A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO KOTAK

SECURITIES LTD, PERAMBALUR

Project report submitted in partial fulfillment of the requirement of Anna University of Technology, Coimbatore for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted by

PARIMALA NATHAN.P Register No: 098001602029

Under the guidance Mrs. R.SERNMADEVI, M.B.A, M.Com. M.C.A., M.Phil, (Ph.D) Senior Lecturer

DEPARTMENT OF MANAGEMENT STUDIES CMS COLLEGE OF ENGINEERING NAMAKKAL - 637003 MAY 2011

ACKNOWLEDGEMENT With great pleasure, I am presenting this project entitled A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO KOTAK SECURITIES LTD, PERAMBALURA project of this dimension would not have been possible without the sincere help and earnest support provided to me from all sources that was approached. I feel great pleasure to thank our beloved Mr.C.MUTHUSAMY, Founder and Chairman of CMS College of Engineering, Namakkal, for the encouragement he rendered me in doing the project well. Words are insufficient when we endeavor to express our heartfelt thankfulness to Dr. NELSON KENNDY BABU, Principal, CMS College of Engineering , and Namakkal who provides us all facilities during the course of study. I express a deep sense of gratitude and hearty thanks to Head of the Department Mr.K.G.SENTHILKUMAR, M.B.A., M.Phil, (Ph.D).CMS College of Engineering , Namakkal for making all necessary arrangements for the successful completion of this project. The project has been made possible by the greatest efforts and dedicated support extended to me by my guide to Lecturer Mrs. R.SERANMADEVI, M.B.A, M.Com., M.C.A., M.Phil., (Ph.D)., and Senior Lecturer of CMS College of Engineering, Namakkal, I extend my sincere thanks to Mr. A.VARATHARAJ, General Manager, Id needs, for providing the opportunity to do this project. I also thank to Mr. B.SELVAKUMAR, Assistant manager for his guidance in the company to collect the information needed for the work. Above all, I thank, God Almighty for his entire blessing P.PARIMALANATHAN

BONAFIED CERTIFICATE
This is to certify that the main project entitled A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO KOTAK SECURITIES LTD, PERAMBALUR is a record of the work done by PARIMALA NATHAN.P, (Register No.098001602029) Submitted in partial fulfillment of the requirement for the award of degree of Master of Business Administration of Anna University of Technology during the academic year 2011.

Project Guide

Head of the Department

Submitted for the Project Viva-Voce examination held on

Internal Examiner

External Examiner

DECLARATION
I affirm that the project work title A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO KOTAK SECURITIES LTD, PERAMBALUR being submitted in partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

Place: Date:

Signature of the student (PARIMALANATHAN.P)

CONTENTS S .NO Bonafied certificate Declaration Acknowledgement Contents List of Tables List of Charts Abstract 1. INTRODUCTION 1.1 Introduction to the study 1.2 About the Industry 1.3 About the company 1.4 statement of the problem 1.5 Objectives of the study 1.6 Need For The Study 1.7 Limitations of the study 1.8 Research Methodology 1.9 Analytical tools used REVIEW OF LITERATURE ANALYSIS & INTERPRETATION FINDINGS & SUGGESTIONS 4.1 Findings 4.2 Suggestions CONCLUSION BIBLIOGRAPHY Description Page No.

1 5 8 10 10 10 11 11 12 17 21

2. 3. 4.

74 80 81

5.

LIST OF TABLES TABLE NO 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9 3.2.10 3.2.11 3.2.12 3.2.13 3.2.14 3.2.15 3.2.16 3.2.17 3.2.18 3.2.19 3.2.20 3.3.1 3.4.1.1 3.4.1.2 3.4.1.3 3.4.1.4 3.4.1.5 3.4.2.1 3.4.2.2 PAGE NO 21 23 25 27 29 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 53 54 55 56 57 58 58

LIST OF TABLE Table showing November Month Moving Average Analysis Table Showing December Month Moving Average Analysis Table showing January Month Moving Average Analysis Table showing February Month Moving Average Analysis Table showing March Month Moving Average Analysis Table Showing Price Volume Analysis for Axis Bank Table Showing Price Volume Analysis for HDFC Bank Table Showing Price Volume Analysis for IOB Bank Table Showing Price Volume Analysis for SBI Bank Table Showing Price Volume Analysis for HCL Table Showing Price Volume Analysis for Insys Technologies Table Showing Price Volume Analysis for Satyam Computer Services Table Showing Price Volume Analysis for TCS Ltd Table Showing Price Volume Analysis for Ashok Leyland Table Showing Price Volume Analysis for Bajaj Auto Table Showing Price Volume Analysis for Hero Honda Motors Table Showing Price Volume Analysis for Tata Motors Table Showing Price Volume Analysis for ACC Cement Table Showing Price Volume Analysis for Ambuja Cement Table Showing Price Volume Analysis for Birla Ltd Table Showing Price Volume Analysis for Ultratech Cement Table Showing Price Volume Analysis for Bharat Petroleum Corporation Ltd Table Showing Price Volume Analysis for Hindustan Petroleum Corporation Ltd Table Showing Price Volume Analysis for Indian Oil Corporation Table Showing Price Volume Analysis for Oil India Table Showing for Market Capitalization Rates Internal Analysis of Growth Rate Of the Axis Bank, Hdfc Bank, Iob Bank And The Sbi Bank Growth Rate of the Hcl, Insys Technologies, Satyam Computers, And The Tcs Ltd Growth Rate of the Ashok Leyland, Bajaj Auto, Hero Honda Motors And The Tata Motors Growth Rate of the Acc Cement, Ambuja Cement, Birla Ltd And The Ultratech Cement Growth Rate of the Bpcl, Hpcl, IOB, And The Oil India Sector Analysis Growth Rate Of the Bse Bankex and The Bse IT Growth Rate of The BSE BANKEX And The BSE AUTO

3.4.2.3 3.4.2.4 3.4.2.5 3.4.2.6 3.5.1 3.6.1 3.6.2 3.6.3 3.6.4 3.6.5 3.6.6 3.7.1 3.8.1 3.9.1

Growth Rate of The BSE BANKEX And The BSE CEMENT Growth Rate of The BSE BANKEX And The BSE OIL Growth Rate of the BSE IT and the BSE AUTO Growth Rate of the BSE CEMENT and the BSE OIL Table Showing Standard Deviation Table Showing Beta Analysis Of Bse Banker & Bse It Table Showing Beta Analysis Of Bse Banker & Bse Auto Table Showing Beta Analysis Of Bse Banker & Bse Cement Table Showing Beta Analysis Of Bse Banker & Bse Oil Table Showing Beta Analysis Of Bse It & Bse Auto Table Showing Beta Analysis Of Bse Cement & Bse Oil Performance Analysis Sensex And Nse Index Movement Form Nov 2010 to Mar. 2011 Table Showing Sharp Measures Table Showing Trey nor Measures

59 60 60 61 62 63 64 65 66 67 68 69 72 73

LIST OF CHARTS CHART NO 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart PAGE NO 22 24 26 28 30 31 32 33 34 35 36 37

LIST OF CHARTS showing November Month Moving Average Analysis showing December Month Moving Average Analysis showing January Month Moving Average Analysis showing February Month Moving Average Analysis showing March Month Moving Average Analysis showing Price Volume Analysis for Axis Bank showing Price Volume Analysis for HDFC Bank showing Price Volume Analysis for IOB Bank showing Price Volume Analysis for SBI Bank showing Price Volume Analysis for HCL showing Price Volume Analysis for Insys Technologies showing Price Volume Analysis for Satyam Computer Services

3.2.8 3.2.9 3.2.10 3.2.11 3.2.12 3.2.13 3.2.14 3.2.15 3.2.16 3.2.17 3.2.18 3.2.19 3.2.20 3.3.1 3.7.1 3.8.1 3.9.1

Chart showing Price Volume Analysis for TCS Ltd Chart showing Price Volume Analysis for Ashok Leyland Chart showing Price Volume Analysis for Bajaj Auto Chart showing Price Volume Analysis for Hero Honda Motors Chart showing Price Volume Analysis for Tata Motors Chart showing Price Volume Analysis for ACC Cement Chart showing Price Volume Analysis for Ambuja Cement Chart showing Price Volume Analysis for Birla Ltd Chart showing Price Volume Analysis for Ultratech Cement Chart showing Price Volume Analysis for Bharat Petroleum Corporation Ltd Chart showing Price Volume Analysis for Hindustan Petroleum Corporation Ltd Chart showing Price Volume Analysis for Indian Oil Corporation Chart showing Price Volume Analysis for Oil India Chart showing for Market Capitalization Rates Performance Analysis Sensex And Nse Index Movement Form Nov 2010 to Mar 2011 Chart showing Sharp Measures Chart showing Trey nor Measures

38 39 40 41 42 43 44 45 46 47 48 49 50 52 70 72 73

ABSTRACT This study entitled A STUDY ON THE EQUITY SCRIPS PRICE CHANGES OF BANK, IT, CEMENT, AUTOMOBILE, OIL SECTORS WITH REFERENCE TO KOTAK SECURITIES LTD, PERAMBALUR . Kotak securities ltd is one of the number one stock broking firms located in Perambalur. Its complete financial solutions as its key focus area the bank will offer wide range of financial product and advisory services that enhances consumer wealth. A project aimed at studying the perception of the investor in equity shares. The entire study has been divided into five chapters. The first chapter deals with introduction to the study, which deals with who exactly investors are and what kind of perception they have in relation to the equity shares.

The research design for this study analytical in nature. In this study secondary data is being employed for analysis. The data was collected using Nse & Bse standardized dates.

CHAPTER 1 1. INTRODUCTION 1.1 INTRODUCTION TO THE STUDY

After liberalization our country has vast development in all the sectors like infrastructure, human resources, real estate, telecommunication etc., now a days more MNC companies providing good employment with high paid salaries for the people so the people want to save their money by investing in stock market though they have interest in stock market most of the people do not know about the procedures and rules about the stock market. More over the investor do not have idea about the scrip which are better performing in stock market because in stock there are different divisions like Bank sectors, IT sectors, Cement

sectors, Automobile sectors, Oil sectors. etc, so to avoid the confusions for the investors and to help the investors we undertake the study for analyzing Five sectors BANK SECTORS, IT SECTORS, CEMENT SECTORS, AUTOMOBILE SECTORS, OIL SECTORS with the help of necessary technical tools. The reason for selecting the five sectors from the stock exchange because they are the most active trading sectors in the stock exchange. Any positive and negative changes it will affect the stock exchange greatly. So the study will be useful for all the investors as they can see the performance of all the five sectors according to that they can take decisions for investing in the stock market. INTRODUCTION TO FINANCIAL MARKETS GLOBAL SCENARIO: Globalization for the financial services industry implies both harmonization of rules and regulation of barriers that will allow for the free flow of capital and permit all firms compete in all markets. Technologies advances in the area of information processing and telecommunication have driven the globalization of capital markets. The liberalization of restriction on the cross border flow of capital, the deregulation of domestic capital markets, the development of unregulated offshore markets, the explosive growth of derivative products that allow fluid movements between currencies and even greater competition among these markets for a share of the worlds transaction business. As financial globalization progresses, financial services will become more integrated, more competitive and more concentrated. Also, firms that survive will become more efficient and consumers of financial services will benefit considerably. INDIAN SCENARIO: Indian scenario is no different from the global environment. Financial markets world over are rapidly changing and with the technological revolution all are getting interlinked and changing into one giant global market where anyone can operate from anywhere. Into this wider horizon and newer vistas the Indian markets have started entering. Indian markets are fast changing gearing itself with the global markets.

TYPES OF FINANCIAL MARKETS: Financial markets are of various types, they are:

Cash markets

Stock markets

Commodities markets

Currency markets

Bond markets

Derivative instrument markets

Gilt markets Futures markets PURPOSE OF FINANCIAL MARKETS The very purpose of any market is to facilitate trade. It is nothing different with the financial markets. Markets now-a-days are becoming more and more competitive, complex and interlinked. Repercussion in one market is felt in the other markets. Clear example for this is recent Asian economic crisis which went into recession. Another example for this is recent boom in the American markets. Their implications are clearly felt in recent surge in Indian stock markets, which made BSE index cross 22000 marks NATURE OF FINANCIAL MARKETS: Markets all over have similar nature. All markets are dependent on people and they help in bringing people together. Today if world is said to be a global village, it is because of development of huge markets. Markets reflect the psychology of people. They are fast changing Option markets

and reflect the society. It is same with the financial markets. It is said that stock markets indicate the future position of the economy. Therefore it is very important for everyone to study and understand the markets thoroughly before entering into the market. It is true for any market and it is all the more important in the financial markets especially stock markets. This is due to the uncertainty associated with the stock market. It is this uncertainty that makes stock market more thrilling and awesome. All are inherently risky and intriguing. PLAYERS IN THE FINANCIAL MARKETS There are many players in the stock market obviously they are different types of people with different motives. However most of the players will be playing with an objective to make money. They can be broadly categorized as follows

Institution

Individual

Why do people invest:Fundamentally the first question that needs to be asked is why do people invest? Primarily to make money. There are people who buy and sell stocks for the thrill of it, but most people invest with the idea that they will be able to make profit. This holds true for individual investors as well as institutional investors, pension fund managers and so forth. What methods do they use:What methods do people use to make money i.e., what are their investment strategies? Some people are highly risk averse. These people may buy government bonds and hold them to

maturity thus avoiding any price risk. They are content to make the stated coupon rate on the bonds. Others may have a slight greater appetite for risk and may choose to put their money in blue chip stocks that have a long history of regular dividend and any increase in wealth due to appreciation of the stock price is considered as gravy. Many people also purchase stocks that have a fair dividend return with some potential for price appreciation. These investors are trading some risk for the added benefit of potential price increases. This is large middle ground investors that use mutual funds for their investments. They dont feel that they either have the time or the expertise to pick stocks. So they are content to buy into a fund and make the average rate of return. Even with in the universe of mutual funds there are income funds, growth funds, bond funds and so forth. At the other end of the spectrum, there are people who are extreme risk takers. These traders may not position longer than several hours and may scalp the difference in the small price changes as profit. There are institutional money managers who spend several hours each day doing research on stocks in an attempt to find attractive buys. Some of these buys may be quite risky, but the managers have done their homework and feel confident about prospects for success.

1.2 ABOUT THE INDUSTRY

Evolution of Indian stock market Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830s business on corporate stocks and shares in bank and cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into 60. In 1860-61 the American Civil War broke out and cotton

supply from United States of Europe was stopped; thus, the Share Mania in India begun. The no of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump begun (for example, Bank of Bombay Share which had touched Rs.2850 could only be sold at Rs.87). At the end of the American Civil War, the brokers who thrived out of civil war in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the Native Share and Stock Brokers Association (which is alternatively known as The Stock Exchange). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the stock exchange at Bombay was consolidated. Trading Pattern of the Indian Stock Trading in Indian stock exchanges are limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non-specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a market capitalization of atleast Rs.100 million and having more than 20,000 shareholders are normally, put in the specified group and the balance in non-specified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract (b) forward transactions delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract. The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (can tango or backwardation) which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchanges can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London stock exchanges, where a member can act as a jobber or a broker only.

However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times. BSE (BOMBAY STOCK EXCHANGE) The BSE (Corporatization and Demutualization) Scheme, 2005 Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th

August, 2005. The 'Due Date' for taking over the business and operations of the BSE, by the Exchange was fixed for 19th August, 2005, under the Scheme. The Exchange has succeeded the business and operations of BSE ongoing concern basis and its recognition as an Exchange has been continued by SEBI. With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries.

In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director & CEO and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On-Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

1.3 ABOUT THE COMPANY

Kotak securities Ltd is listed on both the leading stock exchanges in India, viz. Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The Kotak securities Ltd, comprising the holding company, Kotak securities Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Currency Derivatives trading, Futures trading, Options trading, Capital trading, Commodity trading, Gold bonds and other small savings instruments in Kotak securities Ltd. Kotak Securities Ltd, a strategic joint venture between a Kotak bank and Goldman Sachs (holding 25% - one of

the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 4- 6%. Kotak Securities Ltd servicing around 50 Clients, through our own offices and a small franchisee network. Its has an Online presence through Kotak securities.com where we offer Internet Broking services. Kotak securities Ltd Trading Preference Listed on NSE & BSE Products and services Equities Derivatives Market Commodity market Futures trading Options trading

PRODUCT & SERVICES PROFILE: KOTAK SECURITIES LTD:

Kotak securities Ltd is a 100% subsidiary of Kotak securities Ltd, which is engaged
in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the

National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI authorized Portfolio Manager, it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. KOTAK SECURITIES COMMODITIES LTD:

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

which is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as offline trading facilities. KOTAK SECURITIES INVESTMENT SERVICES LTD: Kotak Securities Investment Services Ltd is also a 100% subsidiary of India Kotak securities Lid. It has an NBFC license from the Reserve Bank of India (RBI) and offers marginfunding facility to the broking customers.

1.4 STATEMENT OF PROBLEM

The main problem of the study in that investors do not know when to invest and when to sell the shares and also do not know about which shares is better performing. So to help them investors we undertake the study with the help of technical tools to find which sector is best performing in stock exchange.

1.5 OBJECTIVE OF THE STUDY

1. To study in depth about the equity scrips price changes of five sectors. 2. To find out the impact of different moving average on each sector scrip. 3. To help an investor in deciding his/her entry and exit point. 4. To find out the equity performance of all BSE BANKEX, BSE IT, BSE CEMENT, BSE AUTOMOBILE, BSE OIL. 5. To find out the overall performance of BSE and NSE. 1.6 NEED FOR THE STUDY The risk taking mentality among investors in stock market has grown in the last one and half decades. Investors have to analyze the market price fluctuations before investing in the market. By this analysis only he can have a clear picture of the market and its fluctuations. Then only he can decide his entry or exit timings and also the decisions regarding holding of a particular security. The risk that people are bearing is not a blind one but well calculated and forecasted. By analyzing the price movements one can easily understand the trend but how long the particular trend will continue remains a question. With the help of moving averages, this study aims at enabling an investor who analyze the market to decide the short/medium term investments and the timings also.

1.7 LIMITATIONS OF THE STUDY This study is meant for investors who are investing for short term only. The technical and fundamental analysis tools were used for the study. The study is limited only to five sectors. The constraint of time was always a major limitation that was accurately felt.

1.8 RESEARCH METHODOLOGY RESEARCH DESIGN The researcher has used an analytical & Descriptive research design in this study. Descriptive research includes surveys and fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. If your study aims to actually pre-planned hypotheses based on existing knowledge (or) findings is called analytical research design. In this study the researcher has getting the data such as scrip price movements like closing price, days high & days low prices, with the help of the above data we can able to calculate moving average, performance measures, price volume analysis etc. METHOD OF DATA COLLECTION: In case of data collection, secondary data have been used. These data which someone else has already collected and which have already been passed through the statistical process. The secondary data, which is obtained from the Kotak securities Ltd

1.9 ANALYTICAL TOOLS USED: Moving Average Price volume analysis Market capitalization rates Growth Analysis standard deviation Beta analysis Performance analysis

 Sharp measures Trey nor measures

1.9.1 MOVING AVERAGE: The market indices do not rise or fall in straight line. The upward and downward movements are interrupted by counter moves. The underlying trend can be studied by smoothening of the data. The word moving average means ahead to include the recent observation. If it is five month moving average on the sixth month the body of data moves to include the sixth day observation eliminating the first day observation. Closing price of the stock is used for calculating the moving average. Formula: Price1+ p2+p3+ pns Moving avg = ------------------------------------------No. of days The moving averages are used to study the movement of the market as well as the individual scrip price. The moving average indicates the underlying trend in the scrip. The period of average determines the period of the trend that is being identified. For identifying short-term trend 10 day to 30 day moving averages are used. In the case of medium term trend 50 day to 125 day are adopted. 200 day are adopted. 1.9.2 PRICE VOLUME ANALYSIS Traders often rely on volume to confirm stock trading patterns before they commit to a trade. Unless volume confirm a pattern or a breakout, it may be a false breakout that loss in traders who have not done sufficient homework. However, since short term volume can be erratic, trend lines should can be drawn on volume charts to indicate the trend of volume for conformations of trends and patterns.

A sustained uptrend should have volume rising as the price is rising. If the volume is decreasing as the price is rising, it indicates a weakening of the trend that could lead to a reversal of trend. When a stock breaks through a resistance level, it should breakout with volume well above normal volume to confirm a breakout. When a stock breaks down below a support level, it should break with volume well above normal volume to confirm a breakout. Formula: Range = highest price lowest price Percentage = range/lowest price * 100 1.9.3 MARKET CAPITALIZATION: The market capitalization of the stock indicates the true value of the stock as the outstanding number of shares is multiplied by the price. Price indicates the demand and growth potential of the stock. The outstanding shares depend on the equity base. The scrip should be among the top 100 companies listed by full market capitalization. The weight of each sensex scrip based on free float should be at least 0.5% of the index. Market capitalization would be averaged for last six months. Formula: Market capitalization = No of shares * prices of shares. 1.9.4. GROWTH ANALYSIS Geometric Mean

Geometric mean is defined as the Nth root of the product of N items or values. if there are two items, we take square root; if there are three items, the cube root; and so on Symbolically.

G.M =

Where X1, X2, X3, etc. Refer to the various items of the series. Thus the geometric mean of 3 values 2, 3, 4, would be:

G.M =

2.885

When the number of items is three or more the task of multiplying the numbers and of extracting the root becomes excessively difficult. To simplify calculations logarithms are used. Geometric mean then is calculated as follows: Formula:

log G.M =

(or)

G.M = Antilog

1.9.5 Standard Deviation

The most commonly used measure of risk in finance is variance or its square root the Standard Deviation. The variance and the standard deviation of a historical return series are defined as follows: Standard deviation ( 2) = [ (R-)2/n-1] Where 2 R n = = = = = Variance of returns Standard Deviation of return Returns from the stock in period Arithmetic return Number of periods

Since variance is expressed as squared returns, it is somewhat difficult to grasp. So its square root, the Standard Deviation, is employed as an equivalent measure. = ( 2) where = Standard Deviation 1.9.6 Beta A measure of an investment's volatility relative to a chosen benchmark. For stocks or stock funds, the benchmark is usually the S & P 500. For bonds or bond funds, it is Treasury bills. The beta of the benchmark is always 1.00. So a stock fund with a beta of 1.00 has experienced up and down movements of roughly the same magnitude as the S & P 500. Meanwhile, a fund with a beta of 1.25 is expected to do 25% better than the S & P in an up market and 25% worse in a down market. Generally speaking, the higher the beta, the more risky the investment. But without a high R-squared, a beta statistic can be meaningless. R-squared determines how much an investment's return is correlated to its benchmark. = n xy- ( x) ( y)/n x2-( x) 2

1.9.7. PERFORMANCE MEASURES: 1. The Sharpe Measure William Sharp developed this model. The model is named after his name, Sharp Ratio. It is a ratio of returns generated by the funds over the above risk free rate of return and the total risk associated with it. According to Sharpe, it is the total risk of the fund that the investors are concerned about. So, the model evaluates funds on the basis of reward per unit to total risk. Sharp Measures = Rp - Rf / p Where p is standard deviation of the fund While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a low and negative Sharpe Ratio is an indication of unfavorable performance. 2. The Trey nor Measure Jack Trey nor developed this mode. The model evaluates funds based on Treynor's Index. This index is a ratio of return generated by the fund over and above risk free rate of return (generally taken to be the return on securities backed by the government, as there is no credit risk associated), during a given period and systematic risk association with it (beta). Trey nor Measures = Rp - Rf / When Rp represents return on fund, Rf is risk free rate of return and is beta of the fund, All risk-averse investors would like to maximize this value, while a high and positive Treynor's Index shows a superior risk adjusted performance of a fund, a low and negative Treynor's Index is an indication of unfavorable performance.

CHAPTER 2 2.1 REVIEW OF LITERATURE:

Review of literature helps the investigator to clarify the problems that he has undertaken. It helps in finding out the means through which the researcher can carry out the research. For this purpose, the abstracting and indexing journals, published or unpublished data, academic journals, reports etc. must be tapped depending on the nature of the problems. 1). A number of studies have been carried out regarding the effect of introduction of Derivatives on the spot market volatility across the country. One school of thought argues that Future market increases the spot market volatility and destabilizes the market. Another school Of thought future trading reduces the spot market volatility and stabilizes the spot market. Pratap Chandra Pati and K. Kiran Kumar, Maturity and Volume effect on Volatility, ICFAI Journal, OCT.2007. 2). The emergence of market for derivative products, most notably forward, futures and options, can be traced back to the willingness of risk adverse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risk by locking in asset prices. As instruments of risk management, these dont influence the fluctuations in the underlying asset prices. However, by locking in asset prices on the profitability and cash flow situation of risk averse investors.Effect of Derivative Market in Stock Trading, Peter Markus, ICFAI Journal, June 2009. 3). Volatility is fundamental, in the context of financial markets, to the paradigm of the tradeoff between risk and expected return. This paradigm is the foundation upon which a lot of modern finance theories, such as portfolio theory, derivative asset pricing, capital structure theory and valuation theory as based. The study of the behavior of the volatility of futures contracts prices near the maturity dates is very crucial because it has important implication for participant involved in the future market. Understanding volatility is central to derivative pricing and to risk management. Volatility is also fundamental to the pricing of equities and derivative equities Such as future and option. As the price of the underlying asset change future price also Change.

4). According to Jing Liu, Vice President, Credit Risk Management, Citiba Using daily data from May 2000 to January 2004, this study examines the risk, return, security selection and market timing performance of China. Security investment funds (SIFs), in comparison with the performance of SIFs in the U.S. Our results indicate that China investment funds show superior marketing timing performance while U.S. fund managers display stronger security selection ability. These results imply that the potential synergy for Sino-U.S. joint venture investment funds could be tremendous. Additional analysis of the trading volume of closed-end funds in China illustrates that investors. Interests in SIFs are strongly and positively related to fund performance. Results also indicate that Chinese investors favor professionally managed funds more than direct investment in stocks during negative market conditions. 5). According to Market Timing in Regressions and Reality Kenneth L. Fisher, Fisher Investments, Inc., Meir Stat man, Santa Clara University We compare price-to-earnings ratios and dividend yields, which are indirect measures of sentiment, with the bullish sentiment index, which is a direct measure. We find that the sentiment index does better as a market timing tool than P/E ratios and dividend yields, but none are very reliable. We do not argue that market timing is impossible. Rather, we observe that stock prices reflect both sentiment and value, both of which are difficult to measure and neither of which is perfectly known in foresight. Successful market timing requires insights into future sentiment and value, insights beyond these that are reflected in widely available measures. 6). According to the Comparative Simulation Study of Fund Performance Measures GAO Zhangpeng and Shahidur RAHMAN This study critically reviews current fund performance measures. The performance measure derived from the return-based style analysis by Sharpe (1992) is introduced and compared with other regression-based measures. A comparative simulation is set up to test the robustness, accuracy, and efficiency of the measures. The evidence shows that the RBSA measure is superior to other measures. The performance of the simple Jensen measures is sensitive to fund types. More complicated measures, like market-timing measures and multifactor measures show spurious market timing and wrong fund type information.

7). According to the Comparative Simulation Study of Fund Performance Measures GAO Zhangpeng and Shahidur RAHMAN This study critically reviews current fund performance measures. The performance measure derived from the return-based style analysis by Sharpe (1992) is introduced and compared with other regression-based measures. A comparative simulation is set up to test the robustness, accuracy, and efficiency of the measures. The evidence shows that the RBSA measure is superior to other measures. The performance of the simple Jensen measures is sensitive to fund types. More complicated measures, like market-timing measures and multifactor measures show spurious market timing and wrong fund type information. 8). According to Mr.Hemant Rustagi, CEO, Wise invest Advisors Pvt Ltd , with equity Markets displaying significant volatility in recent days, a natural outcome was for debt funds to come back into focus. The main reason behind this phenomenon was that the comfort that investors had with investing in equity, even for short periods of time, started wearing out due to emerging volatility characteristics. On the other hand, interest rates and yields have been rising for a while now. Increasingly, risk adjusted returns from fixed income products were getting Attractive. 9). According to Mr.Sanjay Matai, an investment advisor and promoter of Wealtharchitects.in, investing in the new fund offers of close-ended equity funds does not make a very prudent investment decision. This is so because of: Market valuations are not cheap and hence one can expect high volatility, even though the long term Indian growth story may still be attractive. In close-ended funds it is not possible to do SIP, which is a very important investment strategy today to reduce the Volatility risk. If need be, you cannot easily exit. Either such close-ended funds trade at a discount if Listed on the stock exchange. Or if AMCs offer exit through repurchase, it is available Only on few select days in a year and at a high exit load. In NFOs one ends up paying a Higher cost vis-vis investing in a 3-5 year old similar fund. Further in NFOs, one doesnt have the benefit of assessing the past track record. While, This is no guarantee of future performance; it has generally been observed that poor performing Funds usually turn out poor performance in future too. So at least one knows which funds are not worth investing.

 Fund managers have done a great job of managing open-ended funds, despite the Uncertainty of inflows and outflows. So the logic that a fund manager gets a chance to Take a long-term view and give better performance may not always be true. 10). According to Mr.Amar Pandit, a practicing certified Financial Planner, mutual Fund houses through agents, distributors, advisors and advertisements in personal finance magazines, billboards and television tend to do a rock show of their past performance. Its sad to know that the core focus of mutual fund advertising is past performance and yet its the only thing that these funds cannot sell and investors cannot buy. Can the fund sell you answer is NO. So what does a fund mean when it suggests a 40% return p.a of the last 5 years for the next 5 years. Does it mean that the next 5 years are going to be similar or even closer to this? Though we all know the answer to this, somewhere these past figures influence our decision and help us focus only on the returns part of the equation. Now ask the same person about his risk tolerance or specifically How much short term loss you can tolerate to achieve your objectives and the answer can be from 0% to 10% depending on whom you are talking to People cannot digest the fact that there can be short term loss when investing in equity but in reality it can be as high as 35%-38% as we have all witnessed in May 2006 more as amply demonstrated in 2000 technology meltdown. You will have read it several times that time in the market is more important than timing the market. In short run, equities can go up and down but in the long run and in an era of growth and opportunity, equity will go northwards. Therefore it is very important to take stock of your investment time horizon. It is one of the most important variables that will help determine how much money you should allocate to equity.

CHAPTER 3

3. ANALYSIS AND INTERPRETATION TABLE 3.1.1

NOVEMBER MONTH MOVING AVERAGE ANALYSIS S.No 1. 2. 3. 4. Name Of The Company Open AXIS BANK HDCF BANK IOB BANK SBI BANK 5. ASHOK LEYLAND 6. BAJAJ AUTO 7. HERO HONDA MOTORS 8. TATA MOTORS 9. ACC CEMENT 10. AMBUJA CEMENT 11. BIRLA LTD 12. ULTRATECH CEMENT 13 HCL 14. INSYS TECHNOLOGIES 15. SATYAM COMPUTER SERVICES 16. TCS LTD 17. BPCL 18. HPCL 19 IOC 20. OIL INDIA Source: Secondary Data INTERPRETATION: From the above table inferred that the SBI bank has (3169.20) high scrip price than AXIS Bank, compare to HDFC bank & IOB bank. INSYS TECHNOLOGIES has (3063.45) high scrip price than TCS Ltd compare to HCL & SATYAM COMPUTER SERVICES. And HERO HONDA MOTORS has high (1907.10) scrip price than BAJAJ AUTO compare to TATA MOTORS & ASHOK LEYLAND. OIL INDIA has (1439.00) high scrip price than BPCL compare to IOC & HPCL. ULTRATECH CEMENT has high (1135.41) scrip price than ACC CEMENT compare to BIRLA LTD & AMBUJA CEMENT
1477.09 2245.05 163.01 3126.74 76.35 1588.68 1879.35 1229.15 1051.35 149.62 401.57 1119.45 399.13 3030.21 76.96 1055.83 733.08 463.38 396.54 1419.32

November High Low

1492.28 2382.00 165.58 3169.20 77.43 1610.90 1907.10 1248.38 1066.10 152.63 411.15 1135.41 405.33 3063.45 78.36 1069.86 740.78 467.43 400.09 1439.00 1442.75 2317.95 156.36 3061.17 73.44 1564.79 1856.72 1199.20 1033.01 146.32 389.20 1102.97 392.56 3000.59 74.79 1042.89 715.09 448.56 386.21 1398.21

Close
1464.52 2348.19 160.35 3114.87 75.86 1588.54 1882.19 1223.04 1049.82 149.52 399.52 1118.67 399.30 3031.64 76.10 1054.19 727.02 456.08 391.19 1416.06

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

the time to sell their scrip for earning good profit

FIGURE: 3.1.1

TABLE NO: 3.1.2

DECEMBER MONTH MOVING AVERAGE ANALYSIS S.No 1. 2. 3. 4. Name Of The Company Open AXIS BANK HDCF BANK IOB BANK SBI BANK 5. ASHOK LEYLAND 6. BAJAJ AUTO 7. HERO HONDA MOTORS 8. TATA MOTORS 9. ACC CEMENT 10. AMBUJA CEMENT 11. BIRLA LTD 12. ULTRATECH CEMENT 13 HCL 14. INSYS TECHNOLOGIES 15. SATYAM COMPUTER SERVICES 16. TCS LTD 17. BPCL 18. HPCL 19 IOC 20. OIL INDIA Source: Secondary Data INTERPRETATION: From the above table inferred that out of four IT sectors the INSYS TECHNOLOGIES has high scrip price (3272.33).In the bank sectors the SBI bank has (2852.86) high scrip price for month of December. And HERO HONDA MOTORS has high scrip price (1889.03). OIL INDIA has (1420.28) high scrip price than BPCL compare to HPCL & IOC. ULTRATECH Cement has high (1098.00) scrip price than ACC Cement compare to BIRLA LTD & AMBUJA Cement . We can understand that the moving average for SBI is sloping down fastly the month of December compare to November month. So it is time to purchase the shares instead of selling TABLE NO: 3.1.2
1333.14 2266.93 144.71 2820.98 67.84 1511.00 1850.1 1310.10 1044.1 139.55 353.59 1079.04 438.94 3235.77 65.01 1115.59 680.97 409.45 367.45 1401.41

December High Low

1350.37 2293.12 147.17 2852.86 68.65 1523.78 1889.03 1333.23 1064.2 142.44 360.57 1098.00 445.59 3272.33 66.36 1130.27 690.79 414.80 374.40 1420.28 1305.22 2233.87 141.21 2776.50 66.03 1486.17 1810.55 1288.52 1033.1 137.15 344.79 1062.86 434.57 3218.84 63.80 1104.82 669.52 400.34 359.93 1384.25

Close
1326.52 2267.69 144.09 2808.95 67.19 1504.97 1852.75 1313.76 1049.20 139.72 351.94 1080.52 442.55 3255.87 64.82 1119.59 678.40 406.45 365.67 1398.29

TABLE NO: 3.1.3

JANUARY MONTH MOVING AVERAGE ANALYSIS S.No 1. 2. 3. 4. Name Of The Company Open AXIS BANK HDCF BANK IOB BANK SBI BANK 5. ASHOK LEYLAND 6. BAJAJ AUTO 7. HERO HONDA MOTORS 8. TATA MOTORS 9. ACC CEMENT 10. AMBUJA CEMENT 11. BIRLA LTD 12. ULTRATECH CEMENT 13 HCL 14. INSYS TECHNOLOGIES 15. SATYAM COMPUTER SERVICES 16. TCS LTD 17. BPCL 18. HPCL 19 IOC 20. OIL INDIA Source: Secondary Data INTERPRETATION: From the above table inferred that the INSYS TECHNOLOGIES has (3352.74) highest price in the month of January. The bank sector has highest price SBI is more than other four bank industries. And HERO HONDA MOTORS has high (1846.47) scrip price than Bajaj Auto compare to Tata Motors & Ashok Leyland. OIL INDIA has (1355.62) high scrip price more than other four oil sectors. UltraTech Cement has high scrip price than ACC Cement compare to Birla Ltd & Ambuja Cement A whole INSYS TECHNOLOGIES has the highest scrip price compared to all five sectors. So it is the time to sell their scrip for earning good profit
1293.45 2178.90 132.51 2631.11 61.17 1329.82 1825.89 1215.9 1027.7 131.66 339.38 1029.61 482.29 3311.59 67.71 1165.72 615.97 374.9 328.31 1307.72

January High Low

1316.2 2204.90 135.48 2665.18 62.64 1345.12 1846.47 1229.30 1040.14 133.81 347.21 1052.13 492.17 3352.74 68.74 1182.25 624.48 381.39 336.15 1355.62 1268.31 2129.07 129.2 2584.09 59.19 1290.85 1785.54 1186.19 1009.3 128.78 331.60 1008.50 475.66 3273.52 66.16 1149.28 602.71 367.18 323.13 1291.92

Close
1286.26 2159.40 131.97 2617.94 60.87 1310.29 1809.73 1205.67 1023.1 130.75 338.72 1023.69 483.63 3308.23 67.06 1164.03 612.37 372.63 329.48 1316.58

TABLE NO: 3.1.3

TABLE NO: 3.1.4

FEBRUARY MONTH MOVING AVERAGE ANALYSIS

S.No

Name Of The Company Open

February High
1268.79 2111.88 131.61 2695.24 53.29 1305.76 1539.80 1175.14 1002.4 124.23 322.13 976.36 478.25 3124.87 62.71 1142.73 599.58 345.51 323.67 1295.29

Low
1220.9 2047.28 125.12 2615.11 50.47 1254.21 1468.16 1120.29 970.46 119.23 307.80 942.32 460 3052.92 59.71 1103.13 572.57 332.60 312.01 1257.92

Close
1241.88 2077.70 127.66 2652.04 49.27 1273.06 1497.28 1144.89 986.17 121.49 313.20 956.73 468.86 3083.9 60.93 1122.02 583.94 338.05 316.65 1275.69

Axis Bank HDCF BANK IOB BANK SBI BANK 5. ASHOK LEYLAND 6. BAJAJ AUTO 7. HERO HONDA MOTORS 8. TATA MOTORS 9. ACC CEMENT 10. AMBUJA CEMENT 11. BIRLA LTD 12. ULTRATECH CEMENT 13 HCL 14. INSYS TECHNOLOGIES 15. SATYAM COMPUTER SERVICES 16. TCS LTD 17. BPCL 18. HPCL 19 IOC 20. OIL INDIA Source: Secondary Data INTERPRETATION:

1. 2. 3. 4.

1243.26 2079.48 128.44 2656.5 52.21 1274.81 1507.73 1150.63 985.94 122.19 314.85 960.17 470.75 3087.32 61.22 1125.21 586.23 340.22 318.48 1279.65

From the above table inferred that the SBI Bank has highest price in the month of February. The Automobile sector has highest price HERO HONDA MOTORS is more than other three Automobile industries. A Cement sector has highest price the ACC cement compared to other three sectors, OIL India highest price compared to other three oil sectors. And IT sector has fluctuating trend. On the whole the INFOSYS is highest price. So it is better the selling of INFOSYS scrip price. TABLE NO: 3.1.4

TABLE NO: 3.1.5

MARCH MONTH MOVING AVERAGE ANALYSIS

S.No 1. 2. 3. 4.

Name Of The Company Open High

1335.37 2234.65 145.27 2687.97 54.60 1393.61 1532.16 1180.32 1026.7 132.95 320..08 1043.21 467.67 3087.38 67.00 1123.75 582.75 338.02 313.51 1287.53 1311.88 2198.14 142.71 2656.09 53.19 1374.32 1506.30 1162.76 1113.4 129.63 311.38 1019.02 459.49 3047.44 65.88 1107.98 571.26 332.03 308.32 1383.5

March Low
1297.2 2182.13 140.95 2629.0 54.60 1360.83 1488.56 1148.44 1006.16 128.26 305.34 1011.26 454.5 3026,13 64.76 1094.86 563.92 327.32 305.24 1248.60

Close
1319.88 2211.91 143.22 2659.24 53.68 1379.85 1510.33 1168.77 1018.22 131.28 313.35 1032.86 462.58 3063.66 65.89 1111.07 574.66 333.83 310.69 1269.87

Axis Bank HDCF BANK IOB BANK SBI BANK 5. ASHOK LEYLAND 6. BAJAJ AUTO 7. HERO HONDA MOTORS 8. TATA MOTORS 9. ACC CEMENT 10. AMBUJA CEMENT 11. BIRLA LTD 12. ULTRATECH CEMENT 13 HCL 14. INSYS TECHNOLOGIES 15. SATYAM COMPUTER SERVICES 16. TCS LTD 17. BPCL 18. HPCL 19 IOC 20. OIL INDIA Source: Secondary Data INTERPRETATION:

From the above table shows that SBI bank has been highest price (2687.97) and HDFC bank also increased in the month of March. And the INFOSYS tech has more fluctuation in the moving average. So both buying and selling of shares is good for investors. Automobile sector has normal price but the HERO HONDA MOTORS has highest price to more than other four Automobile industries. OIL INDIA the oil sector has highest price of BPCL compare to other HPCL & IOC. SBI has highest price of the other four industries. TABLE NO: 3.1.5

3.2. PRICE VOLUME ANALYSIS

TABLE NO: 3.2.1. AXIS BANK

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1584 1461 1376.6 1348.85 1443.55

Price of Lowest value 1297 1229.7 1195 1150 1233.45

Range 287 231.3 181.6 198.85 210.1

% of the price 22.12 18.80 15.19 17.29 17.03

TABLE NO: 3.2.1

INTERPRETATION: From the above table it is inferred that bank has result in the maximum percentage of 22.12% in the month of November, and the minimum percentage of 15.19% in the month of January.

HDFC BANK
TABLE NO: 3.2.2

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 2419.8 2425 2399.65 2243.1 2395.9

Price of Lowest value 2258.5 2150 1996.2 1981.4 2059

Range 161.3 275 403.45 261.7 336.9

% of the price 7.14 1.27 20.21 13.20 16.36

TABLE NO: 3.2.2

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 20.21% in the month of January, and the minimum percentage of 1.27% in the month of December.

IOB BANK
TABLE NO: 3.2.3

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 180 159.85 150.2 154.2 152.05

Price of Lowest value 131.2 126.65 121 116.4 134

Range 48.8 33.2 29.2 37.8 18.05

% of the price 37.19 26.21 24.13 32.47 13.47

TABLE NO: 3.2.3

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 37.19% in the month of November, and the minimum percentage of 13.47% in the month of March.

SBI BANK
TABLE NO: 3.2.4

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 3515 3173.6 2852 2814.75 2888.5

Price of Lowest value 2775 2655.5 2463.1 2476.3 2520.45

Range 740 518.1 388.9 388.45 368.05

% of the price 26.66 19.51 15.58 15.68 14.60

TABLE NO: 3.2.4

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 26.66% in the month of November, and the minimum percentage of 14.60% in the month of March.

HCL
TABLE NO: 3.2.5

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 416.95 460.75 517.15 503.45 485.6

Price of Lowest value 367.7 406.75 451.25 425.5 436.7

Range 49.25 54 65.9 77.95 48.9

% of the price 13.39 13.27 14.60 18.31 11.19

TABLE NO: 3.2.5

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 18.31% in the month of February, and the minimum percentage of 11.19% in the month of March.

INSYS TECHNOLOGIES
TABLE NO: 3.2.6

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 3111 3454 3499 3177.8 3265

Price of Lowest value 2940.25 3032 3086.2 2966 2904.35

Range 170.75 422 412.8 211.8 360.65

% of the price 5.80 13.91 13.37 7.14 12.41

TABLE NO: 3.2.6

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 13.91% in the month of December, and the minimum percentage of 5.80% in the month of November.

SATYAM COMPUTER SERVICES

TABLE NO: 3.2.7

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 90.7 70.8 73.9 66.85 70.5

Price of Lowest value 59.55 59 59.9 54.2 61.6

Range 31.15 11.8 14 12.65 8.9

% of the price 52.30 20 13.37 23.33 14.44

TABLE NO: 3.2.7

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 52.30% in the month of November, and the minimum percentage of 13.37 % in the month of January.

TCS Ltd
TABLE NO: 3.2.8

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1108 1180 1220 1198.9 1198

Price of Lowest value 998.95 1048.4 1087.8 1055.9 1057.25

Range 109.05 131.6 132.2 143 140.75

% of the price 10.91 12.55 12.15 13.54 13.31

TABLE NO: 3.2.8

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 13.54% in the month of February, and the minimum percentage of 10.91% in the month of November.

ASHOK LEYLAND
TABLE NO: 3.2.9

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 81.9 75.25 68.75 59.9 57.9

Price of Lowest value 64.75 61.1 52.3 45.05 46.5

Range 17.75 14.15 16.45 14.85 11.4

% of the price 26.48 23.15 31.45 32.96 24.51

TABLE NO: 3.2.9

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 32.96% in the month of February, and the minimum percentage of 23.15% in the month of December

BAJAJ AUTO
TABLE NO: 3.2.10

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1665 1623.9 1564.65 1558.15 1474

Price of Lowest value 1513.35 1430 1165.65 1190 1276.7

Range 151.65 193.9 399 368.15 197.3

% of the price 10.02 13.55 34.22 30.93 15.45

TABLE NO: 3.2.10

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 34.22% in the month of January, and the minimum percentage of 10.02% in the month of November.

HERO HONDA MOTORS

TABLE NO: 3.2.11

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 2061.9 2019 2020 1668 1619

Price of Lowest value 1795 1559 1650 1375.75 1413.8

Range 266.9 460 370 292.25 205.2

% of the price 14.86 29.50 22.42 21.24 14.51

TABLE NO: 3.2.11

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 29.50% in the month of December, and the minimum percentage of 14.51% in the month of Masrch.

TATA MOTORS
TABLE NO: 3.2.12

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1348 1382 1335 1257.9 1260.9

Price of Lowest value 1138 1212 1112.1 1038.65 1097.15

Range 210 170 222.9 219.25 163.75

% of the price 18.45 14.02 20.04 21.10 14.92

TABLE NO: 3.2.12

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

ACC CEMENT
TABLE NO: 3.2.13

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1134.4 1098.85 1088 1028 1099

Price of Lowest value 968.05 970.35 965.7 922.2 974.2

Range 166.35 128.5 122.3 105.8 124.8

% of the price 17.18 13.24 12.66 11.47 12.81

TABLE NO: 3.2.13

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 17.18% in the month of November, and the minimum percentage of 11.47% in the month of February.

AMBUJA CEMENT
TABLE NO: 3.2.14

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 166.8 152.6 146.9 129.95 151.9

Price of Lowest value 133.05 130.85 123.5 111.6 118.05

Range 33.75 21.75 23.4 18.35 33.85

% of the price 25.36 16.62 18.94 16.44 28.67

TABLE NO: 3.2.14

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 28.67% in the month of March, and the minimum percentage of 16.44% in the month of February.

BIRLA LTD
TABLE NO: 3.2.15

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 434.8 383.75 370 347 346

Price of Lowest value 360.5 300.05 302 293.15 281.85

Range 74.3 83.7 68 53.85 64.15

% of the price 20.61 27.89 22.51 18.36 22.76

TABLE NO: 3.2.15

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 27.89% in the month of December, and the minimum percentage of 18.36% in the month of February.

ULTRATECH CEMENT
TABLE NO: 3.2.16

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1175 1189 1197.45 1033.65 1147.5

Price of Lowest value 1070 1036 968.1 883.4 920.3

Range 105 153 229.35 150.25 227.2

% of the price 9.81 14.76 23.69 17.00 24.68

TABLE NO: 3.2.16

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 24.68% in the month of March, and the minimum percentage of 9.81% in the month of November.

Bharat Petroleum Corporation Ltd (BPCL)

TABLE NO: 3.2.17

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 785 721.9 669.9 644.4 623.7

Price of Lowest value 149.15 650.65 565.15 529.35 538.1

Range 635.85 71.25 104.75 115.05 85.6

% of the price 426.31 10.95 18.53 21.73 15.90

TABLE NO: 3.2.17

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 426.31% in the month of November, and the minimum percentage of 10.95% in the month of December

Hindustan Petroleum Corporation Ltd (HPCL)

TABLE NO: 3.2.18

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 504.8 437.15 403 363.8 365

Price of Lowest value 390.1 375.6 347.8 303.85 308.25

Range 114.7 61.55 55.2 59.95 56.75

% of the price 29.40 16.38 15.87 19.73 18.41

TABLE NO: 3.2.18

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 29.40% in the month of November, and the minimum percentage of 15.87% in the month of January.

Indian Oil Corporation (IOC)

TABLE NO: 3.2.19

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 427.9 407.2 355.45 337.5 342

Price of Lowest value 326.5 335.15 301.25 290.1 295

Range 101.4 72.05 63.35 47.4 47

% of the price 31.05 20.28 21.69 16.33 15.93

TABLE NO: 3.2.19

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

Oil India
TABLE NO: 3.2.20

Month November 2010 December 2010 January 2011 February 2011 March 2011 Source: Secondary Data

Price of Highest value 1477 1474 1519.95 1345 1340

Price of Lowest value 1335 1335 1050 1205 1176.6

Range 142 139 469.95 140 163.4

% of the price 10.63 10.41 44.75 11.61 13.88

TABLE NO: 3.2.20

INTERPRETATION: From the above table decides that bank has resulted in the maximum percentage of 44.75% in the month of January, and the minimum percentage of 10.41% in the month of December.

3.3 MARKET CAPITALIZATION RATES TABLE NO: 3.3.1

S.no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. 16. 17. 18. 19 20.

Company name Axis Bank HDCF BANK IOB BANK SBI BANK ASHOK LEYLAND BAJAJ AUTO HERO HONDA MOTORS TATA MOTORS ACC CEMENT AMBUJA CEMENT BIRLA LTD ULTRATECH CEMENT HCL INSYS TECHNOLOGIES SATYAM COMPUTER SERVICES TCS LTD BPCL HPCL IOC OIL INDIA

Market capitalization rates

51154.13 104724.63 9581.33 168252.51 6585.17 38695.60 35853.89 76663.29 18740.44 20802.77 2810.7 28681.2 34666.96 165358.52 2291.72 220715.81 23831.05 13025.30 83436.59 33186.30

Source: Secondary Data

INTERPRETATION: From the above table shows that the market capitalization rates of IT sector has the highest rate of (220715.81) TCS Ltd. And market capitalization of Bank sector has been SBI Bank rates (168252.51) are higher than other four companies. IOC rate of Rs. 83436.59 has been highest rates of market capitalization. The market capitalization rates of Automobile sector has the highest rate of (76663.29) Tata Motors. And highest market capitalization of cement sector rate of (28681.2) Ultratech

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

FIGURE: 3.3.1

3.4. GROWTH ANALYSIS 3.4.1. INTERNAL ANALYSIS 3.4.1.1. Growth Rate of the AXIS BANK, HDFC BANK, IOB BANK and the SBI BANK TABLE NO: 3.4.1.1 AXIS BANK 1.06 Log X1 0.025 HDFC BANK 0.88 Log X2 -0.055 IOB BANK 2.18 Log X3 0.338 SBI BANK 3.71 Log X4 0.569

1.05 1.08 1.16 1.13

0.021 0.033 0.064 0.053 0.196

0.89 0.92 0.98 0.96

-0.050 -0.036 -8.773 -0.017 -8.931

2.20 .2.08 2.11 2.15

0.342 0.318 0.324 0.332 1.654

3.73 3.62 3.4 3.46

0.571 0.558 0.531 0.539 2.768

Source: Secondary Data Geometric Mean = Antilog (log x / n) AXIS BANK = HDFC BANK = IOB BANK SBI BANK = = Antilog (0.196/5) Antilog (-8.931/5) Antilog (1.654/5) Antilog (2.768/5) = 0.0392 = -1.7862 =0.3308 =0.5536

INTERPRETATION: The above table shows that the growth of SBI bank is (0.5536) against the growth of IOB bank is (0.3308).and AXIS bank also increase the growth value is(0.0392).HDFC bank was decrease the growth. There is a phenomenal growth in SBI bank.

TABLE NO: 3.4.1.2 3.4.1.2 Growth Rate of the HCL, INSYS TECHNOLOGIES, SATYAM COMPUTERS, and the TCS LTD HCL 2.13 Log X1 4.536 INSYS

Technologies
3.82

Log X2 14.592

SATYAM Log X3 Computers 1.28 1.638

TCS Ltd

Log X4

1.35

1.822

2.27 2.50 2.55 2.61

5.152 6.25 6.502 6.812 29.252

3.75 3.63 3.38 3.45

14.062 13.176 11.424 11.902 65.156

1.20 1.09 1.16 1.13

1.44 1.188 1.345 1.276 6.887

1.25 1.22 1.24 1.27

1.562 1.488 1.537 1.612 8.021

Source: Secondary Data Geometric Mean = Antilog (log x / n) HCL = Antilog (29.252/5) Antilog (65.156/5) Antilog (6.887/5) Antilog (8.021/5) = 5.8504 = 13.0312 =1.3774 =1.6042

INSYS Technologies = SATYAM Computers = TCS Ltd =

INTERPRETATION: The above table inferred that the growth of INSYS Technologies is 13.0312 against the growth of HCL of 5.8504.And and TCS Ltd also increase the growth value is 1.6042. Against the growth of SATYAM Computers There is a phenomenal growth in INSYS Technologies.

TABLE NO: 3.4.1.3 3.4.1.3. Growth Rate of the ASHOK LEYLAND, BAJAI AUTO, HERO HONDA MOTORS and the TATA MOTORS ASHOK LEYLAND BAJAJ AUTO HERO HONDA MOTORS Log X3 TATA MOTORS Log X4

Log X1

Log X2

1.08 1.17 1.23 1.25 1.30

1.166 1.368 1.512 1.562 1.69 7.298

4.20 4.53 3.71 3.86 3.55

17.64 20.520 13.764 14.899 12.602 79.425

5.87 4.42 4.71 5.01 4.72

34.456 19.536 22.184 25.100 22.278 123.554

0.46 0.53 0.42 0.44 0.45

0.211 0.280 0.176 0.193 0.202 1.062

Source: Secondary Data Geometric Mean = Antilog (log x / n) Ashok Leyland BAJAJ Auto = Antilog (7.298/5) = Antilog (79.425/5) = 1.4596 = 15.885

HERO HONDA Motors = Antilog (123.554/5) = 24.710 TATA Motors = Antilog (1.062/5) = 0.2124

INTERPRETATION: The above table shows that the growth of Hero Honda motors is (24.710) against the growth of BAJAI Auto is (15.885).and Ashok Leyland also increase the growth value is (1.4596).TATA Motors the growth (0.2124). There is a phenomenal growth in HERO HONDA motors.

TABLE NO: 3.4.1.4 3.4.1.4 Growth Rate of the ACC Cement, AMBUJA Cement, BIRLA Ltd and the UltraTech Cement ACC Cement Log X1 AMBUJA Cement Log X2 BIRLA Ltd Log X3 UltraTech Cement Log X4

0.27 0.12 0.18 0.25 0.30

0.072 0.014 0.032 0.062 0.09 0.27

0.43 0.36 0.17 1.17 1.25

0.184 0.129 0.028 1.368 1.562 3.271

2.12 2.16 2.20 2.23 2.25

4.494 4.665 4.84 4.972 5.062 24.033

2.11 2.13 2.15 2.20 2.23

4.452 4.536 4.622 4.84 4.972 23.422

Source: Secondary Data Geometric Mean = Antilog (log x / n) ACC Cement = Antilog (0.27/5) = 0.054 = 0.6542 = 4.8066 = 4.6844

AMBUJA Cement = Antilog (3.271/5) BIRLA Ltd = Antilog (24.033/5)

UltraTech Cement = Antilog (23.422/5) INTERPRETATION:

The above table inferred that the growth of BIRLA Ltd is (4.8066) against the growth of UltraTech Cement of (4.6844).And and AMBUJA Cement also increase the growth value is (0.6542). Against the growth of ACC Cement There is a phenomenal growth in BIRLA Ltd.

TABLE NO: 3.4.1.5 3.4.1.5.Growth Rate of the BPCL, HPCL, IOC, and the OIL INDIA BPCL Log X1 HPCL Log X2 Log X3 OIL INDIA Log X4

IOC

1.97 1.98 2.03 2.15 2.23

3.880 3.920 4.120 4.622 4.972 21.514

3.21 3.25 3.17 3.19 3.20

10.304 10.562 10.048 10.176 10.24 51.33

0.44 0.45 0.50 0.56 0.59

0.193 0.202 0.25 0.313 0.348 1.306

1.97 1.98 2.01 2.07 2.10

3.880 3.920 4.040 4.284 4.41 20.534

Source: Secondary Data Geometric Mean = Antilog (log x / n) BPCL HPCL IOC OIL INDIA = Antilog (21.514/5) = Antilog (51.33/5) = Antilog (1.306/5) = Antilog (20.534/5) = 4.3028 = 10.266 = 0.2612 = 4.1068

INTERPRETATION: The above table shows that the growth of HPCL is (10.266) against the growth of BPCL is (4.3028).and OIL INDIA also increase the growth value is (4.1068). IOC the growth (0.2612). There is a phenomenal growth in HPCL.

3.4.2. SECTOR ANALYSIS TABLE NO: 3.4.2.1 3.4.2.1. Growth Rate of the BSE BANKEX and the BSE IT BSE BANKEX 21.97 Log X1 1.341 BSE IT 23.03 Log X2 1.362

20.89 20.09 18.11 18.38 Source: Secondary Data

1.319 1.302 1.257 1.264 6.483

22.93 22 19.67 20.04

1.360 1.342 1.293 1.301 6.658

Geometric Mean = Antilog (log x / n) BSE BANKEX BSE IT INTERPRETATION: The above table inferred that the growth of BSE IT is 1.331 against the growth of BSE BANKEX of 1.296 there is a phenomenal growth in BSE IT sector. TABLE NO: 3.4.2.2 3.4.2.2. Growth Rate of the BSE BANKEX and the BSE AUTO BSE BANKEX 21.97 20.89 20.09 18.11 18.38 Source: Secondary Data Geometric Mean = Antilog (log x / n) BSE BANKEX BSE AUTO INTERPRETATION: = = Antilog (6.483/5) = 1.296 Antilog (6.084/5) = 1.216 Log X1 1.341 1.319 1.302 1.257 1.264 6.483 BSE AUTO 18.76 17.3 16.09 14.97 15.58 Log X2 1.273 1.238 1.206 1.175 1.192 6.084 = = Antilog (6.483/5) = 1.296 Antilog (6.658/5) = 1.331

The above table shows that the growth of BSE BANKER is 1.296 against the growth of BSE AUTO of 1.216. There is a phenomenal growth in BSE BANKER.

TABLE NO: 3.4.2.3 3.4.2.3. Growth Rate of the BSE BANKEX and the BSE CEMENT BSE BANKEX 21.97 20.89 20.09 18.11 18.38 Source: Secondary Data Geometric Mean = Antilog (log x / n) BSE BANKEX BSE CEMENT INTERPRETATION: The above table shows that the growth of BSE BANKEX is 1.296 against the growth of BSE CEMENT of 0.039. There is a phenomenal growth in BSE BANKEX. = Antilog (6.483/5) = 1.296 = Antilog (0.196/5) =0.039 Log X1 1.341 1.319 1.302 1.257 1.264 6.483 BSE CEMENT 1.06 1.05 1.08 1.16 1.13 Log X2 0.025 0.021 0.033 0.064 0.053 0.196

TABLE NO: 3.4.2.4 3.4.2.4. Growth Rate of the BSE BANKEX and the BSE OIL BSE BANKEX 21.97 Log X1 1.341 BSE OIL 3.71 Log X2 0.569

20.89 20.09 18.11 18.38 Source: Secondary Data

1.319 1.302 1.257 1.264 6.483

3.73 3.62 3.4 3.46

0.571 0.558 0.531 0.539 2.768

Geometric Mean = Antilog (log x / n) BSE BANKEX BSE OIL INTERPRETATION: The above table shows that the growth of BSE BANKER is 1.296 against the growth of BSE OIL of 0.553. There is a phenomenal growth in BSE OIL. = = Antilog (6.483/5) = 1.296 Antilog (2.768/5) = 0.553

TABLE NO: 3.4.2.5 3.4.2.5. Growth Rate of the BSE IT and the BSE AUTO BSE IT 23.03 22.93 22 19.67 20.04 Source: Secondary Data Geometric Mean = Antilog (log x / n) BSE IT BSE AUTO = Antilog (6.658/5) = 1.331 = Antilog (6.084/5) =1.216 Log X1 1.362 1.360 1.342 1.293 1.301 6.658 BSE AUTO 18.76 17.3 16.09 14.97 15.58 Log X2 1.273 1.238 1.206 1.175 1.192 6.084

INTERPRETATION: The above table shows that the growth of BSE IT is 1.331 against the growth of BSE AUTO of 1.216. There is a phenomenal growth in BSE IT.

TABLE NO: 3.4.2.6 3.4.2.6 .Growth Rate of the BSE CEMENT and the BSE OIL BSE CEMENT 1.06 1.05 1.08 1.16 1.13 Source: Secondary Data Geometric Mean = Antilog (log x / n) BSE CEMENT BSE OIL INTERPRETATION: The above table shows that the growth of BSE CEMENT is 0.039 against the growth of BSE OIL of 0.553. There is a phenomenal growth in BSE OIL. 3.5. RETURN ANALYSIS 3.5.1. STANDARD DEVIATION = = Antilog (0.196/5) = 0.039 Antilog (2.768/5) = 0.553 Log X1 0.025 0.021 0.033 0.064 0.053 0.196 BSE OIL 3.71 3.73 3.62 3.4 3.46 Log X2 0.569 0.571 0.558 0.531 0.539 2.768

2 = [ (R-)2 / n 1]
Where 2 R n = = = = = Variance of return Standard Deviation of return Return from the stock in period Arithmetic return Number of periods TABLE NO: 3.5.1

S. No 1. 2. 3. 4. 5.

EQUITY SCRIPS BSE BANKEX BSE IT BSE AUTO BSE CEMENT BSE OIL

2 99.44/4 107.67/4 82.7/4 5.48/4 17.92/4

= 2 4.985 5.188 4.546 1.170 2.116

Source: Secondary Data INTERPRETATION: The above table inferred that the return of BSE IT is 5.188.BSE BANKER return is 4.985 and BSE AUTO is 4.546.and BSE OIL return is 2.116,return on BSE Cement Compare to five sectors BSE IT face high risk and return is more than other sectors. 3.6. BETA ANALYSIS 3.6.1. BETA ANALYSIS OF BSE BANKEX & BSE IT TABLE NO: 3.6.1.

BSE BANKEX & BSE IT BANKEX(X) 21.97 20.89 20.09 18.11 18.38 99.44 Source: Secondary Data x = 99.44 x2 = 1988.46 y =107.67 y2 = 2328.66 xy =1821.58 IT(Y) 23.03 22.93 22 19.67 20.04 107.67 XY 505.96 479.00 441.98 356.22 38.42 1821.58 X2 482.68 436.39 403.60 327.97 337.82 1988.46 Y2 530.38 525.78 484 386.90 401.60 2328.66

= n xy (x) (y) / nx2 (x)2 = 5 (1821.58) (99.44) (107.67) / 5 (1988.46) (2328.66)2 = -1598.80 / -5412715.096 = 2.95 INTERPRETATION: The Beta analysis reveals the risk factor of the sectors. From the above table, it is inferred that Bank sector has the negative result, Viz the IT sector has the negative result. When preferring the investment avenue on the basis of risk, Both Bank and IT sector is not preferable.

TABLE NO: 3.6.2. 3.6.2. BETA ANALYSIS OF BSE BANKEX & BSE AUTO

BSE BANKEX & BSE AUTO BANKEX(X) 21.97 20.89 20.09 18.11 18.38 99.44 Source: Secondary Data x = 99.44 x2 = 1988.46 y = 82.7 y2 = 1376.93 xy = 1654.24 AUTO(Y) 18.76 17.3 16.09 14.97 15.58 82.7 XY 412.15 361.39 323.24 271.10 286.36 1654.24 X2 482.68 436.39 403.60 327.97 337.82 1988.46 Y2 351.93 299.29 258.88 224.10 242.73 1376.93

= n xy (x) (y) / nx2 (x)2 = 5 (1654.24) (99.44) (82.7) / 5 (1988.46) (99.44)2 = 47.51 / 53.98 = 0.8801 INTERPRETATION: The above table inferred that the Bank sector has the positive result, Viz the Auto sector also positive result. When proffering the investment avenue on the Auto is high risk and return has high. TABLE NO: 3.6.3. 3.6.3. BETA ANALYSIS OF BSE BANKER & BSE CEMENT

BSE BANKER & BSE CEMENT BANKER(X) 21.97 20.89 20.09 18.11 18.38 99.44 Source: Secondary Data x =99.44 x2 = 1988.46 y = 5.48 y2 = 5.99 xy = 108.66 CEMENT(Y) 1.06 1.05 1.08 1.16 1.13 5.48 XY 23.28 21.93 21.69 21.00 20.76 108.66 X2 482.68 436.39 403.60 327.97 337.82 1988.46 Y2 1.12 1.10 1.16 1.34 1.27 5.99

= n xy (x) (y) / nx2 (x)2 = 5 (108.66) (99.44) (5.48) / 5 (1988.46) (99.44)2 = -1.63/53.98 = -0.030 INTERPRETATION: The above table shows that the risk of Cement is more than other sectors. The Bank has negative result. So compare to Bank sector, Cement sector is more return. So investor preferring the Cement sector has high return.

TABLE NO: 3.6.4 3.6.4 BETA ANALYSIS OF BSE BANKEX & BSE OIL BSE BANKEX & BSE OIL BANKEX(X) 21.97 20.89 20.09 18.11 18.38 99.44 Source: Secondary Data x = 99.44 x2 = 1988.46 y = 17.92 y2 = 64.3 xy = 357.29 OIL(Y) 3.71 3.73 3.62 3.4 3.46 17.92 XY 81.50 77.91 72.72 61.57 63.59 357.29 X2 482.68 436.39 403.60 327.97 337.82 1988.46 Y2 13.76 13.91 13.10 11.56 11.97 64.3

= n xy (x) (y) / nx2 (x)2 = 5 (357.29) (99.44) (17.92) / 5 (1988.46) (99.44)2 = 4.485 /53.98 = 0.083 INTERPRETATION: The above table inferred that the Bank sector has the positive result, Viz the Oil sector also positive result. When preferring the investment avenue on the Oil is high risk and return has high.

TABLE NO: 3.6.5

3.6.5 BETA ANALYSIS OF BSE IT & BSE AUTO BSE IT & BSE AUTO IT(X) 23.03 22.93 22 19.67 20.04 107.67 Source: Secondary Data x =107.67 x2 = 2328.66 y = 82.7 y2 = 1376.93 xy = 1789.37 AUTO(Y) 18.76 17.3 16.09 14.97 15.58 82.7 XY 432.04 396.68 353.98 294.45 312.22 1789.37 X2 530.38 525.78 484 386.90 401.60 2328.66 Y2 351.93 299.29 258.88 224.10 242.73 1376.93

= n xy (x) (y) / nx2 (x)2 = 5 (1789.37) (107.67) (82.7) / 5 (2328.66) (107.67)2 = 42.54/50.47 =0.84 INTERPRETATION: The above table shows that the risk of BSE Auto is more than other sectors. The BSE IT has positive result. So compare to IT sector, Auto sector is more return. So investor preferring the Auto sector has high return.

TABLE NO: 3.6.6

3.6.6 BETA ANALYSIS OF BSE CEMENT & BSE OIL BSE CEMENT & BSE OIL CEMENT(X) 1.06 1.05 1.08 1.16 1.13 5.48 OIL(Y) 3.71 3.73 3.62 3.4 3.46 17.92 XY 3.93 3.91 3.90 3.94 3.90 19.58 X2 1.12 1.10 1.16 1.34 1.27 5.99 Y2 13.76 13.91 13.10 11.56 11.97 64.3

Source: Secondary Data x = 5.48 x2 = 5.99 y = 17.92 y2 = 64.3 xy = 19.58

= n xy (x) (y) / nx2 (x)2 = 5 (19.58) (5.48) (17.92) / 5 (5.99) (5.48)2 = -0.30 / 24.47 = -0.0122 INTERPRETATION: The above table inferred that the Oil sector has the positive result, Viz the Cement sector has the negative result. When preferring the investment avenue on the Oil is high risk and return has high.

3.7. PERFORMANCE ANALYSIS

SENSEX AND NSE INDEX MOVEMENT FORM NOV 2010 TO MAR. 2011 TABLE NO: 3.7.1 BSE INDICES Date Range Nov-10 Dec -10 Jan -11 Feb -11 Mar -11 Sensex Points 20355 19850 20509 18022 18446 NSE index points 6071 5862 6134 5417 5333

Source: Secondary data INTERPRETATION: The above table shows that SENSEX point decreases during November & December. It is increases during the month of December & January. After February it is found that it states fluctuating trend. In the NSE points there is an decrease during November & December. Over all it is inferred that there is an decrease in SENSEX point than NSE point during November & December.

FIGURE NO: 3.7.1

FIGURE NO: 3.7.1

FIGURE NO: 3.7.1

The chart it is understand that the movement BSE SENSEK and NSE NIFTY is slowing down. This due to the effect of global market and mainly because of US market as well as the pre and post announcement of budget in the month of March 2011.

3.8. SHARP MEASURES

Sharp Measures = Rp Rf / P TABLE NO: 3.8.1 INDICIES BSE BANKEX BSE IT BSE AUTO BSE CEMENT BSE OIL Source:secondary data FIGURE 3.8 RP 19.88 21.53 16.54 1.09 3.58 Rf 6 6 6 6 6 P 1.53 1.97 1.51 1.71 2.14 RP Rf / P 9.07 7.88 6.98 -2.87 -1.13

INTERPRETATION: From the above table it can be inferred that the highest measure attributed to BSE BANK (9.07), and the lowest measures is for BSE CEMENT (-2.87). It indicates the excess returned earned on the portfolio per unit of total risk.

3.9. TREYNOR MEASURES Treynor Measures = RP Rf / TABLE NO:3.9.1 INDICIES BSE BANKEX BSE IT BSE AUTO BSE CEMENT BSE OIL Source: Secondary Data FIGURE: 3.9 RP 19.88 21.53 16.54 1.09 3.58 Rf 6 6 6 6 6 -3.15 -5.43 -3.22 -0.81 -1.68 RP Rf / -7.34 -4.65 -1.20 6.06 1.44

INTERPRETATION: This indicates the excess return earned per unit of funds risk. From the above table it is further classification that BSE CEMENT (6.06) and BSE OIL (1.44) also has performed well.

CHAPTER -4 FINDINGS & SUGGESTIONS 4.1. FINDINGS: MOVING AVERAGE On the whole SBI bank has the highest scrip price compared to all five sectors. So it is the time to sell their scrip for earning good profit The moving average for SBI is sloping down fatly the month of December compare to November month. So it is time to purchase the shares instead of selling The moving average INSYS TECHNOLOGIES has the highest scrip price compared to all five sectors. So it is the time to sell their scrip for earning good profit A Cement sector has highest price the ACC cement compared to other three sectors, OIL India highest price compared to other three oil sectors. And IT sector has fluctuating trend. On the whole the INFOSYS is highest price. So it is better the selling of INFOSYS scrip price. OIL INDIA the oil sector has highest price of BPCL compare to other HPCL & IOC. SBI has highest price of the other four industries.

PRICE VOLUME ANALYSIS From the above table it is inferred that bank has result in the maximum percentage of 22.12% in the month of November, and the minimum percentage of 15.19% in the month of January. From the above table decides that bank has resulted in the maximum percentage of 20.21% in the month of January, and the minimum percentage of 1.27% in the month of December.

 From the above table decides that bank has resulted in the maximum percentage of 37.19% in the month of November, and the minimum percentage of 13.47% in the month of March. From the above table decides that bank has resulted in the maximum percentage of 26.66% in the month of November, and the minimum percentage of 14.60% in the month of March From the above table decides that bank has resulted in the maximum percentage of 18.31% in the month of February, and the minimum percentage of 11.19% in the month of March From the above table decides that bank has resulted in the maximum percentage of 13.91% in the month of December, and the minimum percentage of 5.80% in the month of November From the above table decides that bank has resulted in the maximum percentage of 52.30% in the month of November, and the minimum percentage of 13.37 % in the month of January. From the above table decides that bank has resulted in the maximum percentage of 13.54% in the month of February, and the minimum percentage of 10.91% in the month of November. From the above table decides that bank has resulted in the maximum percentage of 32.96% in the month of February, and the minimum percentage of 23.15% in the month of December From the above table decides that bank has resulted in the maximum percentage of 34.22% in the month of January, and the minimum percentage of 10.02% in the month of November.

 From the above table decides that bank has resulted in the maximum percentage of 29.50% in the month of December, and the minimum percentage of 14.51% in the month of March From the above table decides that bank has resulted in the maximum percentage of 21.10% in the month of February, and the minimum percentage of 14.02% in the month of December. From the above table decides that bank has resulted in the maximum percentage of 17.18% in the month of November, and the minimum percentage of 11.47% in the month of February. From the above table decides that bank has resulted in the maximum percentage of 28.67% in the month of March, and the minimum percentage of 16.44% in the month of February. From the above table decides that bank has resulted in the maximum percentage of 27.89% in the month of December, and the minimum percentage of 18.36% in the month of February. From the above table decides that bank has resulted in the maximum percentage of 24.68% in the month of March, and the minimum percentage of 9.81% in the month of November. From the above table decides that bank has resulted in the maximum percentage of 426.31% in the month of November, and the minimum percentage of 10.95% in the month of December From the above table decides that bank has resulted in the maximum percentage of 29.40% in the month of November, and the minimum percentage of 15.87% in the month of January. From the above table decides that bank has resulted in the maximum percentage of 31.05% in the month of November, and the minimum percentage of 15.93% in the month of March.

 From the above table decides that bank has resulted in the maximum percentage of 44.75% in the month of January, and the minimum percentage of 10.41% in the month of December. MARKET CAPITALIZATION RATES From the above table shows that the market capitalization rates of IT sector has the highest rate of (220715.81) TCS Ltd. And market capitalization of Bank sector has been SBI Bank rates (168252.51) are higher than other four companies. IOC rate of Rs. 83436.59 has been highest rates of market capitalization. The market capitalization rates of Automobile sector has the highest rate of (76663.29) Tata Motors. And highest market capitalization of cement sector rate of (28681.2) Ultratech Cement. On the whole highest market capitalization rates are TCS Ltd. Compare to five sectors the IT SECTOR has highest market capitalization rates. GROWTH ANALYSIS 1.INTERNAL ANALYSIS The above table shows that the growth of SBI bank is (0.5536) against the growth of IOB bank is (0.3308).and AXIS bank also increase the growth value is(0.0392).HDFC bank was decrease the growth. There is a phenomenal growth in SBI bank The above table inferred that the growth of INSYS Technologies is 13.0312 against the growth of HCL of 5.8504.And and TCS Ltd also increase the growth value is 1.6042. Against the growth of Satyam Computers There is a phenomenal growth in INSYS Technologies The above table shows that the growth of Hero Honda motors is (24.710) against the growth of Bajaj Auto is (15.885).and Ashok Leyland also increase the growth value is (1.4596).Tata Motors the growth (0.2124).There is a phenomenal growth in Hero Honda Motors. The above table inferred that the growth of BIRLA Ltd is (4.8066) against the growth of UltraTech Cement of (4.6844).And and Ambuja Cement also increase the growth value is (0.6542). Against the growth of ACC Cement There is a phenomenal growth in Birla Ltd.

 The above table shows that the growth of HPCL is (10.266) against the growth of BPCL is (4.3028).and OIL INDIA also increase the growth value is (4.1068). IOC the growth (0.2612). There is a phenomenal growth in HPCL. 2.SECTOR ANALYSIS The above table inferred that the growth of BSE IT is 1.331 against the growth of BSE BANKEX of 1.296 there is a phenomenal growth in BSE IT sector. The above table shows that the growth of BSE BANKEX is 1.296 against the growth of BSE AUTO of 1.216. There is a phenomenal growth in BSE BANKEX. The above table shows that the growth of BSE BANKEX is 1.296 against the growth of BSE CEMENT of 0.039. There is a phenomenal growth in BSE BANKEX The above table shows that the growth of BSE BANKEX is 1.296 against the growth of BSE OIL of 0.553. There is a phenomenal growth in BSE OIL The above table shows that the growth of BSE IT is 1.331 against the growth of BSE AUTO of 1.216. There is a phenomenal growth in BSE IT The above table shows that the growth of BSE CEMENT is 0.039 against the growth of BSE OIL of 0.553. There is a phenomenal growth in BSE OIL. STANDARD DEVIATION The above table inferred that the return of BSE IT is 5.188.BSE BANKER return is 4.985 and BSE AUTO is 4.546.and BSE OIL return is 2.116,return on BSE Cement Compare to five sectors BSE IT face high risk and return is more than other sectors. BETA ANALYSIS The Beta analysis reveals the risk factor of the sectors. From the above table, it is inferred that Bank sector has the negative result, Viz the IT sector has the negative result. When preferring the investment avenue on the basis of risk, Both Bank and IT sector is not preferable.

 The above table inferred that the Bank sector has the positive result, Viz the Auto sector also positive result. When proffering the investment avenue on the Auto is high risk and return has high. The above table shows that the risk of Cement is more than other sectors. The Bank has negative result. So compare to Bank sector, Cement sector is more return. So investor preferring the Cement sector has high return. The above table inferred that the Bank sector has the positive result, Viz the Oil sector also positive result. When preferring the investment avenue on the Oil is high risk and return has high. The above table shows that the risk of BSE Auto is more than other sectors. The BSE IT has positive result. So compare to IT sector, Auto sector is more return. So investor preferring the Auto sector has high return The above table inferred that the Oil sector has the positive result, Viz the Cement sector has the negative result. When preferring the investment avenue on the Oil is high risk and return has high.

PERFORMANCE ANALYSIS The above table shows that SENSEX point decreases during November & December. It is increases during the month of December & January. After February it is found that it states fluctuating trend. In the NSE points there is an decrease during November & December. Over all it is inferred that there is an decrease in SENSEX point than NSE point during November & December.

 SHARP MEASURES From the above table it can be inferred that the highest measure attributed to BSE BANK (9.07), and the lowest measures is for BSE CEMENT (-2.87). It indicates the excess returned earned on the portfolio per unit of total risk.

TREYNOR MEASURES This indicates the excess return earned per unit of funds risk. From the above table it is further classification that BSE CEMENT (6.06) and BSE OIL (1.44) also has performed well.

4.2. SUGGESTIONS Based on the analysis of BANKING through moving average. It is suggested to & holds the share of BANKING sector for 6 month and then the investor can sell those shares.

It is observed that the Automobile sector has more fluctuation during the period under study, so the Automobile sector shares are taken for intra-day trading it is better for the investors.

It is recommended that the investor can sell out their IT sector shares due to vast fluctuation in the IT sector.

Investors are highly interest over equity type for their investment because of long term and low Risk when compare to Oil Sector and Bank sector, IT sector, Automobile sector, Cement sector.

Investors were expecting quick service and response from the cement sector, so the cement sector can improve the facility in order to satisfy the expectation of the customer

It is better to enter the stock market after analyzing the risk factor of the scrips. Timing is very important for entry and exit from the stock market. To have a better entry and exit, the investor should analyze the market with good technique.

Grape vine rumors should be avoided to have better market investigation. Decision in buying and selling of shares should be individualistic for investor and should not believe the third person. The investor should invest their money in different sectors, so that the risk can be minimized.

One should know the difference between investing and speculating. The investor should know which category they belong. Before investing the investor should analyze the performance of the particular scrips. CHAPTER -5 5.1. CONCLUSION

Financial markets have seen a sea change. Indian markets are started to dominate the Indian economy. We should gain from market with proper protection. The markets have become interlinked, now worldwide all stock market are based on net trading already de-materialization has taken our market one step forward. Indian investors were introduced to a level of speed and safely in their transaction execution. This study has helped in identification sectors on which investors can hold their investment like BANKEX and IT SECTORS, AUTOMOBILE SECTORS and CEMENT SECTORS also whose investors have to make an exit like OIL SECTORS.

BIBLIOGRAPHY Punithavathy Pandian, Security Analysis And Portfolio Management, 2007 Edition, Vikas Publication, Newdelhi.

Bhalla .V.K, Investment Management (Security Analysis And Portfolio Management), 1997 Edition, Sultan Chand & Sons. Bruce Feibel.J, Investment Performance Measurement, 2003 Edition, Pandey.I.M, Financial Managment, Ninth Edition, Vikas Publication, Newdelhi. Martin.J Pring Technical Analysis Explained: The Sucessful Investors Guide To Spotting. 2003 Edition Tata Mcgraw-Hill Pubilcation. C.R.Kothari Research Methodology Methods & Techniques, Revised Second Edition, New Age International Publishers

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