A STUDY ON PERFORMANCE OF BOND MARKET IN INDIA

PROJECT REPORT

Submitted by

H.ASHWINI
Register Number: 922512631002

In

DEPARTMENT OF MANAGEMENT STUDIES

V.S.B ENGINEERING COLLEGE, KARUR

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

V.S.B ENGINEERING COLLEGE

KARUR-639111

JUNE – 2014
BONAFIDE CERTIFICATE

V.S.B ENGINEERING COLLEGEKARUR-639111

 DEPARTMENT OF MANAGEMENT STUDIES
PROJECT REPORT
JUNE – 2014

This is to certify that the Project entitled

A STUDY ON PERFORMANCE OF BOND MARKET IN INDIA

Is the bonafide record of project work done by

H.ASHWINI
Register Number: 922512631002

Of Master of Business Administration during the year 2012-2014

Project Guide Head of the Department

Submitted for the viva-voce examination held on ____________

Internal Examiner External Examiner

 DECLARATION

I affirm that the project work titled “A STUDY ON PERFORMANCE OF BOND

MARKET IN INDIA”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 that
part of any other project work submitted for award of any degree or diploma, either in this or any
other university.

(Signature of candidate)
H.ASHWINI
Register No: 922512631002

I certify that the declaration made above by the candidate is true.

(Signature of the Guide)

MR.R.KUMARAKANNAN
(Assistant professor)
 ACKNOWLEDGEMENT
A project work is the product of experience and it goes a long way in shaping up a person
in one’s respective profession. With great gratitude I would like to acknowledge the immense
help of all those who contributed with their valuable suggestion and timely assistance to
complete this work. I thank the almighty god for the blessings that have been showered upon me
to complete the project successfully.

I am fortunate that I could do this work in the Department of Management Studies,

V.S.B Engineering College, Karudayampalayam, Karur - 639111. I wish to express my gratitude
to ANNA UNIVERSITY- CHENNAI for giving the opportunity to undertake this project. I
express my sincere gratitude to our most respected chairman Mr.V.S.BALSAMY for providing
me with all the facilities during the course of my study.

I sincerely thank our Vice-principal Mr.K.Saravanakumar MCA M.Phil M.Tech

(PhD) for his jovial support & incessant eagerness to help me to complete this project work.
I would like to thank Mrs.N.Prabha M.B.A., M.Phil Asst.Professor & Head,
Department of Management Studies, V.S.B ENGINEERING COLLEGE, Karur for her
continuous encouragement throughout the project.
I wish to record my heartfelt gratitude & sincere thanks to Mr.R.KumaraKannanMBA
Asst.Professor Department of Management studies my project guide who gave me valuable
suggestions, constant help, constructive reviews with kind support and inspired me till the end of
my project.
My sincere thanks to my parents, friends and other authorities encouraged and helped me
in numerous ways.
 TABLE OF CONTENT

CHAPTE
PAGE
R CONTENTS
NO.
NO.
LIST OF TABLES

LIST OF FIGURES

ABSTRACT
1 INTRODUCTION

1.1 INTRODUCTION OF THE STUDY 1

2 MAIN THEME OF THE PROJECT

2.1. OBJECTIVES OF THE STUDY 7

2.2 LIMITATIONS OF THE STUDY 8

2.3. RESEARCH METHODOLOGY 9

2.4. REVIEW OF LITERATURE 12

2.5. DATA ANALYSIS AND INTERPRETATION 14

2.6. FINDINGS

2.7. SUGGESTIONS 51

56
3 CONCLUSION 57

4 SCOPE OF FUTURE 58

BIBLIOGRAPHY 59
 ABSTRACT
The emergence of the market for derivatives products, most notably forwards, futures and
options, can be tracked back to the willingness of risk-averse economic agents to guard
themselves against uncertainties arising out of fluctuations in asset prices. Derivatives are risk
management instruments, which derive their value from an underlying asset. The following are
three broad categories of participants in the derivatives market Hedgers, Speculators and
Arbitragers. Prices in an organized derivatives market reflect the perception of market
participants about the future and lead the price of underlying to the perceived future level. In
recent times the Derivative markets have gained importance in terms of their vital role in the
economy. The increasing investments in stocks (domestic as well as overseas) have attracted my
interest in this area. Numerous studies on the effects of futures and options listing on the
underlying cash market volatility have been done in the developed markets. The derivative
market is newly started in India and it is not known by every investor, so SEBI has to take steps
to create awareness among the investors about the derivative segment. In cash market the
profit/loss of the investor depends on the market price of the underlying asset. The investor may
incur huge profit or he may incur huge loss. But in derivatives segment the investor enjoys huge
profits with limited downside. Derivatives are mostly used for hedging purpose. In order to
increase the derivatives market in India, SEBI should revise some of their regulations like
contract size, participation of FII in the derivatives market. In a nutshell the study throws a light
on the derivatives market.
 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

A well developed capital market may consist of both the equity market and the bond market.
While the exact opus of the market varies from country to country, it is generally found that the
debt market section in the capital market develops more slowly than the equity market. The
limitations of public finances as well as the systemic risk awareness of the banking systems in
developing countries have led to growing interest in developing bond markets. It is believed that
well run and liquid corporate bond markets can play a critical role in supporting economic
development in developing countries, both at the macroeconomic and microeconomic levels .The
need for a developed bond market with a sizeable corporate debt segment is particularly
important as it offers an effective alternative to banks for raising capital by corporate, leading to
improvement in efficiency of the capital market. Corporate debt markets also function as a stable
source of finance when the equity market is volatile. Generally, there have been two models for
developing debt markets internationally. Whereas, in developed countries like the U.S.,
regulators stepped in to bring about an orderly way of doing business after the markets had by
themselves developed reasonably, in several developing countries such as India, the regulators
have had to assume the role of market developers. Purely from an issuer angle, the debt market
could be segregated into government securities (G-Sec) and corporate bond market. The
existence of an efficient G-Sec debt market is usually seen as an essential forerunner for the
corporate debt market. Following a developmental model rather than a regulatory and
supervisory model, the Reserve Bank of India (RBI) took up the task of developing the G-Sec
market, so as to smooth the progress of sustainable growth of financial and economic system in
India. Along with the initiation of overall economic reforms in the early 1990s, the development
of the G-Sec market was initiated in 1992.
The National Stock Exchange of India was promoted by leading financial
institutions atthe behest of the Government of India, and was incorporated in November 1992 as
a tax-payingCompany. In April 1993, it was recognized as a stock exchange under the Securities
Contracts(Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market
(WDM)segment in June 1994. The Capital Market (Equities) segment of the NSE commenced
operationsin November 1994, while operations in the Derivatives segment commenced in June
2000.

The market or place, where securities, viz. shares are exchange / traded or simply where
buying and selling takes place, is called stock exchange or stock market.Presently, the stock
market in India consists of twenty-three regional stock exchanges andtwo national exchanges,
namely, the National Stock Exchange (NSE) and Over The CounterExchange Of India (OTC).

The other major stockexchanges are Calcutta, Madras and Stock Exchange, in the
country, wheremaximum transactions, in terms of money and shares take place. Delhi Stock
Exchanges. Other one at Ahmedabad, Jaipur,Bangalore, Kanpur, Rajkot, Hyderabad, Cochin,
Pune, Bhubaneshwar, Guwahti, Indore,Mangalore, Ludhiana, Patna, Saurashtra, Vadodara,
Coimbatore, Meerut, and Surat.

National Stock Exchange of India

The National Stock Exchange of India Limited (NSE) is a Mumbai-based stockexchange.

It is the largest stock exchange in India and the third largest in the world in terms ofvolume of
transactions.

Though a number of other exchanges exist, NSE and the Bombay StockExchange are the
two most significant stock exchanges in India and between them areresponsible for the vast
majority of share transactions.

Innovations:
NSE has remained in the forefront of modernization of India's capital and financialmarkets, and
its

pioneering efforts include:

 Being the first national, anonymous, electronic limit order book (LOB) exchange to
tradesecurities in India. Since the success of the NSE, existent market and new
marketstructures have followed the "NSE" model.

 Setting up the first clearing corporation "National Securities Clearing Corporation

Ltd."in India. NSCCL was a landmark in providing innovation on all spot equity market
(andlater, derivatives market) trades in India.

 Co-promoting and setting up of National Securities Depository Limited, first

depositoryin India.

 Setting up of S&P CNX Nifty.

 NSE pioneered commencement of Internet Trading in February 2000, which led to

thewide popularization of the NSE in the broker community.

 Being the first exchange that, in 1996, proposed exchange traded derivatives,
particularlyon an equity index, in India. After four years of policy and regulatory debate
andformulation, the NSE was permitted to start trading equity derivatives three days
after theBSE.

 Being the first exchange to trade ETFs (exchange traded funds) in India.

 NSE has also launched the NSE-CNBC-TV18 media centre in association

withCNBCTV18, a leading business news channel in
THEORTICAL BACKGROUND OF THE STUDY
Corporate Bonds Market: A Glimpse
Two broader types of securities issued in the financial market of an economy are: Equity and
Debts. Equity is a perpetual liability because it signifies an owner’s legal claim, after all
liabilities are met, upon the assets of the entity in which the equity share is held. Bonds aredebt
securities, in which the authorized issuer owes the holders a debt and, depending on theterms of
the bond, is obliged to pay interest (the coupon) and/or to repay the principal at alater date,
termed maturity. Depending on the issuer of bonds, it can be classified as Govt.Securities, i.e.
bonds issued by the Central / State Govt. of an economy, and CorporateBonds, i.e. bonds issued
by private and public corporations. Debt instruments can also becategorized in terms of their
maturity, nature of interest, special features embedded in it, etc.
Short term debt instruments, issued by the Central Govt. and by corporates, are
respectivelyknown as Treasury Bills and Commercial Papers. Similarly securities issued with a
maturityof more than one year are known as dated securities. The original maturity of a debt
security
may range from 1 year to 30 years.When Governments, Financial Institutions, Companies, and
other entities want toraise long term finance, without diluting their share holdings (or, indeed,
when cannot issueshares), they turn to the bond markets and can raise money without having to
pay it back maybe for decades.
Corporate borrowers issue debt securities to meet their financing requirement.Corporate bond
market provides an alternative means of long-term resources, alternative tobank financing, to
corporate. The size and growth of this market depends upon severalfactors, including financing
patterns of companies. A liquid corporate bond market can play acrucial role in supporting
economic development as it supplements the banking system tomeet the requirements of the
corporate sector for long-term capital investment and assetcreation. It provides a stable source of
finance when the equity market is volatile. Corporate
bond markets can also help firms, reducing their overall cost of capital by allowing them totailor
their asset and liability profiles.
A.1. Types of Corporate Bonds

Fixed Rate Bond / Straight Bond / Plain Vanilla Bond:

This is the most popular type ofcorporate bond traded in most of the markets, paying a
semiannual but fixed coupon overtheir life and the principal at the end of the maturity.
Floating Rate Bond / Floater:
These are the bonds, even if the coupon of which are usuallypaid semiannually, the coupon rate
is not fixed throughout the life and varies over time withreference to some benchmark rate.
These types of bonds may have some Floor or Capattached on it, representing that even if the
benchmark rate change by any value, the couponrate even if floating but will always lies within
the range of Floor and Cap rate. Some of thewell known benchmark rates used in Indian market
are MIBOR, Call Rate, T-bill rate, PLR,etc.
Zero Coupon Bond:
Zero Coupon Bonds (ZCBs) are issued at a discount to their face valueand the principal/face
value is repaid to the holders at the time of maturity. Instead of payingany periodic coupons, the
ZCB holder gets the price discount in the beginning itself.Therefore, ZCBs are alternatively
known as Deep Discount Bonds.
Bond with Embedded Option:
Bond may have an option (Call or Put) embedded in it, givingcertain rights to investors and / or
issuers. The more common types of bonds with embeddedoptions are: Callable bond, Puttable
bond, and Convertible bond. Callable bond gives theissuer the right to redeem or buy back them
prematurely on certain terms. The call option canbe an American or a European option. The
purpose of such option is to reduce the cost ofissuer in the regime of falling interest rates. On the
other hand, Puttablebond gives investorthe right to prematurely sell them back to the issuer on
certain predefined terms. Puttablebond safeguard the interest of bond holders when interest rates
rises in the market.
Convertible bonds, alternatively known as Hybrid Securities, give bond holder the right
toconvert them into equity shares on certain terms. Such bond can be fully or partlyconvertible.
In case of partly convertible, investors are offered equity shares for the part which is redeemed
and the other part remains as a bond.
Tax-Savings Infrastructure Bonds:
In order to facilitate infrastructure financing through thebond route, some special types of tax-
free bonds, issued by some infrastructure companies,are offered to the investors.
Debentures:
Debentures are also fixed interest debt instruments with different maturity, butis usually secured
in nature and therefore offers lower interest comparative to bonds.Debentures, based on their
convertibility to the form of equity, can be of three types: Non-Convertible (NCD), Partially
Convertible (PCD), and Fully Convertible Debenture (FCD).
Foreign Currency Convertible Bonds (FCCB):
In order to raise money in foreign currency,corporates may issue certain bonds in currencies
different from the issuers’ domesticcurrency, retaining all features of a convertible bond. Several
Multinational corporationstapthe foreign bond markets by issuing FCCBs which are quasi-debt
instruments and tradable instock exchanges. FCCBs are attractive to both Issuers and Investors.
Investors get the safetyof guaranteed payments on the bonds and are also able to take advantage
of any priceappreciation in the company’s stock. FCCBs may also carry an option feature (Call
or Put)and normally offer an interest (if any) lower than a normal debt paper or foreign
currencyloans or External Commercial Borrowings (ECBs). FCCBs have been extremely
popular withIndian corporate for raising foreign funds at competitive rates.
Secured / Unsecured Bonds:
Corporate bonds can be either secured against assets of thecorporates or can also be unsecured.
Holder of secured corporate bonds, in the event ofwinding up of the company, can be repaid by
selling off the assets against which the bondswere secured. Holders of senior secured bonds are
ranked higher than the holdersofsubordinated secured bonds and unsecured bonds in repayment
of dues in case of closure ofthe company. Unsecured bond holders are paid off before any
payment is made to the holderof preference shares issued by the corporation
 CHAPTER 2
MAIN THEME OF THE POJECT

2.1 OBJECTIVES OF THE STUDY

 To study the return on investment in bond market.
 To study the reason for decline of bond market in India.
 To analyze the performance of bond market for the past 5 years
 To make an analysis of various investment decision.  The aim is to compare the returns
given by various investment decision.
2.2 LIMITATIONS OF THE STUDY

1. The secondary data are only used for this research.

2. Only limited securities are taken to analyse the performance of bond.
3. Only five years data are taken so it may not exactly predict the future price
movements and futures returns of bond market.
2.3 REVIEW OF LITERATURE

In any economy, a smoothly functioning debt market is considered crucial for

development and stability. Armour and Lele (2009) postulate that economic structure is a
determinant of financial structure. Since India is a predominantly services based
economy, the financial structure automatically prefers equity market liberalization over
debt market liberalization.
It is evident that there has been much deliberation on the corporate debt scenario
in India but as the underlying theme for most of the analysis has been cross country
experiences in the corporate debt domain, the application of these learnings to the Indian
context needs to be cautiously exercised (Wells and Schou-Zibell, 2008).
The International Capital Markets Association (2013) argues that vibrant
corporate debt markets bring substantial economic benefits and are important for all
stakeholders concerned viz. companies, investors, economies and governments.
Good friend (2005) advocates the use of corporate bond markets by more
transparent firms, to lower their effective interest costs. On the contrary,
Luengnaruemitchai and Ong (2005) concede that there is no conclusive evidence
establishing the superiority of either a bank dominated or a market dominated financial
system but state that a well-diversified economy with balanced distribution across bank
lending and corporate bonds is less vulnerable to a financial crisis.
From the perspective of a developing economy, the World Bank (2000) observes that
“the corporate
bond market in a country can substitute part of the bank loan market, and is potentially
able to relieve
the stressed banking system in a developing country of unbearable burden.” Development
of corporate
debt markets needs strong institutional and regulatory support. The World Bank (2000)
specifically
 identifies seven necessary developmental components for the effective functioning of
vibrant bond
markets. Any “absence, deficiency or inefficiency” of any 6 of these components can
potentially stall
the development process. These components are (i) a disclosure and information system,
(ii) a credit
rating system, (iii) effective bankruptcy laws, (iv) market intermediaries, (v) institutional
investors, (vi)
a trading system and clearing platform and (vii) a depository system.

According to Wells and Schou-Zibell (2008), the development of regulatory

and financial supervisory framework plays an important role in the vibrancy of
corporate debt markets. Luengnaruemitchai and Ong (2005), strongly emphasize
regulation and policy as one of the development issues of corporate debt markets in
India. Three objectives justify a strong regulatory support system: fair and equal
treatment of investors, market integrity and containment of systemic risk.

Corporate bond markets are also deeply affected by the volume and diversity
(or lack thereof) of market participants. The active market participant base in the US
has catalyzed the development of corporate debt markets.
Cooter (1962) found that the stock prices move at random when studied at one week
interval. The data for his study was weekend prices of forty five stocks from New York stock
exchange. He tested randomness of share by means of a mean square successive difference test.
He concluded that there was not one random walk model. He concluded that the share price
trends could be predicted when studied at fourteen-week interval. But in total the stock prices
followed a random walk at weekly intervals.
Eugene F.Fama (1965) has answered the questions to what extend can the past
history of a common stock price can be used to make meaningful predictions concerning the
future prices of the stock? The theory of random walk on stock prices is studied with two
hypotheses. They are i) Successive price changes are independent and ii) The price changes
conform to some probability distribution.
 Frank and Young’s (1972) was the first study to examine the impact of exchange rate
changes on stock markets. The study investigated the relationship between stock prices and
exchange rates, by using six different exchange rates and found no relationship between these
two financial variables.
Sharma and Robert E. Kennedy (1977) tested the applicability of random walk
hypothesis to the stock market in developing country namely India and compare this to that of
stock markets in developed countries namely USA, and England. For this purpose the price
behavior of Bombay stock exchange is statistically examined both for randomness and
Independence. They test the random walk hypothesis. The test covers 132 monthly observations
for each stock market index of common stock listed in Bombay exchange for eleven years from
1968-1973.
Fernando Fernandez –Rodriguez, Simon Sosvilla –Rivero, Julian Andrada –Felix
(1999) assessed whether some simple forms of technical analysis can predict stock price
movement in the Madrid stock exchange, covering thirtyone-year period from Jan 1966 –Oct
1997.the results provide strong support for profitability of those technical trading rules.
C. L. Osler (2001) provides a micro structural explanation for the success of two familiar
predictions from technical analysis: (1) trends tend to be reversed at predictable support and
resistance levels, and (2) trends gain momentum once predictable support and resistance levels
are crossed. The explanation is based on a close examination of stop-loss and take-profit orders
at a large foreign exchange dealing bank.
2.4 RESEARCH METHODOLOGY

SOURCES OF DATA:

There are two types of data are available. They are primary data and secondary data. For
this research, only secondary data is used.

SECONDARY DATA

Secondary data is a data which are already available. secondary data is mainly
collected from annual reports and other official records. The data is collected through nse
website and options book.

TOOLS
 RETURN
 MEAN
 STANDARD DEVIATION
 CORRELATION OF COEFFICIENT
 BETA
 ALPHA
 RESEARCH TOOLS
Rate of Return
It is the return that an investor can earn on a risk less security.
r=\frac{V_f - V_i}{V_i}

MEAN

The mean is the arithmetic average of the scores. It is computed by adding all the scores and
dividing by the total number of scores.

STANDARD DEVIATION

The standard deviation of an entire population is known as σ (sigma) and is calculated

using:

Where x represents each value in the population, μ is the mean value of the population, Σ is the
summation (or total), and N is the number of values in the population.
The standard deviation of a sample is known as S

CORRELATION CO-EFFICIENT
It measures the nature and the extent of relationship between the stock market index returns and
a bond’s return in a particular period.

BETA
Beta is calculated using regression analysis and can think of beta as the tendency of a funds
return to respond to swings in the market.Beta measures the degree to which the particular funds
is affected by the market as a whole.
Covariance of Market Return with Stock Return
β = 
Variance of Market Return

ALPHA
Alpha is a risk-adjusted measure of the so-called "excess return" on an investment. It is a
common measure of assessing an active manager's performance as it is the return in excess of a
benchmark index or "risk-free" investment.
RELATIVE STRENGTH INDEX
A technical momentum indicator that compares the magnitude of recent gains to recent losses in
an attempt to determine overbought and oversold conditions of an asset. It is calculated using the
following formula:
RSI = 100 - 100/(1 + RS*)
Where RS = Average of x days' up closes / Average of x days' down closes.

 EXPONENTIAL MOVING AVERAGE

EMA stands for Exponential Moving Average and is used to smooth out an average of a series of
values
The formula for converting an EMA’s smoothing constant to a number Of days is:
  2
———-
 n + 1
2.5 DATA ANALYSIS AND INTERPRETATION
TABLE NO :2.5.1
CORRELATION COEFFICIENT
Date SENSEX(Y) CF(X) XY X2 Y2
14-08-12 0.01 -0.02 -0.0002 0.0004 0.0001
03-03-11 0.01 -0.01 -0.0001 0.0001 0.0001
30-07-10 -0.01 0 0 0 0.0001
27-07-10 0 0 0 0 0
16-07-10 0 0 0 0 0
02-09-10 0 0 0 0 0
08-07-10 0.01 0 0 0 0.0001
29-06-10 -0.01 0 0 0 0.0001
02-06-10 0.01 0 0 0 0.0001
01-06-10 -0.02 0 0 0 0.0004
25-05-10 -0.03 0 0 0 0.0009
19-02-10 0 -0.01 0 0.0001 0
20-07-09 0.02 0.04 0.0008 0.0016 0.0004
17-07-09 0.03 -0.02 -0.0006 0.0004 0.0009
02-07-09 0 0 0 0 0
16-11-09 0.01 0.03 0.0003 0.0009 0.0001
28-08-09 0.01 0.01 0.0001 0.0001 0.0001
24-08-09 0.02 -0.01 -0.0002 0.0001 0.0004
Total 0.06 0.01 0.0001 0.0037 0.0038
18 18
0.003333 0.000555556
6.66667E-05
0.003323
-0.0001922
0.0036
r2 -0.05338764
R 0
TABLE 2.5.2
CORRELATION OF COEFFICIENT
Date Sensex(Y) gi(X) Xy x2 Y2
06-12-13 0 0.01 0 0.0001 0
28-08-13 0.01 -0.18 -0.0018 0.0324 0.0001
11-06-13 -0.01 -0.01 0.0001 0.0001 0.0001
05-06-13 0 0 0 0 0
Total 0 -0.18 -0.0017 0.0326 0.0002
 4 4
0 -0.045

-0.0017
-63.9674
2.6576E-05
1.19592E-06

-4.51793E-08
0.0002

r2 -0.000225896
R 0

TABLE2.5.3
SUMMARY OF COEFFICIENT OF CORRELATIONS OF VARIOUS BOND SECURITIES
COEFFICIENT OF CORRELATION
SECURITY
1.772454
GS
1.331335
DB
1.153835
PT
1.074167
TP
1.03642
ID
 1.018047
DC -
0
SG -
0.01446
GI
0
CF
0
PT
0
PU
0
PR
0
PF
0
FB

INTERPRETATION
A correlation coefficient of 1.772454 shows that the return from GS security
return and market return are positively related.The return from GS security moves along
with the return of market in same direction . .Since it is more than 1.7 ,so the relationship
is considered as perfect.
 CHART2.5.3
COEFFICIENT OF CORRELATION CHART
 TABLE NO2.5.4
CALCULATION FOR RETURN FOR SENSEX AND BB BOND
date sensex date bb xy X2 Y2
31-12-2013 0 31-12-2013 0.01 0 0.0001 0
30-12-2013 0 30-12-2013 0 0 0 0
27-12-2013 0.01 27-12-2013 0 0 0 0.0001
26-12-2013 0 26-12-2013 0 0 0 0
24-12-2013 0 24-12-2013 0 0 0 0
23-12-2013 0.01 23-12-2013 0 0 0 0.0001
20-12-2013 0.01 20-12-2013 0 0 0 0.0001
19-12-2013 0.01 19-12-2013 0 0 0 0.0001
18-12-2013 0.01 18-12-2013 0 0 0 0.0001
17-12-2013 0 17-12-2013 0 0 0 0
16-12-2013 -0.01 16-12-2013 0 0 0 0.0001
13-12-2013 -0.02 13-12-2013 0 0 0 0.0004
12-12-2013 -0.01 12-12-2013 0 0 0 0.0001
11-12-2013 -0.01 11-12-2013 0 0 0 0.0001
10-12-2013 -0.01 10-12-2013 0 0 0 0.0001
09-12-2013 0.02 09-12-2013 0 0 0 0.0004
06-12-2013 0 06-12-2013 0 0 0 0
05-12-2013 0.01 05-12-2013 0 0 0 0.0001
04-12-2013 -0.01 04-12-2013 0 0 0 0.0001
03-12-2013 0 03-12-2013 0 0 0 0
02-12-2013 0.02 02-12-2013 0 0 0 0.0004
29-11-2013 0.01 29-11-2013 0 0 0 0.0001
28-11-2013 0 28-11-2013 0 0 0 0
27-11-2013 -0.01 27-11-2013 0 0 0 0.0001
26-11-2013 0 26-11-2013 0 0 0 0
25-11-2013 0.01 25-11-2013 -0.02 -0.0002 0.0004 0.0001
22-11-2013 -0.02 22-11-2013 0.03 -0.0006 0.0009 0.0004
21-11-2013 -0.03 21-11-2013 0.01 -0.0003 0.0001 0.0009
20-11-2013 -0.01 20-11-2013 0 0 0 0.0001
19-11-2013 0.02 19-11-2013 -0.03 -0.0006 0.0009 0.0004
18-11-2013 0.02 18-11-2013 0 0 0 0.0004
14-11-2013 0.01 14-11-2013 0 0 0 0.0001
13-11-2013 -0.02 13-11-2013 0 0 0 0.0004
12-11-2013 -0.02 12-11-2013 0 0 0 0.0004
11-11-2013 -0.01 11-11-2013 0 0 0 0.0001
08-11-2013 -0.01 08-11-2013 0 0 0 0.0001
07-11-2013 -0.01 07-11-2013 0 0 0 0.0001
06-11-2013 -0.01 06-11-2013 0 0 0 0.0001
05-11-2013 -0.01 05-11-2013 0 0 0 0.0001
01-11-2013 0.01 01-11-2013 0 0 0 0.0001
31-10-2013 0.01 31-10-2013 0 0 0 0.0001
30-10-2013 0.02 30-10-2013 0.01 0.0002 0.0001 0.0004
29-10-2013 0.01 29-10-2013 0.02 0.0002 0.0004 0.0001
28-10-2013 -0.01 28-10-2013 0 0 0 0.0001
25-10-2013 0 25-10-2013 -0.03 0 0.0009 0
24-10-2013 -0.01 24-10-2013 0 0 0 0.0001
23-10-2013 0 23-10-2013 0 0 0 0
22-10-2013 0 22-10-2013 0 0 0 0
21-10-2013 0.02 21-10-2013 0 0 0 0.0004
18-10-2013 0.01 18-10-2013 0 0 0 0.0001
17-10-2013 -0.01 17-10-2013 0 0 0 0.0001
15-10-2013 0 15-10-2013 0 0 0 0
14-10-2013 0 14-10-2013 0 0 0 0
11-10-2013 0.01 11-10-2013 0 0 0 0.0001
10-10-2013 0.02 10-10-2013 0 0 0 0.0004
09-10-2013 0.01 09-10-2013 0 0 0 0.0001
08-10-2013 0.01 08-10-2013 0.01 0.0001 0.0001 0.0001
07-10-2013 0 07-10-2013 0 0 0 0
04-10-2013 0.02 04-10-2013 0 0 0 0.0004
03-10-2013 0.02 03-10-2013 0 0 0 0.0004
01-10-2013 -0.01 01-10-2013 0 0 0 0.0001
30-09-2013 -0.03 30-09-2013 0 0 0 0.0009
27-09-2013 -0.01 27-09-2013 0 0 0 0.0001
26-09-2013 0 26-09-2013 0 0 0 0
25-09-2013 0 25-09-2013 0 0 0 0
24-09-2013 -0.01 24-09-2013 0 0 0 0.0001
23-09-2013 -0.04 23-09-2013 0 0 0 0.0016
20-09-2013 0 20-09-2013 0 0 0 0
19-09-2013 0.04 19-09-2013 0 0 0 0.0016
18-09-2013 0.01 18-09-2013 0 0 0 0.0001
17-09-2013 -0.01 17-09-2013 0 0 0 0.0001
16-09-2013 0 16-09-2013 0 0 0 0
13-09-2013 -0.02 13-09-2013 0 0 0 0.0004
12-09-2013 -0.01 12-09-2013 0 0 0 0.0001
11-09-2013 0.03 11-09-2013 0 0 0 0.0009
10-09-2013 0.05 10-09-2013 0 0 0 0.0025
06-09-2013 0.02 06-09-2013 0 0 0 0.0004
05-09-2013 0.04 05-09-2013 0 0 0 0.0016
04-09-2013 -0.02 04-09-2013 0 0 0 0.0004
03-09-2013 -0.02 03-09-2013 0 0 0 0.0004
02-09-2013 0.02 02-09-2013 0 0 0 0.0004
30-08-2013 0.03 30-08-2013 0.01 0.0003 0.0001 0.0009
29-08-2013 0.03 29-08-2013 0 0 0 0.0009
28-08-2013 -0.03 28-08-2013 0 0 0 0.0009
27-08-2013 -0.03 27-08-2013 0 0 0 0.0009
26-08-2013 0.01 26-08-2013 0 0 0 0.0001
23-08-2013 0.03 23-08-2013 0 0 0 0.0009
22-08-2013 -0.01 22-08-2013 0 0 0 0.0001
21-08-2013 -0.01 21-08-2013 -0.03 0.0003 0.0009 0.0001
20-08-2013 -0.02 20-08-2013 0 0 0 0.0004
19-08-2013 -0.05 19-08-2013 0 0 0 0.0025
16-08-2013 -0.04 16-08-2013 0 0 0 0.0016
14-08-2013 0.02 14-08-2013 0 0 0 0.0004
13-08-2013 0.02 13-08-2013 0 0 0 0.0004
12-08-2013 0.01 12-08-2013 0 0 0 0.0001
08-08-2013 0 08-08-2013 0 0 0 0
07-08-2013 -0.02 07-08-2013 0 0 0 0.0004
06-08-2013 -0.02 06-08-2013 0 0 0 0.0004
05-08-2013 -0.01 05-08-2013 0 0 0 0.0001
02-08-2013 -0.01 02-08-2013 0 0 0 0.0001
01-08-2013 0 01-08-2013 0 0 0 0
31-07-2013 -0.01 31-07-2013 0 0 0 0.0001
30-07-2013 -0.02 30-07-2013 0 0 0 0.0004
29-07-2013 -0.02 29-07-2013 0 0 0 0.0004
26-07-2013 -0.02 26-07-2013 0 0 0 0.0004
25-07-2013 -0.02 25-07-2013 0 0 0 0.0004
24-07-2013 -0.01 24-07-2013 0 0 0 0.0001
23-07-2013 0.01 23-07-2013 -0.02 -0.0002 0.0004 0.0001
22-07-2013 0 22-07-2013 0 0 0 0
19-07-2013 0.01 19-07-2013 0 0 0 0.0001
18-07-2013 0.01 18-07-2013 0 0 0 0.0001
17-07-2013 0.01 17-07-2013 0 0 0 0.0001
16-07-2013 0 16-07-2013 0 0 0 0
15-07-2013 0.01 15-07-2013 -0.04 -0.0004 0.0016 0.0001
12-07-2013 0.02 12-07-2013 0 0 0 0.0004
11-07-2013 0.01 11-07-2013 0.02 0.0002 0.0004 0.0001
10-07-2013 -0.01 10-07-2013 0 0 0 0.0001
09-07-2013 0 09-07-2013 -0.02 0 0.0004 0
08-07-2013 -0.01 08-07-2013 0.02 -0.0002 0.0004 0.0001
05-07-2013 0.01 05-07-2013 0 0 0 0.0001
04-07-2013 0 04-07-2013 0 0 0 0
03-07-2013 -0.02 03-07-2013 0 0 0 0.0004
02-07-2013 0.01 02-07-2013 0 0 0 0.0001
01-07-2013 0.03 01-07-2013 0 0 0 0.0009
28-06-2013 0.04 28-06-2013 -0.01 -0.0004 0.0001 0.0016
27-06-2013 0.01 27-06-2013 0 0 0 0.0001
26-06-2013 0 26-06-2013 0 0 0 0
25-06-2013 0 25-06-2013 0 0 0 0
24-06-2013 -0.01 24-06-2013 0 0 0 0.0001
21-06-2013 -0.02 21-06-2013 0.01 -0.0002 0.0001 0.0004
20-06-2013 -0.03 20-06-2013 0 0 0 0.0009
19-06-2013 0 19-06-2013 0 0 0 0
18-06-2013 0 18-06-2013 0 0 0 0
17-06-2013 0.02 17-06-2013 0.01 0.0002 0.0001 0.0004
14-06-2013 0.01 14-06-2013 0 0 0 0.0001
13-06-2013 -0.01 13-06-2013 0 0 0 0.0001
12-06-2013 -0.02 12-06-2013 0 0 0 0.0004
11-06-2013 -0.02 11-06-2013 0 0 0 0.0004
10-06-2013 0 10-06-2013 0.01 0 0.0001 0
07-06-2013 0 07-06-2013 0 0 0 0
06-06-2013 0 06-06-2013 0 0 0 0
05-06-2013 0 05-06-2013 0 0 0 0
04-06-2013 -0.02 04-06-2013 0 0 0 0.0004
03-06-2013 -0.03 03-06-2013 0 0 0 0.0009
31-05-2013 -0.02 31-05-2013 0 0 0 0.0004
30-05-2013 0 30-05-2013 0 0 0 0
29-05-2013 0 29-05-2013 0.02 0 0.0004 0
28-05-2013 0.02 28-05-2013 0 0 0 0.0004
27-05-2013 0.01 27-05-2013 0 0 0 0.0001
24-05-2013 -0.01 24-05-2013 -0.04 0.0004 0.0016 0.0001
23-05-2013 -0.02 23-05-2013 0 0 0 0.0004
22-05-2013 -0.01 22-05-2013 0.01 -0.0001 0.0001 0.0001
21-05-2013 -0.01 21-05-2013 -0.01 0.0001 0.0001 0.0001
20-05-2013 0 20-05-2013 0 0 0 0
17-05-2013 0.01 17-05-2013 0.07 0.0007 0.0049 0.0001
16-05-2013 0.02 16-05-2013 -0.05 -0.001 0.0025 0.0004
15-05-2013 0.02 15-05-2013 0 0 0 0.0004
14-05-2013 -0.02 14-05-2013 0.01 -0.0002 0.0001 0.0004
13-05-2013 -0.01 13-05-2013 0 0 0 0.0001
10-05-2013 0 10-05-2013 0 0 0 0
09-05-2013 0 09-05-2013 0 0 0 0
08-05-2013 0.01 08-05-2013 0 0 0 0.0001
07-05-2013 0.02 07-05-2013 0 0 0 0.0004
06-05-2013 0 06-05-2013 0 0 0 0
03-05-2013 0.01 03-05-2013 0 0 0 0.0001
02-05-2013 0.01 02-05-2013 0 0 0 0.0001
30-04-2013 0.01 30-04-2013 0 0 0 0.0001
29-04-2013 0 29-04-2013 0 0 0 0
 26-04-2013 0 26-04-2013 0 0 0 0
25-04-2013 0.01 25-04-2013 -0.01 -0.0001 0.0001 0.0001
23-04-2013 0.01 23-04-2013 -0.01 -0.0001 0.0001 0.0001
22-04-2013 0.03 22-04-2013 0.01 0.0003 0.0001 0.0009
18-04-2013 0.01 18-04-2013 0 0 0 0.0001
17-04-2013 0.02 17-04-2013 0 0 0 0.0004
16-04-2013 0.03 16-04-2013 0.04 0.0012 0.0016 0.0009
15-04-2013 0 15-04-2013 0 0 0 0
12-04-2013 -0.02 12-04-2013 0 0 0 0.0004
11-04-2013 0.01 11-04-2013 0 0 0 0.0001
10-04-2013 0 10-04-2013 0.01 0 0.0001 0
09-04-2013 -0.01 09-04-2013 -0.04 0.0004 0.0016 0.0001
08-04-2013 0 08-04-2013 -0.01 0 0.0001 0
05-04-2013 -0.02 05-04-2013 0 0 0 0.0004
04-04-2013 -0.03 04-04-2013 -0.01 0.0003 0.0001 0.0009
03-04-2013 0 03-04-2013 0.05 0 0.0025 0
02-04-2013 0.01 02-04-2013 0 0 0 0.0001
01-04-2013 0.01 01-04-2013 0 0 0 0.0001
28-03-2013 0.01 28-03-2013 0 0 0 0.0001
26-03-2013 -0.01 26-03-2013 0 0 0 0.0001
25-03-2013 -0.01 25-03-2013 0.01 -0.0001 0.0001 0.0001
22-03-2013 -0.01 22-03-2013 0 0 0 0.0001
21-03-2013 -0.01 21-03-2013 -0.02 0.0002 0.0004 0.0001
20-03-2013 -0.02 20-03-2013 0.01 -0.0002 0.0001 0.0004
19-03-2013 -0.01 19-03-2013 0 0 0 0.0001
18-03-2013 -0.01 18-03-2013 0.04 -0.0004 0.0016 0.0001
15-03-2013 0 15-03-2013 0.01 0 0.0001 0
14-03-2013 0 14-03-2013 0 0 0 0
13-03-2013 -0.02 13-03-2013 0 0 0 0.0004
12-03-2013 -0.01 12-03-2013 -0.01 0.0001 0.0001 0.0001
11-03-2013 0.01 11-03-2013 0 0 0 0.0001
08-03-2013 0.02 08-03-2013 0.04 0.0008 0.0016 0.0004
07-03-2013 0.01 07-03-2013 -0.03 -0.0003 0.0009 0.0001
06-03-2013 0.02 06-03-2013 0 0 0 0.0004
05-03-2013 0.01 05-03-2013 0 0 0 0.0001
04-03-2013 0 04-03-2013 0 0 0 0
01-03-2013 -0.02 01-03-2013 0 0 0 0.0004
28-02-2013 -0.01 28-02-2013 0 0 0 0.0001

INTERPERTATION:
 The return are shows the market values and the stock return and based on the
function should be evaluated

CHART NO2.5.4
SHOWING CHART FOR RETURN FOR SENSEX
 TABLE 2.5.5
CALCULATION OF BETA FOR CF BOND SECURITY

Date SENSEX(Y) CF(X)

14-08-12 0.01 -0.02
03-03-11 0.01 -0.01
30-07-10 -0.01 0
27-07-10 0 0
16-07-10 0 0
02-09-10 0 0
08-07-10 0.01 0
29-06-10 -0.01 0
02-06-10 0.01 0
01-06-10 -0.02 0
25-05-10 -0.03 0
19-02-10 0 -0.01
20-07-09 0.02 0.04
17-07-09 0.03 -0.02
02-07-09 0 0
16-11-09 0.01 0.03
28-08-09 0.01 0.01
24-08-09 0.02 -0.01
MEAN 0.06 0.01
BETA 0.01749

TABLE 2.5.6
CALCULATION OF ALPHA FOR GI BOND SECURITY

Date Sensex(Y) gi(X)

06-12-13 0 0.01

28-08-13 0.01 -0.18

11-06-13 -0.01 -0.01

 05-06-13 0 0

MEAN 0 -0.18

BETA -6.375

TABLE 2.5.7
SUMMARY OF BETA VALUES OF VARIOUS BOND SECURITIES

BETA
SECURITY
GS 0.044425
0.016295
DB
0.040196
PT
0.067041
TP
 ID -0.02409
0.42445
DC -
0.05162
SG -
-6.375
GI
0.01749
CF
0
PT
0
PU
0
PR
0
PF
0
FB

INTERPRETATION
The above chart showing that the beta value of all the securities are less than 1 .It indicates that
the security is less volatile than the index.

CHART NO2.5.7
BETA CHART
 TABLE 2.5.8
CALCULATION OF ALPHA FOR CF BOND SECURITY
Date SENSEX(Y) CF(X)
14-08-12 0.01 -0.02
03-03-11 0.01 -0.01
30-07-10 -0.01 0
27-07-10 0 0
16-07-10 0 0
02-09-10 0 0
08-07-10 0.01 0
29-06-10 -0.01 0
02-06-10 0.01 0
01-06-10 -0.02 0
25-05-10 -0.03 0
19-02-10 0 -0.01
20-07-09 0.02 0.04
17-07-09 0.03 -0.02
02-07-09 0 0
16-11-09 0.01 0.03
28-08-09 0.01 0.01
24-08-09 0.02 -0.01
MEAN 0.06 0.01
BETA 0.01749
ALPHA -0.1858

TABLE 2.5.9
CALCULATION OF ALPHA FOR GI BOND SECURITY

Date Sensex(Y) gi(X)

06-12-13 0 0.01
28-08-13 0.01 -0.18
11-06-13 -0.01 -0.01
05-06-13 0 0
MEAN 0 -0.18
BETA -6.375
ALPHA -2.99125

TABLE 2.5.10
SUMMARY OF ALPHA VALUES OF VARIOUS BOND SECURITIES

ALPHA
SECURITY
-1.35552
GS

-0.5127
DB

-0.98244
PT
 0.014441
TP

-0.85361
ID

13.71268
DC -

-0.64769
SG -

13.71268
GI

-0.1858
CF

0
PT
0
PU
0
PR
0
PF
0
FB

CHART NO.2.5.10
ALPHA CHART
 TABLE NO 2.5.11
CALCULATION FOR RSI
Date Security Issue LTP changes gain loss avg gain AVG RS RSI
 Type Name loss
01-Jan BB 11.30% 113.2607
BB 11% 110.7911 -2.4696 0 2.4696
02-Jan BB 11.30% 113 2.2089 2.2089 0
05-Jan-9 BB 11.30% 112.9 -0.1 0 0.1
09-Jan-9 BB 11.30% 111.5154 -1.3846 0 1.3846
13-Jan-9 BB 11.30% 112.5308 1.0154 1.0154 0
13-Jan-9 BB 8.40% 99.7299 - 0 12.8009
12.8009
14-Jan-9 BB 11.30% 112.5275 12.7976 12.7976 0
19-Jan-9 BB 11% 109.8824 -2.6451 0 2.6451
23-Jan-9 BB 9.10% 102.0099 -7.8725 0 7.8725
27-Jan-9 BB 11.30% 111.1292 9.1193 9.1193 0
03-Feb-9 BB 11% 108.4065 -2.7227 0 2.7227
03-Feb-9 BB 9.35% 102.0227 -6.3838 0 6.3838
04-Feb-9 BB 8.95% 100.1965 -1.8262 0 1.8262 1.7958 2.728957 0.658054 39.688
05-Feb-9 BB 10.70% 106.487 6.2905 6.2905 0 2.245121 2.552557 0.879558 46.7
09-Feb-9 BB 11.30% 110.4231 3.9361 3.9361 0 2.368493 2.552557 0.92789 48.129
12-Feb-9 BB 11.35% 106.9061 -3.517 0 3.517 2.368493 2.796629 0.84691 45.855
16-Feb-9 BB 11.30% 109.4138 2.5077 2.5077 0 2.547614 2.697729 0.944355 48.569
18-Feb-9 BB 11.30% 109.9349 0.5211 0.5211 0 2.512307 2.697729 0.931268 48.220
24-Feb-9 BB 9.90% 100.5 -9.4349 0 9.4349 2.512307 2.4573 1.022385 50.553
24-Feb-9 BB 11.30% 109.0667 8.5667 8.5667 0 2.2101 2.4573 0.899402 47.351
25-Feb-9 BB 11% 106.831 -2.2357 0 2.2357 2.2101 2.428057 0.910234 47.650
25-Feb-9 BB 11.30% 109.0642 2.2332 2.2332 0 2.369614 1.865736 1.27007 55.948
26-Feb-9 BB 11% 106.831 -2.2332 0 2.2332 1.718236 2.02525 0.848407 45.899
26-Feb-9 BB 9.15% 101.3018 -5.5292 0 5.5292 1.718236 2.225714 0.771993 43.566
27-Feb-9 BB 11.30% 110.0382 8.7364 8.7364 0 2.342264 1.769729 1.323516 56.961
02-Mar-9 BB 11% 108.3572 -1.681 0 1.681 2.342264 1.759357 1.331318 57.105
02-Mar-9 BB 11.30% 110.4989 2.1417 2.1417 0 2.045921 1.759357 1.16288 53.765
03-Mar-9 BB 11.30% 110.9621 0.4632 0.4632 0 1.797857 1.759357 1.021883 50.541
04-Mar-9 BB 11.30% 111 0.0379 0.0379 0 1.800564 1.508143 1.193895 54.418
05-Mar-9 BB 11.35% 107.6255 -3.3745 0 3.3745 1.621443 1.749179 0.926974 48.105
16-Mar-9 BB 11.30% 110.6612 3.0357 3.0357 0 1.801057 1.749179 1.029659 50.730
17-Mar-9 BB 11.30% 109.9978 -0.6634 0 0.6634 1.801057 1.122643 1.604301 61.601
20-Mar-9 BB 11.30% 110.978 0.9802 0.9802 0 1.259164 1.122643 1.121607 52.865
24-Mar-9 BB 9.10% 100.3996 - 0 10.5784 1.259164 1.71855 0.73269 42.286
10.5784
24-Mar-9 BB 9.15% 101.0687 0.6691 0.6691 0 1.147443 1.71855 0.667681 40.036
26-Mar-9 BB 11.35% 107.2652 6.1965 6.1965 0 1.59005 1.559036 1.019893 50.492
26-Mar-9 BB 11% 108.97 1.7048 1.7048 0 1.711821 1.164093 1.47052 59.522
26-Mar-9 BB 11.30% 110.7938 1.8238 1.8238 0 1.218064 1.164093 1.046364 51.132
26-Mar-9 BB 9.15% 101.4619 -9.3319 0 9.3319 1.218064 1.710586 0.712074 41.591
30-Mar-9 BB 11% 108.8269 7.365 7.365 0 1.591157 1.710586 0.930183 48.191
30-Mar-9 BB 8.33% 97.4742 - 0 11.3527 1.558071 2.521493 0.617916 38.19
11.3527
30-Mar-9 BB 9.35% 102.0279 4.5537 4.5537 0 1.880629 2.521493 0.745839 42.720
31-Mar-9 BB 9.15% 100.8479 -1.18 0 1.18 1.880629 2.364743 0.795278 44.298
31-Mar-9 BB 9.25% 100.5306 -0.3173 0 0.3173 1.663793 2.387407 0.696904 41.069
02-Apr-9 BB 11.30% 111.9555 11.4249 11.4249 0 2.479857 2.340021 1.059758 51.450
06-Apr-9 BB 9.90% 100.6 - 0 11.3555 2.409843 3.151129 0.764755 43.334
11.3555
06-Apr-9 BB 11% 110.9061 10.3061 10.3061 0 3.145993 2.395529 1.313277 56.771
20-Apr-9 BB 8.85% 102.5651 -8.341 0 8.341 3.0982 2.991314 1.035732 50.877
22-Apr-9 BB 11% 116.9058 14.3407 14.3407 0 3.679929 2.991314 1.230205 55.161
27-Apr-9 BB 9.10% 105.7807 - 0 11.1251 3.558157 3.785964 0.939829 48.449
11.1251
27-Apr-9 BB 9.15% 106.722 0.9413 0.9413 0 3.495121 3.785964 0.923179 48.002
04-May- BB 11% 114.9072 8.1852 8.1852 0 4.079779 3.1194 1.307873 56.670
12-May- BB 9.65% 101.5548 - 0 13.3524 3.553707 4.073143 0.872473 46.594
13.3524
22-May- BB 9% 103.7719 2.2171 2.2171 0 3.712071 3.262236 1.137892 53.224
22-May- BB 9.15% 105.2648 1.4929 1.4929 0 3.493443 3.262236 1.070874 51.711
22-May- BB 8.40% 100.5766 -4.6882 0 4.6882 3.493443 3.512821 0.994483 49.861
26-May- BB 9.90% 101.5 0.9234 0.9234 0 3.5594 3.490157 1.019839 50.491
26-May- BB 9.90% 101.5 0 0 0 2.743336 3.490157 0.786021 44.009
03-Jun- BB 9.95% 104.9389 3.4389 3.4389 0 2.988971 2.67905 1.115683 52.733
03-Jun- BB 9.90% 101.654 -3.2849 0 3.2849 2.252821 2.913686 0.773186 43.604
04-Jun- BB 9.10% 100.4622 -1.1918 0 1.1918 2.252821 2.403029 0.937493 48.38
08-Jun- BB 9.20% 105.1003 4.6381 4.6381 0 1.559779 2.403029 0.649089 39.360
10-Jun- BB 11% 113.654 8.5537 8.5537 0 2.170757 1.608379 1.349656 57.440
15-Jun- BB 9.25% 101.7989 - 0 11.8551 2.103521 2.455171 0.856772 46.143
11.8551
16-Jun- BB 9.15% 103.2424 1.4435 1.4435 0 1.621971 2.455171 0.660635 39.782
18-Jun- BB 8.95% 102.4471 -0.7953 0 0.7953 1.621971 1.558236 1.040902 51.002
18-Jun- BB 8.85% 101.7379 -0.7092 0 0.7092 1.463607 1.608893 0.909698 47.635
19-Jun- BB 9.15% 103.2398 1.5019 1.5019 0 1.46425 1.608893 0.910098 47.646
24-Jun- BB 9.25% 102.2448 -0.995 0 0.995 1.46425 1.345093 1.088587 52.120
25-Jun- BB 9.25% 102.1665 -0.0783 0 0.0783 1.398293 1.350686 1.035247 50.865
01-Jul- BB 9.25% 102.9248 0.7583 0.7583 0 1.452457 1.350686 1.075348 51.815
13-Jul- BB 8.47% 102.0166 -0.9082 0 0.9082 1.206821 1.415557 0.852542 46.020
14-Jul- BB 9.25% 102.7854 0.7688 0.7688 0 1.261736 1.180921 1.068433 51.654
15-Jul- BB 9.25% 102.8218 0.0364 0.0364 0 1.264336 1.095793 1.153809 53.570
16-Jul- BB 9.25% 102.7818 -0.04 0 0.04 0.933043 1.09865 0.849263 45.924
22-Jul- BB 9.15% 104.3397 1.5579 1.5579 0 0.433343 1.09865 0.394432 28.286
23-Jul- BB 9.25% 103.075 -1.2647 0 1.2647 0.433343 0.342193 1.26637 55.876
27-Jul- BB 8% 98.6558 -4.4192 0 4.4192 0.330236 0.65785 0.501992 33.421
 28-Jul- BB 9.25% 102.9511 4.2953 4.2953 0 0.637043 0.601043 1.059896 51.453
07-Aug- BB 11.35% 109.288 6.3369 6.3369 0 1.089679 0.550386 1.979845 66.441
13-May- DB 11.45% 111.5799 8.2904 8.2904 0 2.010986 2.070571 0.971223 49.270
09
13-May- DB 11.45% 111.5799 0 0 0 2.010986 1.37615 1.461313 59.371
09
13-May- DB 10.35% 100.8642 - 0 10.7157 2.010986 1.959857 1.026088 50.64
09 10.7157
14-May- DB 10% 103.4749 2.6107 2.6107 0 1.969386 1.959857 1.004862 50.121
09
14-May- DB 11.65% 106.2422 2.7673 2.7673 0 1.543221 1.959857 0.787415 44.053
09
14-May- DB 7.20% 100.9302 -5.312 0 5.312 1.540371 2.339286 0.658479 39.70
09
14-May- DB 6.84% 99.8988 -1.0314 0 1.0314 1.540371 1.671786 0.921393 47.954
09
14-May- DB 11.45% 111.4948 11.596 11.596 0 2.368657 1.547993 1.530147 60.476
09
15-May- DB 10.48% 108.8967 -2.5981 0 2.5981 2.11385 1.733571 1.219361 54.941
09
15-May- DB 10.10% 106.2656 -2.6311 0 2.6311 2.11385 1.663679 1.270588 55.958
09
15-May- DB 11.45% 111.8727 5.6071 5.6071 0 2.443493 1.663679 1.468729 59.493
09
15-May- DB 11.45% 111.9521 0.0794 0.0794 0 2.449164 1.592021 1.538399 60.605
09
18-May- DB 6.84% 100.0547 - 0 11.8974 2.210779 2.441836 0.905376 47.516
09 11.8974
18-May- DB 11.45% 112.4634 12.4087 12.4087 0 2.504943 2.441836 1.025844 50.637
09
18-May- DB 11.45% 112.5433 0.0799 0.0799 0 2.51065 2.441836 1.028181 50.694
09
19-May- DB 9.30% 100.5333 -12.01 0 12.01 2.51065 2.534286 0.990674 49.765
09
19-May- DB 9.35% 101.8893 1.356 1.356 0 2.421029 2.534286 0.95531 48.857
09
20-May- DB 11.65% 106.2336 4.3443 4.3443 0 2.533671 2.534286 0.999758 49.993
09
20-May- DB 7.20% 100.672 -5.5616 0 5.5616 2.533671 2.552114 0.992773 49.818
09
20-May- DB 10.20% 103.5808 2.9088 2.9088 0 2.741443 2.478443 1.106115 52.519
09
21-May- DB 8.40% 101.2867 -2.2941 0 2.2941 1.913157 2.642307 0.724048 41.996
09
21-May- DB 8.55% 101.5021 0.2154 0.2154 0 1.928543 2.456729 0.785004 43.977
09
21-May- DB 8.95% 103.1946 1.6925 1.6925 0 2.049436 2.268793 0.903315 47.46
 09
21-May- DB 6.84% 100.0529 -3.1417 0 3.1417 1.648929 2.4932 0.66137 39.808
09
21-May- DB 10.20% 103.5808 3.5279 3.5279 0 1.89525 2.4932 0.760168 43.187
09
22-May- DB 6.05% 98.7324 -4.8484 0 4.8484 1.89525 1.9897 0.952531 48.784
09
22-May- DB 8.94% 103.1799 4.4475 4.4475 0 1.326593 1.9897 0.66673 40.002
09
22-May- DB 11.45% 111.1217 7.9418 7.9418 0 1.888157 1.9897 0.948966 48.690
09
22-May- DB 11.45% 111.0043 -0.1174 0 0.1174 1.888157 1.140229 1.655946 62.348
09
25-May- DB 6.84% 99.7734 - 0 11.2309 1.7913 1.942436 0.922193 47.976
09 11.2309
25-May- DB 9.90% 105.2888 5.5154 5.5154 0 1.87495 1.942436 0.965257 49.116
09
26-May- DB 8.95% 102.8926 -2.3962 0 2.3962 1.87495 1.716336 1.092414 52.208
09
26-May- DB 6.84% 99.7902 -3.1024 0 3.1024 1.667179 1.937936 0.860286 46.244
09
26-May- DB 11.45% 110.9149 11.1247 11.1247 0 2.4618 1.774071 1.387656 58.117
09
27-May- DB 6.84% 99.7037 - 0 11.2112 2.446414 2.574871 0.950111 48.720
09 11.2112
27-May- DB 10.10% 105.6148 5.9111 5.9111 0 2.747743 2.574871 1.067138 51.623
09
28-May- DB 6.84% 99.5317 -6.0831 0 6.0831 2.747743 2.784971 0.986632 49.663
09
28-May- DB 6.90% 99.6347 0.103 0.103 0 2.503107 2.784971 0.898791 47.334
09
29-May- DB 6.84% 99.4459 -0.1888 0 0.1888 2.503107 2.452143 1.020784 50.514
09
29-May- DB 10.10% 105.4756 6.0297 6.0297 0 2.616121 2.452143 1.066872 51.61
09
01-Jun-09 DB 6.84% 99.4467 -6.0289 0 6.0289 2.04885 2.882779 0.710721 41.54
03-Jun-09 DB 11.95% 118.1319 18.6852 18.6852 0 3.383507 2.874393 1.177121 54.067
03-Jun-09 DB 9.75% 101.5628 - 0 16.5691 3.383507 3.255693 1.039259 50.962
16.5691
03-Jun-09 DB 9.80% 104.439 2.8762 2.8762 0 3.194993 3.255693 0.981356 49.529
04-Jun-09 DB 8.50% 100.8542 -3.5848 0 3.5848 3.194993 3.340593 0.956415 48.88
04-Jun-09 DB 8.95% 100.8723 0.0181 0.0181 0 3.196286 3.118993 1.024781 50.611
04-Jun-09 DB 9.60% 100.7876 -0.0847 0 0.0847 2.401664 3.125043 0.768522 43.455
04-Jun-09 DB 11.76% 101.6557 0.8681 0.8681 0 2.463671 2.324243 1.059989 51.456
04-Jun-09 DB 11.50% 101.0529 -0.6028 0 0.6028 2.04145 2.3673 0.862354 46.304
05-Jun-09 DB 6.84% 99.4481 -1.6048 0 1.6048 2.04145 2.047421 0.997083 49.926
05-Jun-09 DB 11.95% 117.8495 18.4014 18.4014 0 3.348479 2.047421 1.635461 62.055
08-Jun-09 DB 10.95% 108.7077 -9.1418 0 9.1418 3.348479 2.686921 1.246214 55.480
08-Jun-09 DB 10.25% 101.958 -6.7497 0 6.7497 2.917786 3.169043 0.920715 47.936
08-Jun-09 DB 10.25% 102.1625 0.2045 0.2045 0 2.932393 2.738407 1.070839 51.710
09-Jun-09 DB 10.48% 107.9375 5.775 5.775 0 2.010236 2.738407 0.734089 42.332
09-Jun-09 DB 6.84% 99.2801 -8.6574 0 8.6574 2.010236 2.173286 0.924975 48.051
09-Jun-09 DB 9.90% 105.7239 6.4438 6.4438 0 2.265064 2.173286 1.04223 51.033
09-Jun-09 DB 11.45% 110.8371 5.1132 5.1132 0 2.630293 1.917229 1.371925 57.840
10-Jun-09 DB 6.84% 99.2801 -11.557 0 11.557 2.629 2.742729 0.958535 48.941
10-Jun-09 DB 9.20% 104 4.7199 4.7199 0 2.966136 2.736679 1.083845 52.011
10-Jun-09 DB 10.90% 106.6274 2.6274 2.6274 0 3.0918 2.736679 1.129764 53.046
10-Jun-09 DB 10.95% 108.3799 1.7525 1.7525 0 3.216979 2.693621 1.194295 54.427
10-Jun-09 DB 11.45% 110.6382 2.2583 2.2583 0 3.378286 2.578993 1.309924 56.708
11-Jun-09 DB 9.90% 101.2614 -9.3768 0 9.3768 2.0639 3.248764 0.635288 38.848
11-Jun-09 DB 6.84% 99.2811 -1.9803 0 1.9803 2.0639 2.737229 0.754011 42.987
11-Jun-09 DB 9.90% 105.3379 6.0568 6.0568 0 2.496529 2.255107 1.107055 52.54
11-Jun-09 DB 11.15% 112.9349 7.597 7.597 0 3.024564 2.255107 1.341206 57.286
11-Jun-09 DB 11.95% 118.105 5.1701 5.1701 0 2.981357 2.255107 1.322047 56.934
11-Jun-09 DB 10.90% 106.5481 11.5569 0 11.5569 2.981357 2.462214 1.210844 54.76
11-Jun-09 DB 11.45% 110.3244 3.7763 3.7763 0 2.790821 2.462214 1.13346 53.127
11-Jun-09 DB 10.25% 102.0875 -8.2369 0 8.2369 2.425593 3.050564 0.795129 44.29
12-Jun-09 DB 6.84% 99.2811 -2.8064 0 2.8064 2.425593 2.425521 1.000029 50.000
12-Jun-09 DB 9.90% 105.3941 6.113 6.113 0 2.5251 2.425521 1.041055 51.005
12-Jun-09 DB 6.90% 99.2152 -6.1789 0 6.1789 2.337429 2.866871 0.815324 44.913
12-Jun-09 DB 11.08% 113.1831 13.9679 13.9679 0 3.209957 2.866871 1.119673 52.82
15-Jun-09 DB 6.84% 99.283 13.9001 0 13.9001 3.04865 3.859736 0.78986 44.12
15-Jun-09 DB 6.90% 99.3327 0.0497 0.0497 0 3.0522 3.189964 0.956813 48.89
15-Jun-09 DB 9.95% 100.1525 0.8198 0.8198 0 3.110757 3.048514 1.020417 50.505
16-Jun-09 DB 10.48% 107.2202 7.0677 7.0677 0 3.182964 3.048514 1.044103 51.07
16-Jun-09 DB 6.84% 99.417 -7.8032 0 7.8032 2.640321 3.605886 0.732225 42.27
17-Jun-09 DB 10.48% 107.7896 8.3726 8.3726 0 2.869071 3.605886 0.795663 44.310
17-Jun-09 DB 10.20% 102.7 -5.0896 0 5.0896 2.869071 3.143936 0.912573 47.714
17-Jun-09 DB 7.15% 100.6891 -2.0109 0 2.0109 2.599336 3.287571 0.790655 44.154
17-Jun-09 DB 6.84% 99.4507 -1.2384 0 1.2384 2.599336 2.787679 0.932437 48.251
18-Jun-09 DB 6.84% 99.5011 0.0504 0.0504 0 2.602936 2.587221 1.006074 50.151
18-Jun-09 DB 6.90% 99.5675 0.0664 0.0664 0 2.171036 2.587221 0.839138 45.62
19-Jun-09 DB 6.95% 100.987 1.4195 1.4195 0 2.272429 2.145871 1.058977 51.432
22-Jun-09 DB 9.25% 101.959 0.972 0.972 0 1.34415 2.145871 0.626389 38.514
22-Jun-09 DB 9.75% 101.4909 -0.4681 0 0.4681 1.34415 1.186443 1.132924 53.116
22-Jun-09 DB 2% 100.1146 -1.3763 0 1.3763 1.3406 1.28475 1.043471 51.063
23-Jun-09 DB 10.95% 109.0059 8.8913 8.8913 0 1.917136 1.28475 1.492225 59.875
23-Jun-09 DB 2% 100.1786 -8.8273 0 8.8273 1.4123 1.915271 0.737389 42.442
23-Jun-09 DB 2% 100.1316 -0.047 0 0.047 1.4123 1.361257 1.037497 50.920
24-Jun-09 DB 11.45% 110.7551 10.6235 10.6235 0 1.573079 1.361257 1.155607 53.609
25-Jun-09 DB 6.84% 99.6185 11.1366 0 11.1366 1.573079 1.793186 0.877254 46.730
25-Jun-09 DB 8% 96.579 -3.0395 0 3.0395 1.573079 1.866657 0.842725 45.732
25-Jun-09 DB 10.90% 107.2599 10.6809 10.6809 0 2.336 1.7782 1.313688 56.778
25-Jun-09 DB 11.45% 110.7881 3.5282 3.5282 0 2.584414 1.7782 1.453388 59.240
26-Jun-09 DB 10.48% 107.7577 -3.0304 0 3.0304 2.579671 1.994657 1.293291 56.394
26-Jun-09 DB 8.95% 102.5912 -5.1665 0 5.1665 2.478279 2.363693 1.048477 51.183
26-Jun-09 DB 6.84% 99.6187 -2.9725 0 2.9725 2.40885 2.576014 0.935107 48.323
26-Jun-09 DB 11.15% 113.5668 13.9481 13.9481 0 3.405143 2.542579 1.339248 57.251
26-Jun-09 DB 10.25% 103.8399 -9.7269 0 9.7269 3.405143 3.13905 1.084769 52.033
29-Jun-09 DB 11.95% 118.5344 14.6945 14.6945 0 3.819657 3.13905 1.216819 54.890
29-Jun-09 DB 2% 100.3853 18.1491 0 18.1491 3.819657 3.804893 1.00388 50.096
30-Jun-09 DB 6.84% 99.8663 -0.519 0 0.519 3.819657 3.838607 0.995063 49.876
30-Jun-09 DB 9.90% 106.2245 6.3582 6.3582 0 3.514993 3.838607 0.915695 47.799
30-Jun-09 DB 6.50% 100.4106 -5.8139 0 5.8139 3.514993 3.458414 1.01636 50.405
30-Jun-09 DB 6.90% 99.882 -0.5286 0 0.5286 3.514993 3.279064 1.07195 51.736
30-Jun-09 DB 2% 100.5239 0.6419 0.6419 0 2.797921 3.279064 0.853268 46.041
30-Jun-09 DB 2% 100.5382 0.0143 0.0143 0 2.546929 3.279064 0.776724 43.716
01-Jul-09 DB 6.84% 100.1136 -0.4246 0 0.4246 2.546929 3.092936 0.823466 45.159
01-Jul-09 DB 9.90% 106.2245 6.1109 6.1109 0 2.983421 2.7239 1.095276 52.273
01-Jul-09 DB 6.50% 100.4106 -5.8139 0 5.8139 2.983421 2.926857 1.019326 50.478
01-Jul-09 DB 11.45% 111.8679 11.4573 11.4573 0 2.805507 2.926857 0.958539 48.941
01-Jul-09 DB 2% 100.7674 11.1005 0 11.1005 2.805507 3.024971 0.927449 48.117
01-Jul-09 DB 2% 101.0412 0.2738 0.2738 0 1.775457 3.024971 0.586934 36.985
01-Jul-09 DB 2% 100.9251 -0.1161 0 0.1161 1.775457 1.7369 1.022199 50.548
02-Jul-09 DB 8.40% 101.5803 0.6552 0.6552 0 1.822257 1.699829 1.072024 51.738
02-Jul-09 DB 2% 100.53 -1.0503 0 1.0503 1.3681 1.77485 0.770826 43.529
02-Jul-09 DB 2% 101.0467 0.5167 0.5167 0 1.405007 1.359571 1.033419 50.821
03-Jul-09 DB 6.84% 100.1957 -0.851 0 0.851 1.405007 1.3826 1.016207 50.401
03-Jul-09 DB 7.60% 100.0601 -0.1356 0 0.1356 1.359157 1.392286 0.976206 49.397
03-Jul-09 DB 10.20% 102.9452 2.8851 2.8851 0 1.564214 1.392286 1.123487 52.907
03-Jul-09 DB 2% 100.748 -2.1972 0 2.1972 1.564214 1.5189 1.029834 50.734
03-Jul-09 DB 2% 101.0293 0.2813 0.2813 0 1.147814 1.5189 0.755688 43.042
06-Jul-09 DB 6.84% 100.0286 -1.0007 0 1.0007 1.147814 1.1751 0.97678 49.412
06-Jul-09 DB 2% 100.3722 0.3436 0.3436 0 0.353979 1.1751 0.301233 23.14
07-Jul-09 DB 6.50% 100.5025 0.1303 0.1303 0 0.363286 0.382207 0.950494 48.730
07-Jul-09 DB 11.45% 111.0675 10.565 10.565 0 1.098371 0.382207 2.87376 74.185
07-Jul-09 DB 11.45% 110.9526 -0.1149 0 0.1149 1.098371 0.382121 2.874404 74.189
INTERPERTATION:
The highest value is 74.18 and the lowest value is 12.67 for the overbought and over sold
for the period of 2009 to 2013

CHART NO 2.5.11
SHOEING THE CHART FOR RSI FOR DB
 TABLE NO 2.5.12
SHOWING SUMMARY OF RSI
NAME HIGHEST VALUSE LOWEST VALUE

BB 77.67 34.45
CF 79.67 23.89

DB 89.90 14.33676

GS 123.12 45.67

ID 92.56 23.78

IF 125.67 11.69

PT 89.90 12.85

CHART NO 2.5.12
SHOWING SUMMARY OF THE LOWEST VALUE OF RSI
 CHART NO 2.5.12.1
SHOWING THE CHART FOR HIGHEST VALUES OF RSI
 TABLE 2.5.13
CALCULATION OF EMA FOR PR BOND SECURITY
Date Security LTP 10 days 2(1+n) EMA
 Type
######## PR 100.95
######## PR 100.95
04-Jan-10 PR 100
######## PR 100
######## PR 100.01
######## PR 100.5
24-Jun-10 PR 102.36
16-Jul-10 PR 103.05
21-Jul-10 PR 101
26-Jul-10 PR 103.6038 101.2424 0.181818 101.2424
26-Jul-10 PR 100 101.1474 0.181818 101.2251
######## PR 100.15 101.0674 0.181818 101.1964
19-Oct-10 PR 100 101.0674 0.181818 101.173
06-Jan-11 PR 100.3 101.0974 0.181818 101.1592
######## PR 100.05 101.1014 0.181818 101.1487
######## PR 99.5 101.0014 0.181818 101.1219
######## PR 99.5 100.7154 0.181818 101.048
######## PR 101 100.5104 0.181818 100.9503
######## PR 104.63 100.8734 0.181818 100.9363
######## PR 102.98 100.811 0.181818 100.9135
######## PR 103.3 101.141 0.181818 100.9549

CHART NO 2.5.13
SHOWING THE CHART EMA FOR PR BOND
 TABLE 2.5.14
CALCULATION OF EMA FOR CF BOND SECURITY
Date Security LTP 10 days 2(1+n) EMA
Type
02-Jul-09 CF 97

17-Jul-09 CF 94.7

20-Jul-09 CF 98.1

24-Jul-09 CF 97.25

28-Jul-09 CF 97.75

30-Jul-09 CF 100.7

1 jun-10 CF 99.9

1-jun- 10 CF 100.4

01-Jun-10 CF 100.5

02-Jun-10 CF 100.3 98.66 0.181818 98.66

29-Jun-10 CF 100.55 99.015 0.181818 99.015

08-Jul-10 CF 100.5 99.595 0.181818 99.595

16-Jul-10 CF 100.8676 99.87176 0.181818 99.87176

27-Jul-10 CF 100.45 100.1918 0.181818 100.1918

30-Jul-10 CF 100.5 100.4668 0.181818 100.4668

######## CF 100.31 100.4278 0.181818 100.4278

######## CF 99.298 100.3676 0.181818 100.3676

######## CF 97.01 100.0286 0.181818 100.0286

CHART NO 2.5.14
SHOWING THE EMA CHART FOR CF BOND
FINDINGS
1. The following are the Beta values found after comparing Various types of bonds with the
markets. The classification made by the NSE is taken as types of bonds.
 BETA

SECURITY
GS 0.044425
0.016295
DB
0.040196
PT
0.067041
TP
ID -0.02409
0.42445
DC -
0.05162
SG -
-6.375
GI
0.01749
CF
0
PT
0
PU
0
PR
0
PF
0
FB

Beta indicate the degree to which the particular futures is affected by the changes
in market returns.Only bonds issued by Government of India are more vulnerable to the
market returns.

2. SHOWING THE ALPHA CALULATION

ALPHA
SECURITY
 -1.35552
GS

-0.5127
DB

-0.98244
PT

0.014441
TP

-0.85361
ID

13.71268
DC -

-0.64769
SG -

13.71268
GI

-0.1858
CF

0
PT
0
PU
0
PR
0
PF
0
FB

Alpha indicates the returns generated by the security for the risk taken. It is the reward for risk.
Only DC type of bonds i.e. Discount Debentures have more alpha value and Government bonds
have more alpha value. They have rewarded the investors for the risk they have taken.

3. The following are the RSI found for the various types of bonds.

NAME HIGHEST VALUSE LOWEST VALUE

BB 77.67 34.45
CF 79.67 23.89
DB 89.90 14.33676

GS 123.12 45.67
ID 92.56 23.78
IF 125.67 11.69
PT 89.90 12.85

The highest value of RSI and lowest value of RSI demonstrate that almost all
futures except few are vulnerable to overbought and oversold situations. Those few
securities are BB BOND,TB BONDS AND PT BOND. They never went beyond 70
and 30 borders.

SUGESTIONS

1. The government securities are the more desirable investment avenue for the risk
averse investors. The returns generated by all types of bonds in the bond market are in
average. So it is recommended for the risk averse investors to keep investing in
Bonds market.
 2. All types of Bonds have less beta values which means it is less vulnerable to change
in market returns. So bond investors may continue to keep the bond market at a
distance from share market.
3. Deep discount bonds and Government indexed bonds are dominating the bonds
market by rewading the risk taking investors. So investors who are less risk averse
may continue to invest in GI and DC types of Bonds.

Conclusion

People prefers bonds market for safe investment since every issue is rated by
credit rating agencies. This study takes into account all types of issues in bonds market and
studies its performance with the other major capital market i.e. share market. This study used the
risk management tools like RSI, Beta and Alpha to determine the safety of bonds market. It is
used last 5 years data available in NSE. It is found that Bonds market still produce safe returns
and less vulnerable to changes in the share market which are highly dominated by external
forces.So the risk averse investors still prefer bonds market.

BIBLIOGRAPHY

1. Options, Futures and Other Derivatives by John C Hull

2. Derivatives – The tools that changed Finance by Phelim.P.Boyle
3. DERIVATIVE WORK RIGHTS" by David M. Spatt. Artslaw.org.
4. www.nseindia.com
5. www.bseindia.com
6. www.derivativesportal.com
7. www.derivativeindia.com
8. www.optiontradingpedia.com

9. www.rbi.org