DECLARATION

I, the undersigned, hereby declare that the project report entitled “HEDGING
TECHNIQUES IN INDIAN STOCK MARKET” carried out at “HDFC” is my original
work written and submitted by me in partial fulfilment of master’s degree in
business administration of OSMANIA UNIVERSITY. I also declare that the
project has not been submitted earlier in any other university or institution.

Date: signature of the student

 ABSTRACT
Participants in the stock market range from small individual stock investors to large edge
fund traders, who can be based anywhere in the world. Their orders usually end up with a
professional at a stock exchange, who executes the order of buying or selling.
From experience it is known that investors may” temporarily “move financial raises away
from their long-term aggregate price ‘trends ‘. (positive or up trends or refer to as bull
markets; negative down trends are prefer to as bear, markets). over reactions may occur so
that excessive optimism (euphoria) may drive prices unduly high are excessive pessimism
may drive prices unduly low. Economists continue to debate whether financial markets are
generally efficient.
According to one interpretation of the efficient market hypothesis (EMH),only changes in
fundamental factors , such as outlook for margins , profits are dividends ought to effect
share prices beyond the short term, were random ‘noise’ in the system prevail.(but this
largely theoretic academic view point-known as ‘ hard ’EMH-also predicts that little are no
trading should takes place ,contrary to fact , since prices are already at are near equilibrium
, the hard efficient-market hypothesis surely tested and doesn’t explain the cause of event
such as the stock market crash in 1987 , when the dough jones index plummeted 22.6% the
-largest- ever one day fall in the united states .
This event demonstrated that share prices can gall dramatically even though, to this day, it
is impossible to fix a generally agreed definite cause to: a thorough search failed to detect
any responsible ‘development that might have accounted for the crash (but note that such
events are predicted to occur strictly by chance, although very rarely.)
 ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep since of gratitude to the
authorities (HDFC).for giving the opportunity to undertake this project work in their
esteemed organisation. I profusely thank company guide.
My sincere thanks to honourable SHRI.HARIKA DIRECTOR & Mrs SUBHA PRADHA head of
department of AURORAS PG COLLEGE (MCA), Uppal, for her guidance and suggestion for
completion of the project and my project guide Kusuma.
For the kind encouragement and constant support extended in completion of this project
work. From the bottom of my heart.
I am also thankful to those who have incidentally helped me, through their valued guidance,
co-operation and unstinted support during the course of my project.

B.SRINIVAS
 TABLE OF CONTENTS
S.NO: CONTENTS PAGE
NO.
CHAPTER-1 1-9
a) INTRODUCTION
b) SCOPE OF THE STUDY
c) NEED AND IMPORTANCE OF STUDY
d) OBJECTIVES OF THE STUDY
e) METHODOLOGY OF THE STUDY
f) LIMITATIONS OF THE STUDY
CHAPTER-2 10-59
a] REVIEW OF LITERATURE

CHAPTER-3 60-82
a] INDUSTRY PROFILE
b] COMPANY PROFILE
CHAPTER-4 83-97
a] DATA ANALYSIS AND
INTERPRETATION
CHAPTER-5 98-103
a] FINDINGS
b] SUGGESTION
c] CONCLUSION
d] BIBILIOGRAPHY