SUPER
cement has the highest value and the Treynors of ULTRATECH has the lowest value.
INTERPRETATION:It says that in accordance to Treynors index, in the cement industry sectors J.K super has the
performed best and the ULTRATECH cement performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 19: Performance of portfolio evaluation of stock and ranking of stock by Treynors method

AUTOMOBILE SECTOR

STOCK
NAME

Treynors

MARKET

RANK

TATA
MOTORS
MARUTI
SUZUKI

-3.71

-3.67

-5.48

-5.40

BAJAJ AUTO

-26.32

-29.8

ASHOK
LEYLAND

-28.97

-27.0

10
5
0
-5

TATA MOTORS

-10

MARUTI SUZUKI

BAJAJ AUTO

ASHOK LEYLAND
Treynor's
MARKET

-15

RANK

-20
-25
-30
-35

ANALYSIS:It can be observed that according to Treynors index in the Automobile sectors .TATA
MOTORS has the highest value and the Treynors of ASHOK LEYLAND has the lowest value.
INTERPRETATION:It says that in accordance to Treynors index, in the automobile sector TATA MOTORS has the
performed best and the ASHOK LEYLAND performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 20: Performance of portfolio evaluation of stock and ranking of stock by Treynors method

BANKING SECTOR

STOCK
NAME

Treynors

MARKET

RANK

BANK OF
INDIA
CANARA
BANK
SYNDICATE
BANK
BANK OF
BARODA

5.34

5.75

-4.59

-5.25

-4.88

-4.80

-5.93

-7.45

8
6
4
2
Treynor's

0
-2

BANK OF INDIA

CANARA BANK SYNDICATE BANK

BANK OF
BARODA

MARKET
RANK

-4
-6
-8
-10

ANALYSIS:It can be observed that according to Treynors index in the Banking sectors .BANK OF
INDIA has the highest value and the Treynors of BANK OF BARODA has the lowest value.
INTERPRETATION:It says that in accordance to Treynors index, in the banking sectors BANK OF INDIA has the
performed best and the BANK OF BARODA performed least.

RNS INSTITUTE OF TECHNOLOGY

Page 96

Table 21: Performance of portfolio evaluation of stock and ranking of stock by Jensens method

INFRASTRUCTURE SECTOR

STOCK
NAME

JENSENS

MARKET

RANK

JAIPRAKASH 5.45
ASSOCIATED
L&T
4.51

0.000

0.000

DLF

3.81

0.000

RELIANCE

3.31

0.000

6
5
4
JENSEN'S

MARKET
2

RANK

1
0
JAIPRAKASH
ASSOCIATED

L&T

DLF

RELIANCE

ANALYSIS:It can be observed that according to Jensens index in the infrastructure sectors .Jai Prakash
associated has the highest value and the Jensens of RELIANCE has the lowest value.
INTERPRETATION:It says that in accordance to Jensens index, in the infrastructure sectors Jai Prakash associated
has the performed best and the RELIANCE infrastructure performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 22: Performance of portfolio evaluation of stock and ranking of stock by Jensens method

CEMENT INDUSTRY SECTOR

STOCK
NAME

JENSENS

MARKET

RANK

J.K SUPER

4.47

0.000

AMBUJA

0.676

0.000

ACC

-0.201

0.000

ULTRATECH

-0.297

0.000

5
4
3
JENSEN'S
2

MARKET
RANK

1
0
J.K SUPER

AMBUJA

ACC

ULTRATECH

-1

ANALYSIS:It can be observed that according to Jensens index in the cement industry sectors .J.K SUPER
cement has the highest value and the Jensens of ULTRATECH has the lowest value.
INTERPRETATION:It says that in accordance to Jensens index, in the cement industry sectors J.K super has the
performed best and the ULTRATECH cement performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 23: Performance of portfolio evaluation of stock and ranking of stock by Jensens method

AUTOMOBILE SECTOR

STOCK
NAME

JENSENs

MARKET

RANK

TATA
MOTORS
MARUTI
SUZUKI
BAJAJ AUTO

6.17

0.000

1.95

0.000

-4.52

0.000

ASHOK
LEYLAND

-5.67

0.000

8
6
4
2

JENSEN'S

MARKET
TATA MOTORS

MARUTI SUZUKI

-2

BAJAJ AUTO

ASHOK LEYLAND

RANK

-4
-6
-8

ANALYSIS:It can be observed that according to Jensens index in the Automobile sectors .TATA MOTORS
has the highest value and the Jensens of ASHOK LEYLAND has the lowest value.
INTERPRETATION:It says that in accordance to Jensens index, in the automobile sector TATA MOTORS has the
performed best and the ASHOK LEYLAND performed least.
RNS INSTITUTE OF TECHNOLOGY

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Table 24: Performance of portfolio evaluation of stock and ranking of stock by Jensens method

BANKING SECTOR

STOCK
NAME

JENSENs

MARKET

RANK

CANARA
BANK
SYNDICATE
BANK
BANK OF
BARODA
BANK OF
INDIA

3.14

0.000

3.02

0.000

0.975

0.000

-14.89

0.000

0
CANARA BANK SYNDICATE BANK
-5

BANK OF
BARODA

BANK OF INDIA
JENSEN'S
MARKET

-10

RANK

-15

-20

ANALYSIS:It can be observed that according to Jensens index in the Banking sectors .CANARA BANK has
the highest value and the Jensens of BANK OF INDIA has the lowest value.
INTERPRETATION:It says that in accordance to Jensens index, in the banking sectors CANARA BANK has the
performed best and the BANK OF INDIA performed least.
RNS INSTITUTE OF TECHNOLOGY

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FINDINGS AND
SUGGESTIONS

RNS INSTITUTE OF TECHNOLOGY

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FINDINGS
It can be seen that in the infrastructure sectors no one have the better returns then the
market rate of returns all the companies have the less returns then the market rate of
returns.
It can be seen that in the cement industry sectors J.K SUPER CEMENT HAVE better
returns then other three Company ACC CEMENT, AMBUJA CEMENT and
ULTRATECH CEMENT.
It can be seen that in automobile sector BAJAJ AUTO have better returns than market
and ASHOK LEYLAND, MARUTISUZUKI and TATA MOTORS have lesser returns
then the market.
It can be seen that in the banking sector BANK OF BARODA, BANK OF INDIA and
CANARA BANK have better returns in the market.
It can be seen that in the infrastructure sectors Reliance infrastructure have highest
standard deviation (13.69) and L&T have lowest standard deviation (10.59).
It can be seen that in the infrastructure sectors JK LAXMI CEMENT have highest
standard deviation (11.64) and ACC CEMENT have lowest standard deviation (6.70).
It can be seen that in the automobile sectors TATA MOTORS have highest standard
deviation (20.19) and MARUTI SUZUKI have lowest standard deviation (9.95.
It can be seen that in the Banking sectors SYNDICATE BANK have highest standard
deviation (12.32) and BANK OF BARODA have lowest standard deviation (9.23).
It can be seen that JP ASSOCIATED has the highest Beta value and L&T has the lowest
Beta value.
It can be seen that JK LAXMI has the highest Beta value and ULTRATECH has the
lowest Beta value.
It can be seen that TATA MOTORS has the highest Beta value and BAJAJ AUTO has
the lowest Beta value.
It can be seen that SYNDICATE BANK has the highest Beta value and BANK OF
INDIA has the lowest Beta value.
It can be observed that according to Sharpes index in the infrastructure sectors .Jai
Prakash associated has the highest value and the Sharpes of L&T has the lowest value.
It can be observed that according to Sharpes index in the cement industry sectors .J.K
SUPER cement has the highest value and the Sharpes of ACC has the lowest value.
It can be observed that according to Sharpes index in the Automobile sectors .TATA
MOTORS has the highest value and the Sharpes of MARUTI SUZUKI has the lowest
value.
It can be observed that according to Sharpes index in the Banking sectors .CANARA
BANK has the highest value and the Sharpes of BANK OF BARODA has the lowest
value.

RNS INSTITUTE OF TECHNOLOGY

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CONCLUSION

RNS INSTITUTE OF TECHNOLOGY

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Conclusions
Kotak securities helped me in gaining practical knowledge in the area of stock market
Like:

It helped me in gaining theoretical concepts in practical way.


Knowledge about Different sectors.
Knowledge about various Stocks.
The study helped in learning actively about equity trading in BSE and NSE.
The study helped in understanding how financial sector works with its component like
Demat, Derivatives.

However by the above data analysis and interpretation we can conclude that:

Investor should carefully examine the stock market before investment because
investments are subject to market risks.
Investments can be made by the opinion of the experts.
Before investing shareholders should study the variables like FUNDAMENTAL
ANALYSIS:
Economic Analysis, Industry Analysis, Company Analysis, Technical Analysis.
Volume of Trading, Bar &Line Charts, Moving Averages etc.

AS PER THIS CALCULATION IT IS ADVICE TO THE INVESTORS:

In Infrastructure sectors no one have the better return compare to market return.
In cement industry sectors JK SUPER CEMENT has the highest return compare to others
and risk is also high.
In automobile sector BAJAJ AUTO has the highest return compare to others and risk is
also high.
In banking sector BANK OF BARODA has the highest returns compare to others and
risk is also less so that investors should have to invest in BANK OF BARODA compare
to other banks in the banking sectors.

RNS INSTITUTE OF TECHNOLOGY

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RNS INSTITUTE OF TECHNOLOGY

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