PJTN

1.
1 GENERAL SCENERIO OF INDUSTRY
1.1.1 STOCK EXCHANGE
The stock exchange or secondary market is a highly organized

market for the purchase and sale of second hand quoted of listed
securities. The securities contracts (Regulation) Act 1956 defines a stock
exchange as “an association, organization or not, established for the
purpose of assisting, regulating and controlling business in buying, selling
and dealing in securities”.
Of all the modern service institutions, stock exchange plays a crucial

agents and facilitators of entrepreneurial progress. After the industrial
revolution, as the size of the business enterprises grew, it was no longer
possible for individual person or even partnerships to raise such huge
amount for undertaking these ventures. Such huge requirements of
capital can be met only large number of individuals.
These investors could be expected to participate actively only if

investment is liquid or they could sell a part of their stake whenever they
wish to generate cash. This liquidity can be achieved through shares and
debentures representing smallest units of ownership and lending
represented by the public. The institution where these securities are
traded is known as stock exchange. This stock exchange is one of the
most important institutions in the capital market.
1.1.2 HISTORY OF THE INDIAN STOCK MARKET – THE ORIGIN :
One of the oldest stock markets in Asia, the Indian Stock Markets
have a 200 years old history.
18th East India Company was the dominant institution and by end of
the century, busuness in its loan securities gained full
Century
momentum.
1830's Business on corporate stocks and shares in Bank and Cotton

presses started in Bombay. Trading list by the end of 1839 got
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broader.
1840's Recognition from banks and merchants to about half a dozen

brokers.
1850's Rapid development of commercial enterprise saw brokerage

business attracting more people into the business.
1860's The number of brokers increased to 60.
1860-61 The American Civil War broke out which caused a stoppage of
cotton supply from United States of America; marking the
beginning of the "Share Mania" in India.
1862-63 The number of brokers increased to about 200 to 250.
1865 A disastrous slump began at the end of the American Civil War
(as an example, Bank of Bombay Share which had touched Rs.
2850 could only be sold at Rs. 87).
1.1.3 PRE-INDEPENDENCE SCENARIO- ESTABLISHMENT OF

DIFFERENT STOCK EXCHANGES :
1874 With the rapidly developing share trading business, brokers

used to gather at a street (now well known as "Dalal Street")
for the purpose of transacting business.
1875 "The Native Share and Stock Brokers' Association" (also known
as "The Bombay Stock Exchange") was established in Bombay.
1880's Development of cotton mills industry and set up of many

others.
1894 Establishment of "The Ahmedabad Share and Stock Brokers'

Association".
1880 - Sharp increase in share prices of jute industries in 1870's was

90's followed by a boom in tea stocks and coal.
1908 "The Calcutta Stock Exchange Association" was formed.
1920 Madras witnessed boom and business at "The Madras Stock
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Exchange" was transacted with 100 brokers.
1923 When recession followed, number of brokers came down to 3

and the Exchange was closed down.
1934 Establishment of the Lahore Stock Exchange.
1936 Merger of the Lahoe Stock Exchange with the Punjab Stock
Exchange.
1937 Re-organisation and set up of the Madras Stock Exchange

Limited (Pvt.) Limited led by improvement in stock market
activities in South India with establishment of new textile mills
and plantation companies.
1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock

Exchange Limited was established.
1944 Establishment of "The Hyderabad Stock Exchange Limited".
1947 "Delhi Stock and Share Brokers' Association Limited" and "The
Delhi Stocks and Shares Exchange Limited" were established
and later on merged into "The Delhi Stock Exchange
Association Limited"
1.1.4 POST – INDEPENDENCE SCENERIO :
Many more stock exchanges were established during 1980's,

namely:
• Cochin Stock Exchange (1980)

• Uttar Pradesh Stock Exchange Association Limited (at Kanpur,
1982)
• Pune Stock Exchange Limited (1982)
• Ludhiana Stock Exchange Association Limited (1983)
• Gauhati Stock Exchange Limited (1984)
• Kanara Stock Exchange Limited (at Mangalore, 1985)
• Magadh Stock Exchange Association (at Patna, 1986)
• Jaipur Stock Exchange Limited (1989)
• Bhubaneswar Stock Exchange Association Limited (1989)
• Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
• Vadodara Stock Exchange Limited (at Baroda, 1990)
• Coimbatore Stock Exchange
• Meerut Stock Exchange
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At present, there are twenty one recognized stock exchanges in
India which does not include the Over The Counter Exchange of India
Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
1.1.5 TRADING PATTERN OF THE INDIAN STOCK MARKET :
Indian Stock Exchanges allow trading of securities of only those

public limited companies that are listed on the Exchange(s). They are
divided into two categories:
1.1.6 NATIONAL STOCK EXCHANGE
In order to lift the Indian stock market trading system on par

with the international standards. On the basis of the recommendations of
high powered Pherwani Committee, the National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial
Credit and Investment Corporation of India, Industrial Finance Corporation
of India, all Insurance Corporations, selected commercial banks and
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others.
NSE provides exposure to investors in two types of markets, namely:
1. Wholesale debt market 2. Capital market
Trading at NSE
1. Fully automated screen-based trading mechanism.

2. Strictly follows the principle of an order-driven market.
3. Trading members are linked through a communication network.
4. This network allows them to execute trade from their offices.
5. The prices at which the buyer and seller are willing to transact will
appear on the screen.
6. When the prices match the transaction will be completed.
7. A confirmation slip will be printed at the office of the trading
member.
Advantages of trading at NSE
1. Integrated network for trading in stock market of India.

2. Fully automated screen based system that provides higher degree
of transparency.
3. Investors can transact from any part of the country at uniform
prices.
4. Greater functional efficiency supported by totally computerized
network.
INDIAN PHARMACEUTICAL INDUSTRY
The Indian Pharmaceutical Industry today is in the front rank of

India’s science-based industries with wide ranging capabilities in the
complex field of drug manufacture and technology. It ranks very high in
the third world, in terms of technology, quality and range of medicines
manufactured. From simple headache pills to sophisticated antibiotics and
complex cardiac compounds, almost every type of medicine is now made
indigenously.
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Playing a key role in promoting and sustaining development in the
vital field of medicines, Indian Pharma Industry boasts of quality producers
and many units approved by regulatory authorities in USA and UK.
International companies associated with this sector have stimulated,
assisted and spearheaded this dynamic development in the past 53 years
and helped to put India on the pharmaceutical map of the world.
INDIAN PHARMACEUTICAL SECTOR : CURRENT SCENERIO :
According to the Economic Survey (2006-07), the

pharmaceuticals industry had achieved a turnover of about US$ 12
billion in 2005-06, and is expected to grow by 13% in 2007. Its pharma
export value reached about US$ 4.7 billion during 2005-06.
Pharmaceutical industry accounts for about 2.91% of

total FDI into the country. The FDI in pharmaceutical sector is estimated
to have touched US$ 172 million, thereby showing a compounded annual
growth rate of about 62.6%. Drugs and pharmaceuticals sector is at 8th
rank in India's top 10 FDI attracting sectors. According to the Economic
Survey for the year 2006-07, the value of pharma output has increased
ten times over the last 15 years.
From Rs. 50 billion in 1990 it has grown to Rs.550

billion (US$ 12 billion) in 2005-06. Driven by growing number of
pharmaceutical units, increased knowledge skills, improved quality and
increasing national as well as international demand, India is now
recognized as a leading global pharma player.
INDIAN PHARMACEUTICAL SECTOR : FURURE PROSPECTS

The Indian pharmaceuticals market is expected to
reach US$ 55 billion in 2020 from US$ 12.6 billion in 2009. This was stated
in a report title "India Pharma 2020: Propelling access and acceptance,
realizing true potential" by McKinsey & Company. In the same report, it
was also mentioned that in an aggressive growth scenario, the pharma
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market has the further potential to reach US$ 70 billion by 2020
Due to increase in the population of high income

group, there is every likelihood that they will open a potential US$ 8 billion
market for multinational companies selling costly drugs by 2015. This was
estimated in a report by Ernst & Young. The domestic pharma market is
estimated to touch US$ 20 billion by 2015. The healthcare market in India
to reach US$ 31.59 billion by 2020. The sale of all types of pharmaceutical
drugs and medicines in the country stands at US$ 9.61 billion, which is
expected to reach around US$ 19.22 billion by 2012. Thus India would
really become a lucrative destination for clinical trials for global giants.
There was another report by RNCOS titled "Booming

Pharma Sector in India" in which it was projected that the pharmaceutical
formulations industry is expected to prosper in the same manner as the
pharmaceutical industry. The domestic formulations market will grow at
an annual rate of around 17% in 2010-11, owing to increasing middle class
population and rapid urbanization.
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1.2 COMPANY PROFILE
ABOUT ANGEL BROKING :
Angel Booking's tryst with excellence in customer relations began

more than 20 years ago. Angel Group has emerged as one of the top 3
retail broking houses in India and incorporated in 1987. Today, Angel has
emerged as a premium Indian stock-broking and wealth management
house, with an absolute focus on retail business and a commitment to
provide "Real Value for Money" to all its clients.
It has memberships on BSE, NSE and the leading commodity

exchanges in India NCDEX & MCX. Angel is also registered as a depository
participant with CDSL.
ANGEL GROUP COMPANIES :
Angel Broking Ltd. Member on the BSE and Depository

Participant with CDSL
Angel Capital and Debt Membership on the NSE Cash and Futures
Market Ltd. and Options Segment
Angel commodities Member on the NCDEX and MCX
Broking Ltd.
Angel securities Ltd. Member on the BSE
ANGEL PRESENCE :
• Nation- wide network of 21 regional hubs
• Presence 124 cities
• 6800 + sub brokers & business associates
• 5.9 lakh + clients
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MANAGEMENT TEAM :
NAME DESIGNATION AND DEPARTMENT
Mr. Dinesh Kumar Founder chairman and Managing Director
Mr. Lalit Thakkar Director - Research
Mr. Amit Majumdar Executive Director – Strategy and Finance
Mr. Rajiv Phadke Executive Director – HR and Corp.
Mr. Vinay Agarwal Executive Director – Equity Broking
Mr. Nikhil Daxini Executive Director – Sales and Broking
Mr. Hitungshu Executive Director – Distribution and Wealth

Debnath management
Mr. Mudit Executive Director - Operations

Kulshreshtha
MILESTONES :
• Awarded with 'Broking House with Largest Distribution Network' and
'Best Retail Broking House' at Dun & Bred street Equity Broking
Awards 2009
• August, 2008 Crossed 500000 trading accounts

• November, 2007 'Major Volume Driver' for 2007
• December, 2006 Created 2500 business associates
• October, 2006 'Major Volume Driver' award for 2006
• September, 2006 Launched Mutual Fund and IPO business
• July, 2006 Launched the PMS function
• October, 2005 'Major Volume Driver' award for 2005
• September, 2004 Launched Online Trading Platform
• April, 2004 Initiated Commodities Broking division
• April, 2003 First published research report
• November, 2002 Angel's first investor seminar
• March, 2002 Developed web-enabled back office software
• November, 1998 Angel Capital and Debt Market Ltd. Incorporated
• December, 1997 Angel Broking Ltd. Incorporated
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ANGEL’S LOGO :
▼ Pyramid formation symbolises Steady Growth
▼ Blocks of Triangles stand for Team Work
▼ Trtangle Structure showcases Our Network Strength
▼ The Structure Reflects Alphabet " A " for Angel
▼ Green Band indicates a Customer Supportive Unit
▼ Green signifies Wealth Creation
▼ Yellow signifies Continuous Growth & Radiance
▼ Yellow ♦ Green merge in Blue - Our Corporate Colour
▼ Blue signifies Prosperity
ANGEL’S ORGANIZATIONAL STRUCTURE :

CSO (Central
Support Office)
Regional Regional Regional

Office Office Office
Branches and Branches Branches

Franchise and and
Branches Franchise Franchise
Branches
Angel Business
Clients Associates
Angel
Clients
ANGEL’S VISION :
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“ To provide best values for money to investors through innovative
products, trading, investment strategies, state-of-the-art technology and
personalized service”.
PHILOSOPHY OF THE COMPANY :
“ Ethical practices and transparency in all our dealings customer

interest above our own always deliver what we promise effective cost
management.
PRODUCTS OF ANGEL BROKING :
1. Online Trading 8. Personal loans
2. Commodities 9. Quality assurance
3. DP Services
4. PMS (Portfolio Management Services)
5. Insurance
6. IPO Advisory
7. Mutual Fund
Online- Trading
Specially designed for the net savvy traders and investors who
prefer operating from their home or office through the internet. The
investor can access state of the art Technology with three different e-
broking products and voila trading on BSE, NSE, F & O, MCX and
NCDEX.
ANGEL DIET
• Application based product for Traders.
• Application based ideal for traders.
• Multiple exchanges on single screen
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• Online fund transfer facility
• User friendly & simple navigation
• BSC, NSC, F&O, MCX & NCDEX
ANGEL ANYWHERE
• Application based product for Traders with Charts.
• Application-based platform for day traders
• Intra-day/historical charts with various indicators
• BSC, NSC, Cash & Derivatives
ANGELTRADE
• Browser based product for Active Investors.
• Browser based for investor
• No installation required
• Advantage of mobility
• Trading as simple as internet surfing
• BSC, NSC, F&O, MCX & NCDEX
ANGEL INVESTOR
• User-friendly browser for investors
• Easy online trading platform
• Works in proxy and firewall system set up
• Integrated Back office: Access account information - anytime,
anywhere
• Streaming quotes
• Refresh static rates when required
• Multiple exchanges on single screen
Investment Advisory Services
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To derive optimum returns from equity as an asset class requires
professional guidance and advice. Professional assistance will always be
beneficial in wealth creation. Investment decisions without expert advice
would be like treating ailment without the help of a doctor.
• Expert Advice: Their expert investment advisors are based at various

branches across India to provide assistance in designing and monitoring
portfolios.
• Timely Entry & Exit: Their advisors will regularly monitor customers'
investments and guide customers to book timely profits. They will also
guide them in adopting switching techniques from one stock to another
during various market conditions.
• De-Risking Portfolio: A diversified portfolio of stocks is always better

than concentration in a single stock. Based on their research, They
diversify the portfolio in growth oriented sectors and stocks to minimize
the risk and optimize the returns.
Commodities
A commodity is a basic good representing a monetary value.

Commodities are most often used as inputs in the production of other
goods or services. With the advent of new online
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exchange, commodities can now be traded in futures markets. When they are traded on an
exchange, Commodities must also meet specified minimum standards known as basic grade.
Types of Commodities
: Gold and Silver • Precious Metals

: Copper, Zinc , Steel and Aluminum • Base Metals
: Crude Oil, Brent Crude and Natural • Energy
Gas • Pulses
: Chana , Urad and Tur • Spices
: Black Pepper, Jeera, Turmeric , Red • Others
Chili
Benefits at Angel
• Three different online products tailored for traders & investors.

• Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.
• Streaming Quotes and real time Rates. Intra-day trading calls.
• Research on 25 Agro Commodities, Precious and Base Metals, Energy products and
Polymers.
• An array of daily, weekly and special research reports.
• Highly skilled analysts with professional industry experience.
• Active relationship management desk.
• Seminars, workshops and investment camps for investors
Depositary Participant Services
Angel Broking Ltd. is a DP services provider though CDSL. We offer depository services to
create a seamless transaction platform to execute trades through Angel group of companies
and settle these transactions through Angel Depository services.
• Wide branch coverage
• Personalized/attentive services of trained a dedicated staff
• Centralized billing & accounting
• Acceptance & execution of instruction on fax
• Daily statement of transaction & holdings statement on e-mail
• No charges for extra transaction statement & holdings statement
Portfolio Management Services
Successful investing in Capital Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio Management Services (PMS) is one such
service that is fast gaining eminence as an investment avenue of choice for High Net worth
Investors (HNI). PMS is a sophisticated investment vehicle that offers a range of specialized
investment strategies to capitalize on opportunities in the market. The Portfolio Management
Service combined with competent fund management, dedicated research and technology,
ensures a rewarding experience for its clients.
Angel PMS brings with it years of experience, expertise, research and the backing of India's
leading stock broking house. At Angel, experienced portfolio management is the difference. It
will advise you on a suitable product based on factors such as your investment horizon, return
expectations and risk tolerance.
FUNDAMENTAL RESEARCH SERVICES:
The Sunday Weekly Report:

This weekly report is the ace of all reports. It offers a comprehensive market
overview and likely trends in the week ahead. It also presents few top picks based on an
in-depth analysis of technical and fundamental factors. It gives short term and long term
outlook on these scrip's, their price targets and trading strategies. Another unique
feature of this report is that it provides an updated view of about 70 prominent stocks
on an ongoing basis.
The Industry Watch :

This report provides an in-depth analysis of specific industries which are likely to
outperform others in the economy. It analyzes their strengths and weaknesses and
ascertains their future outlook. The final view is arrived at after thorough interaction
with industry experts. Also comparative performances of various companies in the
sector are evaluated and top picks are recommended.
Stock Analysis :
Angel's stock research has performed very well over the past few years and the
Angel Model Portfolio has consistently outperformed the benchmark indices. The
fundamentals of select scrip are thoroughly analyzed and an actionable advice is
provided along with investment rationale for each scrip.
Flash News :
Key developments and significant news announcements that are likely to have an
impact on markets / scrip are flashed live on trading terminals. Flash news keeps the
market participants updated on an online basis and helps them to reshuffle on their
holdings.
TECHNICAL RESEARCH SERVICE :
Nifty Tracker :
Nifty Futures is the most traded instrument with highest volumes in F & O and
excellent liquidity. The team tracks the Nifty Future and generates calls based on
unique trading system which is a result of their focused research over the past few
years. The objective is to generate positive returns for traders who are looking for a
high risk / high reward product.
Online Chart:
An online forum to help clients, specifically day traders in judging the directions of
the market and stocks which are in the limelight.
Intraday Calls :
For day traders, Angel provides intra-day calls with entry, exit and stop loss levels
during market hours. These calls are flashed on their terminals. Their analysts
continuously track the calls and provide recommendations according to the market
movements.
Position Calls :
Angel's "Position Trading Calls" are based on thorough analysis of the price
movement in select scrip's. These calls are for a 10-15 day time span with stop loss and
target levels. These calls are flashed on their terminals during market hours.
Derivative Strategies :
Their analysts take view on the Nifty and select stocks based on the derivatives
data and technical tools. Suitable "Derivative Strategies" are devised, which are flashed
on their terminals and published in their reports.
Futures Calls :
A customized product for HNIs to help them trade with leveraged position; wherein
clients are advised on the stocks with entry, exit and stop loss level for short term
benefits. Over and above this, financial status of the calls is monitored at all times.
1.3 THEORITICAL BACKGROUND
EQUITES – AN OVERVIEW:
An instrument that signifies an ownership position, or equity, in a corporation, and

represents a claim on its proportionate share in the corporation's assets and profits. A person
holding such an ownership in the company does not enjoy the highest claim on the company's
earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity
holder will only enjoy distributions from earnings after these higher priority claims are
satisfied.
EQUITY INVESTMENT:
Equity investment generally refers to the buying and holding of shares of stock
on a stock market by individuals and funds in anticipation of income from dividends and
capital gain as the value of the stock rises. It also sometimes refers to the acquisition of
equity (ownership) participation in a private (unlisted) company or a startup (a company being
created or newly created). When the investment is in infant companies, it is referred to as
venture capital investing and is generally understood to be higher risk than investment in
listed going-concern situations.
REASONS FOR THE PRICE MOVEMENT OF SHARES :
The market expects the earnings to rise rapidly in the future. For example a
gold mining company which has just begun to mine may not have made money yet but next
quarter it will most likely find the gold and make a lot of money. The same applies to
pharmaceutical companies often a large amount of their revenue comes from the best few
patented products, so when a promising new product is approved, investors may buy up the
stock.
The company was previously making a lot of money, but in the last year or
quarter it had a special one time expense (called a “charge”) which lowered the earnings
significantly. Stock holders understanding (possibly incorrectly) that this was a one time
issue, will still buy stock at the same price as before, and only sell at the least that same
price.
 Hype for the stock has caused people to buy the stock for a higher price
than they normally would. This is called bubble. One of the most important uses of the P/E
metric is to decide whether a stock is undergoing a bubble or anti-bubble by the comparing its
P/E to similar companies. Historically, bubbles have been followed by crashes. As such
prudent investors try to stay out of them
 The P/E ratio (price-to-earnings ratio) of a stock (also called its "earnings
multiple", or simply "multiple", "P/E", or "PE") is a measure of the price paid for a share
relative to the income or profit earned by the firm per share. A higher P/E ratio means that
investors are paying more for each unit of income. It is a valuation ratio included in other
financial ratios. The reciprocal of the P/E ratio is known as the earnings yield.
 The price per share (numerator) is the market price of a single share of
the
stock. The earnings per share (denominator) is the net income of the company for the most
recent 12 month period, divided by number of shares outstanding. The EPS used can also be
the "diluted EPS" or the "comprehensive EPS".
 For example, if stock A is trading at $24 and the Earnings Per Share for
the most recent 12 month period is $3, then the P/E ratio is 24/3=8. Stock A said to have a P/E
of 8 (or a multiple of 8). Put another way, the purchaser is paying $8 for every one dollar of
earnings.
 By relating price and earnings per share for a company, one can analyze
the market's valuation of a company's shares relative to the wealth the company is actually
creating.
 One reason to calculate P/Es is for investors to compare the
value
stocks. If one stock has a P/E twice that of another stock, all things being equal, it is a less
attractive investment. Companies are rarely equal, however, and comparisons
between industries, countries, and time periods may be misleading.
 The company has some sort of business advantage which seems to ensure
thait
will continue make money for a long time with very little risk. Thus investors are willing to buy
the stock even at a higher price for the piece of mind that they all not loose their money.
1.4 PROBLEM IDENTIFICATION
Problem identification is used to solve the problems arising in the

company. For the past six months the Capital market is in the downtrend due
to the global Economic crisis. So investors hesitate to invest in the capital
market. Since the Pharmaceutical industry is defensive industry, it makes the
investors to get better return in despite of any market condition. But most of
the investors are not aware of those pharmaceutical companies since the
investors are having good inspiration with IT sectors.
According to the new research report of “Booming Pharma Sector in

India”, It is clearly stated that the Indian pharmaceutical industry is projected
to show double-digit growth in near future owing to rise in pharmaceutical
outsourcing and consolidation of highly fragmented industry. Investments in
R and D is expected to grow at blistering pace in coming years.
So, in order to spread awareness about the pharmaceutical companies

the researcher has to determine the equity share price moving trend of
pharmaceutical companies and the risk and return level associated with it.
This suggestion will helps the investors to invest in the better

pharmaceutical company securities and yield better return.
1.5 NEED FOR THE STUDY
The need for the study is to analyze the impact of equity share price
movements of Pharmaceutical industry of National Stock Exchange, which is
also funneled down to the NIFTY stocks.
There is always an expectation of the stock holders to get an optimum

return but generally peoples don’t have much knowledge about the
fundamentals of pharma sector. So in this project there is a need to identify
the reasons and benefits of investing in pharma sector and both fundamental
and technical information about the pharmaceutical sectors.
There is a need to analyze whether the indices have any impact on

selected equity share price of Pharmaceutical companies.
1.5 OBJECTIVES OF THE STUDY
 To determine the share price moving trend of selected pharmaceutical

companies.
 To find out the relationship between selected pharmaceutical

companies share price movement with NIFTY index.
 To find out the risk level associated with the selected pharmaceutical
companies.
 To offer suggestions to the investors.

1.6 SCOPE OF THE STUDY
For the last 1year the global melt down in the equity market most of
the equity shares has been corrupted more than half of the 50 percentage of
the year value.
The study focused on the equity share price movements of selected

Pharmaceutical companies, will determine the equity share price moving
trend of the top 5 pharmaceutical companies and the relationship with those
pharmaceutical companies and NIFTY index and the risk and return level of
those pharmaceutical companies and based on the study suggestions will be
given to the investors to invest in the company’s securities.
This will also be helpful for the investors to know about the current
situation of the equity market and the importance of the pharmaceutical
companies.
1.9 CHAPTERIZATION
Chapter I
This chapter presents the introduction about the general scenario of
the stock exchange, company profile, theoretical background, problem
identification, needs, objectives and scope of the study.
Chapter II
This chapter deals with the details of literature reviewed for the study
which contains the articles and journals related to the equity share price
moving trend and the Indian pharmaceutical industry.
Chapter III
This chapter gives the details of the research methodology adopted for
the study which contain s research type, research design, sample size,
Limitations and tools used for analyzing the date.
Chapter IV
This chapter reveals in detail about the data analysis and
interpretation using technical tools such as Relative Strength Index and Beta
and statistical tools like Correlation.
Chapter V
This chapter gives the detailed conclusion about the thesis, summary
of findings, suggestions and recommendations.
2.1 REVIEW OF LITERATURE

What is Literature Review:
A literature review is a summary of previous research on a topic.
Literature review can be either a part of a larger report f a research project,
a thesis or a bibliographic essay that is published separately in a scholarly
journal. Some questions to think about as you develop your literature review.
o What is known about the subject?

o Are there any gaps in the knowledge of the subject?
o Have areas of further study been identified by other researches
that you may want to consider?
o Who are the significant personality researches in this area?
o Is there consensus about the topic?
o What aspects have generated significant debate on the topic?
o What methods on problems were identified by others studying in
the field and how might they impact your research?
What is the purpose of a Literature Review:
The purpose of a Literature Review is to convey to the reader what
knowledge and ideas have been established on a topic and what are the
strengths and weakness. The Literature Review allows the reader too be
brought up to date regarding the state of research in the field and
familiarizes the reader with any contrasting perspectives and viewpoints on
the topic. There are good reasons for beginning a literature review starting a
research paper. These reasons include:
o To see what has and has not been investigated.
o To develop general explanation for observed variations in a
behavior or phenomena.
o To identify potential relationships between concepts and to
identify researchable hypothesis.
o To learn how others have defined and measured key concepts.
THE INDIAN PHARMACEUTICAL INDUSTRY – FUNDAMENTALS VIS – A-

VIS MARKET PERCEPTION
By “Tamal Datta Chaudhuri “ Industrial Investment Bank of

India, Ltd. - IBS Kolkata and “Paritosh Kumar” ICFAI Business
School. February 27, 2009.
When the Indian economy shifted from a process patent regime to a product
patent regime in 2005, there was a thought as to whether Indian pharma
companies would be able to weather the change in the regime. However,
they have indeed succeeded in this transition and have grown in size. The
world pharma majors' confidence in Indian manufacturers has increased and
the growth of the domestic pharmaceutical industry has outperformed the
growth of the global pharmaceutical industry. The purpose of this paper is to
explore the change in market perception about Indian pharma companies in
the background of their fundamental performance and their growth
prospects. We focus on the PE multiples of Indian pharma companies and
their determinants. The study is relevant in today's market context where
there are signs of a global slowdown and which has affected stock markets
across the world, including the Indian stock market.
THE PHARMACEUTICAL INDUSTRY IN THE GLOBAL ECONOMY
By Larry Davidson* and Gennadiy Greblov, Indiana University

Kelley School of Business Bloomington, Indiana.
This paper summarizes the results of our global pharmaceutical industry
analysis and is intended to increase awareness of the general public –
investors, policy makers, managers, employees of the companies – about its
current developments. The paper has the following major goals:
1) To analyze the current situation, major challenges and the prospects
of the pharmaceutical industry;
2) To identify major players of the global pharmaceutical industry and
make a comparative analysis of their business practices and financial
results;
3) To determine the relative position of the U.S. pharmaceutical
companies in the global pharmaceutical industry, as well as to reveal
opportunities for further strengthening of their positions.
The paper consists of three major parts. In the first part we present an
overview of the pharmaceutical industry as a whole – its major players,
current trends and challenges. The second part focuses on a more detailed
analysis of major pharmaceutical companies. These major companies are
divided into two major groups: a) companies with headquarters in the U.S.,
b) foreign pharmaceutical companies with headquarters outside of the U.S.
Pharmaceutical companies are compared with other companies in the same
group; and major trends within each group are analyzed. Part 3 sums up our
findings.
WHAT DRIVES PRICE MOVEMENT? FACTORS OTHER THAN

FUNDAMENTALS
By “Zhangkai Huang, Xiaoyuan Mao, Longkai Zhao”, Guanghua

School of Management, Peking University,Beijing, China.
What Drives Price Movement? A perfect capital market predicts
changes in stock price when the equilibrium valuation of the stock changes.
We try to find out factors other than this. We focus on a well-established
event: the negative price reaction to the seasoned equity offerings. While
this can be explained by asymmetric information, a downward-sloping
demand curve for stocks is also consistent with it. We argue that we can
disentangle the two factors using a natural experiment in China’s stock
market, where companies’ equity offering plans need to be approved by the
regulator. We find strong negative price reactions to the announcement of
such approval. Since all information on the overvaluation of the firm is
released when the company announces its equity offering plan, the negative
reaction to the approval of the plan cannot be explained by changes in the
valuation of the firm. Furthermore, we find that the negative price reaction to
the announcement of the approval is absent in the B-share market if the
company only issues shares in the A-share market. The evidence suggests
that a supply shock to a downward-sloping demand curve drives the price
movement.
HOW VOLATILE RE THE STOCKS OF THE PHARMACEUTICAL

COMPANIES OF BANGLADESH? SOME EVIDENCES FROM THE MARKET
MODEL
By “Sayema H. Bididsha, Deen Taposh Lamarnic & J Ltd. A.
Ahsanuzzaman Virginia Polytechnic Institute and State University,
Bank Parikrama, Vol. XXX, No. 2, June 2005.
The paper attempts to estimate the beta coefficient for the key
pharmaceutical companies of Bangladesh. Such an analysis provides an
understanding of the volatility of the stocks of those companies in relation to
the movement of the overall market. In our analysis, among 23 companies,
stocks of 16 companies are found to possess significant relationship with the
market movement. Most of the companies appear to move in relation to the
market as a whole with some of the companies exhibiting slightly aggressive
movement. In addition, the estimation result establishes existence of
seasonality in case of most of the companies and with seasonality the stocks
tend to show higher degree of volatility in relation to overall market.
INVESTING IN ASIA’S EMERGING EQUITY MARKETS

By “Lilia Clemente” Chariman and Chief Executive officer of
Clemente Capital, Inc., , The Columbia Journal of world Business,
Volume 29, Issue 2, Summer 1994, Pages 92 – 111. Available online
13 June 2002.
Asian equity markets have been hot for some time and they show no
dramatic signs of cooling. The economies of the region have moved towards
greater economic and financial integration while opening their capital
markets to foreigners. Attracted by strong economies, credible reforms and
further intentions of liberalization, global investors have made significant
investments. However, the stability promised by a financially strong Japan is
diminishing, and the region as a whole faces a variety of political and
financial challenges.
EMERGING EQUITY MARKET VOLATILITY

By “Geert Bekaert , Campbell R. Harvey” Journal of Financial
Economics, Volume 43, Issue 1, January 1997, Pages 29-77.
Understanding volatility in emerging capital markets is important for

determining the cost of capital and for evaluating direct investment and
asset allocation decisions. We provide an approach that allows the relative
importance of world and local information to change through time in both the
expected returns and conditional variance processes. Our time-series and
cross-sectional models analyze the reasons that volatility is different across
emerging markets, particularly with respect to the timing of capital market
reforms. We find that capital market liberalizations often increase the
correlation between local market returns and the world market but do not
drive up local market volatility.
RESEARCH
Research is a process in which the researcher wishes to find out the
end result for a given problem and thus the solution helps in future course of
action. The research has been defined as “A careful investigation or enquiry
especially through search for new facts in any branch of knowledge.
RESEARCH METHODOLOGY
The procedure using, which researchers go about their work of
describing, explaining and predicting phenomena, is called Methodology.
Methods compromise the procedures used for generating, collecting and
evaluating data. Methods are the ways of obtaining information useful for
assessing explanations.
3.1 RESEARCH DESIGN:

A research design is the arrangement of condition for collection and
analysis of data in a manner, which may result in an economy in procedure.
It stands for advance planning for collection of the relevant data and the
techniques to be used in analysis, keeping in view the objectives of the
research and availability of time. The research used here for the study is
exploratory research. Exploratory research is quite informal, it relays on the
secondary data .The result are usually used for making decision by
themselves.
3.2 SOURCES OF DATA:
The two sources of data collection are namely Primary & Secondary.
Primary Data
Primary data are collected afresh and for the first time. It is the data
originated by the researcher specifically to address the research problem.
Secondary Data
Secondary data are collected from the past records & books and
various journals, magazines etc.
In this study, secondary data were collected through the
www.nseindia.com website and the websites of pharmaceutical
companies like CIPLA, RANBAXY, DR REDDY, GLAXOSMITHKLINE and
SUNPHARMA. In addition to this data’s were collected through various
magazines and journals.
SAMPLING TECHNIQUES
The samples are chosen from the NSE India website, which actively traded
companies in the past six months. For this study, the researchers have
taken top 5 Pharmaceutical companies for the period of 1.10.2010 to
31.3.2011.
3.3 POPULATION:
All the companies of pharmaceutical industry in the equity market
listed in National Stock Exchange constitute population as far as my study is
concern.
3.4 SAMPLE SIZE:
Out of listed companies in NSE, the following five pharmaceutical
companies were selected as a sample size based on highly traded volume in
Angel broking, Puducherry.
1. CIPLA
2. RANBAXY
3. Dr. REDDY
4. GLAXOSMITHKLINE
5. SUN PHARMA
3.5 LIMITATIONS:
 This study is confined to six months from 1.10.2010 to 31.3.2011 only.

Therefore the changes taking place before and after these periods
have not taken into consideration.
 This study is compared with S&P CNX NIFTY indices only.
 Only sample of 5 Pharmaceutical companies are taken for

consideration.
3.6 TOOLS FOR ANALYSIS:

• Technical Tools :
 Relative Strength Index (RSI)
 Beta
• Statistical Tools :
 Correlation
CORRELATION:
Correlation analysis helps to determine the strength of the linear
relationship between the two variables X and Y, in other words, as to how
strongly are these two variables correlated. Karl Pearson, in 1896,
developed an Index or Coefficient of this association in cases where the
relationship is a linear one, i.e. where the trend of the relationship can be
described by a straight line.
The Pearson’s coefficient of correlation is designated by r. The
coefficient of correlation r can be designed as a measure of strength of the
linear relationship between the two variables X and Y. The sign of the
coefficient can be positive or negative. It is positive when the slope of the
line is positive and it is negative when the slope of the line is negative.
The Coefficient of Correlation (r) :
n( ∑XY ) −( ∑X ) ( ∑Y )
r =
n ∑X 2 −( ∑X ) 2 n ∑Y 2 −( ∑Y ) 2
BETA
The degree to which different portfolios are affected by these
systematic risks as compared to the effect on the market as a whole, is
different and is measured by Beta. To put it differently, the systematic risks
of various securities differ due to their relationships with the market. The
Beta factor describes the movement in a stock's or a portfolio's returns in
relation to that of the market returns. For all practical purposes, the market
returns are measured by the returns on the index (Nifty, Mid-cap etc.), since
the index is a good reflector of the market.
Computation of BETA:
BETA = (N * ∑XY) – (∑X * ∑Y) / (N * (∑X2) – (∑ X)2)
STOCK RETURN (Y) = (Closing –Opening)/ (Opening) *100
MARKET RETURN (X) = (Closing –Opening)/ (Opening) *100
RELATIVE STRENGTH INDEX (RSI)

The Relative Strength Index (RSI) is a technical indicator used in the
technical analysis of financial markets. It is intended to chart the current and
historical strength or weakness of a stock or market based on the closing
prices of a recent trading period. The indicator should not be confused with
relative strength.
The Relative Strength Index was developed by J. Welles Wilder and
published in a 1978 book, New Concepts in Technical Trading Systems, and
in Commodities magazine (now Futures magazine) in the June 1978 issue.
Computation of RSI :
RSI = 100 – (100 / (1+ RS)
RS = Average gain per day / Average loss per day)

4.1 ANALYSING THE RELATIONSHIP BETWEEN THE CIPLA with NIFTY
index ( Using Correlation) :
INDEX PRICE MARKE STOCK PRICE STOCK

T RETUR
RETURN N
Date Open Close X Open Close Y X*Y X2 Y2
Price Price Price Price
1-Oct-10 6030. 6143. 1.87552 323.9 323.8 - - 3.5176 0.00095
3 4 9 0.03087 0.0579 07 3
4-Oct-10 6144. 6159. 0.24004 325 328.0 0.93846 0.2252 0.0576 0.88071
7 45 4 5 2 72 21
5-Oct-10 6159. 6145. -0.22161 329 329.3 0.10638 - 0.0491 0.01131
45 8 5 3 0.0235 11 7
8
6-Oct-10 6150. 6186. 0.57714 333 326.9 - - 0.3330 3.35560
95 45 7 1.83183 1.0572 98 8
4
7-Oct-10 6186. 6120. -1.07567 327 331.1 1.26911 - 1.1570 1.61064
85 3 5 3 1.3651 63 8
5
8-Oct-10 6121. 6103. -0.29323 332.2 337.2 1.50511 - 0.0859 2.26537
4 45 7 0.4413 86 8
5
11-Oct- 6105. 6135. 0.48968 334 339.4 1.63173 0.7990 0.2397 2.66256
10 95 85 6 5 7 39 93 4
12-Oct- 6135. 6090. -0.7342 339.9 339.8 - 0.0108 0.5390 0.00021
10 95 9 5 0.01471 46 6
13-Oct- 6091. 6233. 2.33852 340.5 339.7 - - 5.4686 0.05520
10 45 9 4 0.23495 0.5494 93 1
3
14-Oct- 6234. 6177. -0.91349 340 334.4 - 1.5045 0.8344 2.71280
10 3 35 1.64706 8 73 3
15-Oct- 6175. 6062. -1.83374 335.4 331.7 - 2.0229 3.3626 1.21696
10 9 65 1.10316 1 05 3
18-Oct- 6112. 6075. -0.60202 326.1 326 - 0.0276 0.3624 0.00211
10 75 95 5 0.04599 88 29 5
19-Oct- 6114. 6027. -1.42531 326.5 331.9 1.66921 - 2.0315 2.78629
10 45 3 5 9 2.3791 15 2
6
20-Oct- 6002. 5982. -0.34733 332 333 0.30120 - 0.1206 0.09072
10 95 1 5 0.1046 38 4
2
21-Oct- 6008. 6101. 1.54104 335.1 345.2 3.02894 4.6677 2.3748 9.17451
10 9 5 7 5 7 5 27 7
22-Oct- 6113. 6066. -0.77453 348.7 344.3 - 0.9662 0.5998 1.55623
10 4 05 5 1.24749 17 94 3
25-Oct- 6101. 6105. 0.07457 345.2 352.8 2.20162 0.1641 0.0055 4.84714
10 25 8 5 2 86 61 1
26-Oct- 6116. 6082 -0.5608 355 355.4 0.12676 - 0.3144 0.01606
10 3 5 1 0.0710 93 8
9
27-Oct- 6075. 6012. -1.03367 358.4 350.5 - 2.2640 1.0684 4.79737
10 45 65 5 2.19029 33 7 1
28-Oct- 6039. 5987. -0.86507 353 350.1 - 0.6984 0.7483 0.65183
10 95 7 5 0.80737 3 52 9
29-Oct- 6021. 6017. -0.0573 353 352.9 - 0.0008 0.0032 0.00020
10 15 7 5 0.01416 12 83 1
1-Nov- 6092. 6117. 0.41445 355 356.6 0.45070 0.1867 0.1717 0.20313
10 3 55 8 4 98 75 4
2-Nov- 6127. 6119 -0.13953 358 350.7 - 0.2825 0.0194 4.10119
10 55 5 2.02514 75 7 1
3-Nov- 6150. 6160. 0.16096 353.8 347.2 - - 0.0259 3.42741
10 6 5 5 1.85133 0.2979 08 7
9
4-Nov- 6209. 6281. 1.16271 351.8 349.9 - - 1.3519 0.27653
10 6 8 6 5 0.52587 0.6114 08 6
3
5-Nov- 6321. 6312. -0.14869 352.4 352.9 0.15607 - 0.0221 0.02435
10 85 45 5 3 0.0232 09 9
1
8-Nov- 6335. 6273. -0.97944 351 348.9 - 0.5859 0.9593 0.35795
10 25 2 0.59829 9 04 2
9-Nov- 6281 6301. 0.32717 350.2 349.9 - - 0.1070 0.00509
10 55 7 5 0.07139 0.0233 45 6
6
10-Nov- 6303. 6275. -0.43629 349.1 342.7 - 0.7998 0.1903 3.36093
10 2 7 1.83329 37 46 6
11-Nov- 6286. 6194. -1.46508 345.2 331.8 - 5.6863 2.1464 15.0640
10 35 25 5 5 3.88125 32 57 7
12-Nov- 6182. 6071. -1.78979 329 329.6 0.19756 - 3.2033 0.03903
10 3 65 5 8 0.3536 37 3
1
15-Nov- 6079. 6121. 0.68586 332.4 343.8 3.44464 2.3625 0.4704 11.8655
10 9 6 7 5 5 67 13 8
16-Nov- 6143. 5988. -2.51894 343.1 339.2 - 2.8265 6.3450 1.25915
10 45 7 5 1.12212 61 74 7
18-Nov- 6075. 5998. -1.26976 341.4 353.9 3.66085 - 1.6122 13.4018
10 95 8 5 5 8 4.6484 91 8
1
19-Nov- 6011. 5890. -2.01288 355 342.8 - 6.9174 4.0516 11.8103
10 3 3 3.43662 88 69 6
22-Nov- 5920. 6010 1.50483 345.9 348.1 0.62147 0.9352 2.2645 0.38623
10 9 9 5 7 23 4 4
23-Nov- 5971. 5934. -0.61626 345 346.1 0.33333 - 0.3797 0.11111
10 55 75 5 3 0.2054 71 1
2
24-Nov- 5946. 5865. -1.36292 345 340.7 - 1.6987 1.8575 1.55345
10 8 75 1.24638 09 45 5
25-Nov- 5883. 5799. -1.43101 339.5 333.9 - 2.3604 2.0477 2.72079
10 95 75 1.64948 31 94 9
26-Nov- 5828. 5751. -1.31422 336.9 340.1 0.94983 - 1.7271 0.90219
10 55 95 7 1.2482 76
9
29-Nov- 5789. 5830 0.69171 338.7 338.1 - - 0.4784 0.03681
10 95 6 5 0.19188 0.1327 71 9
3
30-Nov- 5811. 5862. 0.87927 337.8 343.3 1.62818 1.4316 0.7731 2.65097
10 6 7 6 2 22 26 8
1-Dec- 5871 5960. 1.53125 344.5 365.1 5.99419 9.1786 2.3447 35.9303
10 9 5 5 4 42 43 7
2-Dec- 6023. 6011. -0.18844 369.5 364.9 - 0.2320 0.0355 1.51633
10 05 7 5 1.23139 47 11 1
3-Dec- 6013. 5992. -0.34174 365.9 370.2 1.18884 - 0.1167 1.41336
10 35 8 5 9 0.4062 86 3
8
6-Dec- 6033. 5992. -0.68615 375 370 - 0.9148 0.4708 1.77777
10 65 25 1.33333 69 04 8
7-Dec- 5995. 5976. -0.30859 371 371.3 0.09434 - 0.0952 0.0089
10 05 55 5 0.0291 27
1
8-Dec- 5954. 5903. -0.85147 370.9 368.6 - 0.5279 0.7250 0.38443
10 4 7 5 5 0.62003 37 03 7
9-Dec- 5924. 5766. -2.66278 368.9 349.9 -5.1633 13.748 7.0904 26.6596
10 25 5 5 76 2 8
10-Dec- 5761 5857. 1.67245 350.5 347.4 - - 2.7970 0.75722
10 35 3 5 0.87019 1.4553 98 3
4
13-Dec- 5882. 5907. 0.42497 348 355.4 2.12643 0.9036 0.1806 4.52173
10 65 65 9 7 9 07 3
14-Dec- 5928. 5944. 0.25975 358 359 0.27933 0.0725 0.0674 0.07802
10 7 1 3 57 72 5
15-Dec- 5931. 5892. -0.65502 357.5 354.5 - 0.5496 0.4290 0.70419
10 15 3 0.83916 64 46 1
16-Dec- 5910. 5948. 0.64630 355 356.7 0.47887 0.3094 0.4177 0.22932
10 55 75 2 3 97 06
20-Dec- 5926. 5947. 0.34082 357.6 365.7 2.27908 0.7767 0.1161 5.19421
10 85 05 2 5 3 61 6 8
21-Dec- 5960. 6000. 0.67529 368.8 366.6 - - 0.4560 0.35584
10 4 65 0.59653 0.4028 17 7
3
22-Dec- 6019 5984. -0.57485 368 361.8 - 0.9684 0.3304 2.83849
10 4 1.68478 91 48 2
23-Dec- 6005. 5980 -0.43124 361.0 359.7 - 0.1612 0.1859 0.13980
10 9 5 0.37391 46 7 8
24-Dec- 5940. 6011. 1.20112 359 363.7 1.30919 1.5725 1.4427 1.71398
10 25 6 8 2 07 08 4
27-Dec- 6013. 5998. -0.25277 364 370.1 1.67582 - 0.0638 2.80838
10 3 1 4 0.4236 94 7
28-Dec- 6005. 5996 -0.15569 372 371.1 - 0.0355 0.0242 0.05221
10 35 5 0.22849 75 41
29-Dec- 6005. 6060. 0.91921 368.5 366.6 - - 0.8449 0.26577
10 15 35 1 5 5 0.51553 0.4738 49 5
8
30-Dec- 6062. 6101. 0.65156 367.4 369.0 0.44910 0.2926 0.4245 0.20169
10 35 85 3 5 2 18 34 2
31-Dec- 6105. 6134. 0.48156 370.0 369.8 - - 0.2319 0.00456
10 1 5 5 5 0.06756 0.0325 04 4
3
3-Jan-11 6177. 6157. -0.32133 370.9 372.5 0.43138 - 0.1032 0.18609
45 6 3 0.1386 53 1
2
4-Jan-11 6172. 6146. -0.42769 375 379.2 1.13333 - 0.1829 1.28444
75 35 5 3 0.4847 15 4
1
5-Jan-11 6141. 6079. -1.00222 378.8 376.3 - 0.6482 1.0044 0.41832
35 8 5 0.64678 17 5 3
6-Jan-11 6107 6048. -0.96201 377.2 363.6 - 3.4808 0.9254 13.0920
25 5 3.61829 34 65 2
7-Jan-11 6030. 5904. -2.09421 363.5 357 - 3.7731 4.3857 3.24604
9 6 5 1.80168 01 36 3
10-Jan- 5901. 5762. -2.34609 357.0 348.1 - 5.8808 5.5041 6.28330
11 3 85 5 2.50665 39 53 3
11-Jan- 5767. 5754. -0.24012 350.0 346.6 - 0.2332 0.0576 0.94340
11 95 1 5 5 0.97129 26 58 4
12-Jan- 5800. 5863. 1.08964 350 346.8 - - 1.1873 0.83591
11 05 25 6 0.91429 0.9962 28 8
5
13-Jan- 5850. 5751. -1.68953 348.5 344.5 - 1.9391 2.8545 1.31739
11 75 9 1.14778 99 01
14-Jan- 5752. 5654. -1.6959 344.5 339.5 - 2.4613 2.8760 2.1065
11 1 55 1.45138 97 85
17-Jan- 5648. 5654. 0.10533 341 346.8 1.70088 0.1791 0.0110 2.89299
11 8 75 2 57 95 2
18-Jan- 5682. 5724. 0.73030 347.5 354.6 2.02848 1.4814 0.5333 4.11475
11 55 05 6 5 5 15 47 2
19-Jan- 5737. 5691. -0.80699 355.7 351.5 -1.1806 0.9527 0.6512 1.39382
11 35 05 5 5 39 37 7
20-Jan- 5656 5711. 0.98302 347.2 351.3 1.19527 1.1749 0.9663 1.42868
11 6 7 5 6 89 42 6
21-Jan- 5692. 5696. 0.07817 347.1 354 1.97321 0.1542 0.0061 3.89355
11 05 5 9 5 64 12 9
24-Jan- 5717. 5743. 0.4574 353.0 348.5 - - 0.2092 1.66092
11 1 25 5 1.28877 0.5894 15 6
8
25-Jan- 5763. 5687. -1.31695 349.9 343.1 - 2.5405 1.7343 3.72151
11 3 4 5 1.92912 65 67 4
27-Jan- 5725. 5604. -2.11343 348.8 333.4 -4.4008 9.3007 4.4665 19.3670
11 3 3 5 73 71 6
28-Jan- 5614 5512. -1.81421 340.1 335.1 - 2.6671 3.2913 2.16135
11 15 1.47016 78 74 8
31-Jan- 5452. 5505. 0.97844 334 332.1 - - 0.9573 0.30679
11 55 9 1 5 0.55389 0.5419 47 7
5
1-Feb-11 5537. 5417. -2.16893 332.5 329 - 2.2830 4.7042 1.10803
3 2 1.05263 81 45 3
2-Feb-11 5469. 5432 -0.68653 332.5 325.5 - 1.4554 0.4713 4.49432
55 5 2.11998 27 21 4
3-Feb-11 5430. 5526. 1.77333 324.4 329.4 1.54130 2.7332 3.1447 2.37562
45 75 4 7 52 12 7
4-Feb-11 5519. 5395. -2.24913 329.4 324.3 - 3.4822 5.0586 2.39713
9 75 1.54827 67 08 9
7-Feb-11 5430. 5396 -0.6289 313.1 314.5 0.46311 - 0.3955 0.21447
15 5 1 0.2912 1 2
5
8-Feb-11 5432. 5312. -2.20531 318.8 316.8 - 1.3835 4.8633 0.39357
35 55 0.62735 05 79 1
9-Feb-11 5293. 5253. -0.74626 317.5 311.6 - 1.3867 0.5569 3.45315
05 55 1.85827 54 06 9
10-Feb- 5246. 5225. -0.386 312 310.7 - 0.1608 0.149 0.17361
11 05 8 0.41667 35 1
11-Feb- 5219. 5310 1.73095 312 311.1 - - 2.9962 0.07422
11 65 9 5 0.27244 0.4715 19 1
8
14-Feb- 5340. 5456 2.16750 313 313 0 0 4.6980 0
11 25 2 63
15-Feb- 5467. 5481 0.24233 315 309.8 - - 0.0587 2.67296
11 75 5 1.63492 0.3961 24 5
9
16-Feb- 5467. 5481. 0.25788 311.9 305.8 - - 0.0665 3.82497
11 6 7 3 1.95576 0.5043 04 8
6
17-Feb- 5501. 5546. 0.81338 306 305.2 - - 0.6615 0.06835
11 7 45 5 0.26144 0.2126 95
5
18-Feb- 5557. 5458. -1.77416 306 307.2 0.40849 - 3.1476 0.16687
11 55 95 5 7 0.7247 55
4
21-Feb- 5456. 5518. 1.13623 308 306.2 - - 1.2910 0.34154
11 6 6 9 0.58442 0.6640 38 2
4
22-Feb- 5504. 5469. -0.63949 305.1 305.2 0.03277 - 0.4089 0.00107
11 4 2 6 0.0209 45 4
6
23-Feb- 5452. 5437. -0.27694 305 303.1 - 0.1679 0.0766 0.36791
11 45 35 5 0.60656 8 96 2
24-Feb- 5408. 5262. -2.70025 300 298.7 - 1.1701 7.2913 0.18777
11 75 7 0.43333 1 73 8
25-Feb- 5321. 5303. -0.32888 301.9 301.6 - 0.0272 0.1081 0.00685
11 05 55 5 0.08281 34 64 7
28-Feb- 5330. 5333. 0.05816 302 299.6 - - 0.0033 0.60551
11 15 25 5 0.77815 0.0452 83 1
6
1-Mar-11 5382 5522. 2.60683 300 305.9 1.96666 5.1267 6.7956 3.86777
3 8 7 81 02 8
3-Mar-11 5478. 5536. 1.05413 306.2 305.8 - - 1.1111 0.02159
45 2 5 0.14694 0.1548 91 1
9
4-Mar-11 5586. 5538. -0.84941 310.4 304.1 - 1.7237 0.7215 4.11810
2 75 5 5 2.02931 28 05 8
7-Mar-11 5490. 5463. -0.48998 304 305.3 0.42763 - 0.2400 0.18286
05 15 2 0.2095 78 9
3
8-Mar-11 5466. 5520. 1.00071 309.4 307.4 - - 1.0014 0.41784
1 8 3 0.64641 0.6468 27 9
7
9-Mar-11 5542. 5531 -0.20569 308 301.5 - 0.4340 0.0423 4.45374
4 2.11039 8 07 4
10-Mar- 5516. 5494. -0.39339 303 299.9 -1.0231 0.4024 0.1547 1.04673
11 1 4 82 59 8
11-Mar- 5456. 5445. -0.19611 298.7 295.2 - 0.2297 0.0384 1.37252
11 15 45 5 5 1.17155 51 59 5
14-Mar- 5436. 5531. 1.74744 295 300.1 1.72881 3.0210 3.0535 2.98879
11 5 5 8 4 11 74 6
15-Mar- 5420 5449. 0.54704 296.5 297.6 0.37093 0.2029 0.2992 0.13759
11 65 8 5 5 2 18 61 1
16-Mar- 5475. 5511. 0.64281 298.5 296 - - 0.4132 0.70144
11 95 15 1 0.83752 0.5383 06 1
7
17-Mar- 5455. 5446. -0.16039 295 298.1 1.06779 - 0.0257 1.14019
11 4 65 5 7 0.1712 25
7
18-Mar- 5475. 5373. -1.8565 301.5 293.0 - 5.2031 3.4466 7.85486
11 35 7 5 2.80265 33 01 6
21-Mar- 5408. 5364. -0.8135 294.1 287.7 - 1.7564 0.6617 4.66184
11 75 75 5 2.15913 45 77
22-Mar- 5390. 5413. 0.42664 288.3 291.6 1.14464 0.4883 0.1820 1.31020
11 85 85 9 1 6 29 3
23-Mar- 5411. 5480. 1.27231 293 303.9 3.73720 4.7548 1.6187 13.9666
11 4 25 4 5 1 94 83 7
24-Mar- 5501. 5522. 0.37442 304.8 305.9 0.36083 0.1351 0.1401 0.13020
11 8 4 3 5 5 3 04 93 1
25-Mar- 5588. 5654. 1.17380 306.5 307.6 0.35889 0.4212 1.3778 0.12880
11 65 25 8 1 69 24 3
28-Mar- 5645. 5687. 0.74398 308.5 308.1 - - 0.5535 0.01681
11 25 25 8 0.12966 0.0964 19 2
7
29-Mar- 5686. 5736. 0.87663 308.1 314 1.91496 1.6787 0.7684 3.66708
11 5 35 8 3 28 94 2
30-Mar- 5755. 5787. 0.55335 313.6 327.8 4.54400 2.5144 0.3062 20.6479
11 8 65 5 5 5 47 02 8
31-Mar- 5803. 5833. 0.52903 329 321.6 - - 0.2798 4.99094
11 05 75 2 5 2.23404 1.1818 75 6
8
∑= - - 154.7 167.7 372.19
21.9988 24.727 595 446 79
9
CORRELATION CALCULATION:
N∑XY-∑X∑Y
r= ___________________________
√(N∑X2 -∑X2 ) √(N∑Y2 -∑Y2 )
126(154.79)-(- 21.99)(-24.72)
= _____________________________
√(126)(167.74)-483.94√ (126)(372.19)-611.46
19499.69-543.98
= ______________________
√(21135.8-483.94) √(46896.9-611.469)
r= 0.612
INFERENCE:
From the above it was inferred that the CIPLA Pharma company is
positively correlated with NIFTY Index.
4.2 ANALYSING THE RELATIONSHIP BETWEEN THE RANBAXY with
NIFTY index ( Using Correlation) :
T RETUR
RETURN N
Date Open Close X X2 Open Close Y y2 XY
Price Price Price Price
1-Oct-10 6030.3 6143. 1.87552 3.5176 556.35 568.3 2.14792 4.6135 4.0285
4 9 07 8 97 01
4-Oct-10 6144.7 6159. 0.24004 0.0576 570.25 597.6 4.79614 23.002 1.1512
45 4 21 2 98 86
5-Oct-10 6159.4 6145. -0.22161 0.0491 601.25 595.65 - 0.8674 0.2064
5 8 11 0.93139 93 07
6-Oct-10 6150.9 6186. 0.57714 0.3330 599 587.25 -1.9616 3.8478 -
5 45 7 98 85 1.1321
3
7-Oct-10 6186.8 6120. -1.07567 1.1570 591.35 577.4 - 5.5649 2.5375
5 3 63 2.35901 24 12
8-Oct-10 6121.4 6103. -0.29323 0.0859 580.2 586.15 1.02550 1.0516 -
45 86 8 68 0.3007
1
11-Oct- 6105.9 6135. 0.48968 0.2397 590.5 599.65 1.54953 2.4010 0.7587
10 5 85 6 93 4 57 86
12-Oct- 6135.9 6090. -0.7342 0.5390 602 597 - 0.6898 0.6097
10 5 9 46 0.83056 38 99
13-Oct- 6091.4 6233. 2.33852 5.4686 597.15 607.45 1.72486 2.9751 4.0336
10 5 9 4 93 41 25
14-Oct- 6234.3 6177. -0.91349 0.8344 612.4 596.4 - 6.8260 2.3866
10 35 73 2.61267 52 62
15-Oct- 6175.9 6062. -1.83374 3.3626 598.6 582.7 -2.6562 7.0553 4.8707
10 65 05 87 78
18-Oct- 6112.7 6075. -0.60202 0.3624 585 580.3 - 0.6454 0.4836
10 5 95 29 0.80342 82 74
19-Oct- 6114.4 6027. -1.42531 2.0315 585 576.6 -1.4359 2.0618 2.0466
10 5 3 15 01 02
20-Oct- 6002.9 5982. -0.34733 0.1206 574 587.1 2.28223 5.2085 -
10 5 1 38 74 0.7926
9
21-Oct- 6008.9 6101. 1.54104 2.3748 589.8 596.05 1.05968 1.1229 1.6330
10 5 7 27 1 24 19
22-Oct- 6113.4 6066. -0.77453 0.5998 597.2 605.45 1.38144 1.9083 -
10 05 94 7 95 1.0699
7
25-Oct- 6101.2 6105. 0.07457 0.0055 610 612.2 0.36065 0.1300 0.0268
10 5 8 5 61 6 73 96
26-Oct- 6116.3 6082 -0.5608 0.3144 615 600.3 - 5.7132 1.3404
10 93 2.39024 66 41
27-Oct- 6075.4 6012. -1.03367 1.0684 600 592 - 1.7777 1.3782
10 5 65 7 1.33333 78 24
28-Oct- 6039.9 5987. -0.86507 0.7483 592.9 580.45 - 4.4093 1.8165
10 5 7 52 2.09985 62 23
29-Oct- 6021.1 6017. -0.0573 0.0032 580 579.75 -0.0431 0.0018 0.0024
T RETUR
RETURN N
Date Open Close
N∑XY-∑X∑Y X X2 Open Close Y Y2 XY
Price Price
r=
1-0ct- ___________________________
6030. 6143. 1.87552 3.5176 1447. 1484. 2.52771 6.3893 4.7407
10 3 4 9 07 95 55 2 26 95
√(N∑X2 -∑X2 ) √(N∑Y2 -∑Y2 )
4-Oct-10 6144. 6159. 0.24004 0.0576 1488 1497. 0.64516 0.4162 0.1548
7 45 4 21 6 1 33 67
5-Oct-10 6159. 6145. -0.22161 0.0491 1498 1502. 0.30373 0.0922 -
126(177.55)-(-
45 8 21.99)(-61.04) 11 55 8 57 0.0673
= _____________________________ 1
6-Oct-10 6150. 6186. 0.57714 0.3330 1505. 1522. 1.16603 1.3596 0.6729
√(126)(167.74)-483.94√
95 45 (126)(525.72)-3726.67
7 98 1 65 5 39 73
7-Oct-10 6186. 6120. -1.07567 1.1570 1526 1553 1.76933 3.1305 -
85 3 63 2 34 1.9032
22372.09-1342.949 1
8-Oct-10 6121. 6103. -0.29323 0.0859 1562. 1560. - 0.0266 0.0478
= ______________________
4 45 86 95 4 0.16315 19 42
9-Oct-10√(21135.8-483.94)
6105. 6135. 0.48968 0.2397
√(66241.7-3726.6) 1575 1567. - 0.2032 -
95 85 6 93 9 0.45079 15 0.2207
5
11-Oct- 6135. 6090. -0.7342 0.5390 1566 1570. 0.27777 0.0771 -
10r= 0.5695 9 46 35 8 6 0.2039
4
12-Oct- 6091. 6233. 2.33852 5.4686 1572 1587. 0.96056 0.9226 2.2462
10 45 9 4 93 1 75 92
13-Oct- 6234. 6177. -0.91349 0.8344 1587. 1574. -0.7687 0.5908 0.7022
INFERENCE:
10 3 35 73 1 9 96 01
14-Oct- 6175. 6062. -1.83374 3.3626 1598 1585. - 0.6366 1.4630
10 9 65 05 25 0.79787 91
From the above
15-Oct- 6112. it was inferred
6075. that the
-0.60202 RANBAXY
0.3624 company
1585. 1614. is 1.86405
positively3.4747
correlated with
-1.1222
NIFTY Index.10 75 95 29 25 8 9 17
18-Oct- 6114. 6027. -1.42531 2.0315 1620 1628. 0.53086 0.2818 -
10 4.3 45 ANALYSING 3 THE RELATIONSHIP
15 BETWEEN6 THE Dr.
4 REDDY 17 with
0.7566NIFTY
5
index 19-Oct-( Using Correlation)
6002. :
5982. -0.34733 0.1206 1628. 1584. - 7.3324 0.9405
10 95 1 38 6 5 2.70785 37 14
20-Oct- 6008. 6101. 1.54104 2.3748 1603. 1615. 0.75129 0.5644 1.1577
10 9 5 7 27 9 95 4 42 79
21-Oct- 6113. 6066. -0.77453 0.5998 1627 1609. -1.0756 1.1569 0.8330
10 4 05 94 5 14 82
22-Oct- 6101. 6105. 0.07457 0.0055 1630. 1638. 0.52144 0.2719 0.0388
10 25 8 5 61 1 6 86
25-Oct- 6116. 6082 -0.5608 0.3144 1647. 1651. 0.23669 0.0560 -
10 3 93 7 6 4 24 0.1327
4
26-Oct- 6075. 6012. -1.03367 1.0684 1648 1651. 0.20024 0.0400 -
10 45 65 7 3 3 97 0.2069
8
27-Oct- 6039. 5987. -0.86507 0.7483 1650 1645. - 0.0617 0.2149
10 95 7 52 9 0.24848 45 58
28-Oct- 6021. 6017. -0.0573 0.0032 1651 1659. 0.52089 0.2713 -
10 15 7 83 6 6 33 0.0298
5
10 3 55 8 75 9 7 92 64
1-Nov-10 6127. 6119 -0.13953 0.0194 1671 1673. 0.17654 0.0311 -
55 7 95 1 67 0.0246
3
2-Nov-10 6150. 6160. 0.16096 0.0259 1684 1695. 0.67696 0.4582 0.1089
6 5 08 4 74 63
3-Nov-10 6209. 6281. 1.16271 1.3519 1705 1734. 1.70967 2.9229 1.9878
6 8 6 08 15 7 97 69
4-Nov-10 6321. 6312. -0.14869 0.0221 1740 1753. 0.78160 0.6109 -
85 45 09 6 9 13 0.1162
2
5-Nov-10 6335. 6273. -0.97944 0.9593 1757 1760. 0.17359 0.0301 -
25 2 04 05 1 34 0.1700
N∑XY-∑X∑Y 2
8-Nov-10
r= 6281 6301. 0.32717 0.1070
___________________________ 1756. 1757. 0.05979 0.0035 0.0195
55 7 45 1 15 2 75 62
9-Nov-10 √(N∑X
6303. ∑X ) √(N∑Y ∑Y 0.1903
)
2- 2 2- 2
6275. -0.43629 1760. 1744 - 0.8784 0.4089
2 7 46 5 0.93723 07 02
10-Nov- 6286. 6194. -1.46508 2.1464 1739 1736. - 0.0241 0.2274
10 35 25 21.99)(-1.78) 57
126(76.4081)-(- 3 0.15526 06 71
11-Nov- 6182. 6071. -1.78979 3.2033 1721 1742. 1.27542 1.6266 -
=10 _____________________________
3 65 37 95 1 99 2.2827
√(126)(167.74)-483.94√ (126)(239.81)-3.17 3
12-Nov- 6079. 6121. 0.68586 0.4704 1748 1762. 0.82379 0.6786 0.5650
10 9 6 7 13 4 9 44 16
15-Nov- 6143. 5988. -2.51894 6.3450 1763 1751. - 0.4108 1.6145
10 9627.47-39.225
45 7 74 7 0.64095 21 24
16-Nov-
= 6075. 5998. -1.26976 1.6122
______________________ 1780 1767. - 0.4659 0.8667
10 95 8 91 85 0.68258 21 18
18-Nov- √(21135.8-483.94)
6011. √(30216.52-3.17)
5890. -2.01288 4.0516 1776 1770. - 0.0959 0.6233
10 3 3 69 5 0.30968 05 57
19-Nov- 5920. 6010 1.50483 2.2645 1770 1762. - 0.1700 -
r=10 0.389 9 4 7 0.41243 98 0.6206
4
22-Nov- 5971. 5934. -0.61626 0.3797 1756. 1760. 0.23347 0.0545 -
10 55 75 71 1 2 2 09 0.1438
8
INFERENCE:
23-Nov- 5946. 5865. -1.36292 1.8575 1761. 1781. 1.1413 1.3025 -1.5555
10 8 75 45 15 25 65
24-Nov- 5883. 5799. -1.43101 2.0477 1788. 1770. -1.026 1.0526 1.4682
10 the above
From 95 it was75
inferred that 94 REDDY5company
the Dr. 15 is positively correlated
75 17
with
25-Nov- 5828. 5751. -1.31422 1.7271 1771 1787. 0.91191 0.8315 -
NIFTY Index.
10 55 95 76 15 4 87 1.1984
6
26-Nov- 5789. 5830 0.69171 0.4784 1805. 1796. - 0.2088 -
10 95 6 71 1 85 0.45704 84 0.3161
4
29-Nov- 5811. 5862. 0.87927 0.7731 1798 1786. - 0.3949 -0.5526
10 6 7 6 26 7 0.62848 82
30-Nov- 5871 5960. 1.53125 2.3447 1788 1775. - 0.4770 -
10 9 5 43 65 0.69072 88 1.0576
6
1-Dec-10 6023. 6011. -0.18844 0.0355 1785 1787. 0.15126 0.0228 -0.0285
05 7 11 7 1 8
2-Dec-10 6013. 5992. -0.34174 0.1167 1796 1827. 1.77895 3.1646 -
35 8 86 95 3 75 0.6079
4
3-Dec-10 6033. 5992. -0.68615 0.4708 1835 1819. - 0.7227 0.5833
65 25 04 4 0.85014 32 23
6-Dec-10 5995. 5976. -0.30859 0.0952 1826 1830. 0.22453 0.0504 -
05 55 27 1 5 16 0.0692
7-Dec-10 5954. 5903. -0.85147 0.7250 1840 1842. 0.12771 0.0163 -
4 7 03 35 7 12 0.1087
5
8-Dec-10 5924. 5766. -2.66278 7.0904 1853 1812. - 4.7770 5.8199
25 5 2 5 2.18564 44 01
9-Dec-10 5761 5857. 1.67245 2.7970 1813 1808. - 0.0657 -
4.4INDEX PRICE
ANALYSING35 THEMARK 3 98 STOCK
RELATIONSHIP PRICE
BETWEEN35 STOCK
0.25648 82 0.4289
THE GLAXOSMITHKLINE with
ET RETUR 5
NIFTY10-Dec-
index ( 5882.
Using Correlation)
5907. RETUR :
0.42497 0.1806 1801 1822. N
1.17157 1.3725 0.4978
10 65 65 N 9 07 1 1 79 93
DATE 5928.
13-Dec- Open 5944.
Close 0.25975
X X2
0.0674 Open
1822 Close
1828. Y
0.36772 Y2
0.1352 XY 0.0955
10 7 1 3 72 Price Price7 8 24 19
1-Oct-10 5931.
14-Dec- 6030. 5892.
6143. -0.65502
1.8755 3.5176
0.4290 2220
1825 2251.
1791. 1.3986 - 1.9562
3.4504 2.6232
1.2167
10 15 3 34 29 07
46 051 49
1.85753 1833 0615
4-Oct-10 5910.
15-Dec- 6144. 5948.
6159. 0.64630
0.2400 0.0576
0.4177 2270
1802 2301.
1788. 1.4008 - 1.9624
0.5365 0.3362 -
10 55 7 45
75 442 21
06 88 81
0.73252 6885 0.4734
73
5-Oct-10 6159. 6145. - 0.0491 2270 2285. 0.6674 0.4454 -0.1479 3
16-Dec- 5926.45 5947.8 0.34082
0.2216 11
0.1161 1778 15
1704. 01 - 17.228
24 -
10 85 05 12 6 2 4.15073 57 1.4146
6-Oct-10 6150. 6186. 0.5771 0.3330 2285. 2290. 0.2363 0.0558 0.1363 6
20-Dec- 5960.95 6000.
45 0.67529
47 98
0.4560 1
1710 5
1686. 14 - 1.8566
44 88 -
7-Oct-10
10 6186.
4 6120.
65 - 1.1570
17 2298 2275.7 - 0.997305 1.0742
1.36257 0.9201
85 3 1.0756 63 05 0.9986 91 64 3
21-Dec- 6019 7
5984. -0.57485 0.3304 1633. 1676. 9
2.62553 6.8934 -
8-Oct-10
10 6121. 6103.
4 - 0.0859
48 2276
95 2293.
85 0.7644 9 0.584457 1.5092 -
4 45 0.2932 86 4 99 59 0.2241 8
22-Dec- 6005. 5980 -0.43124 3 0.1859 1680. 1683. 0.17856 0.0318 8 -
11-Oct-
10 6105.
9 6135. 0.4896 0.23977 2316. 05 2286.
05 - 6 1.705386 0.0770 -
10 95 85 86 93 4 15 1.3059 9 0.6394 1
23-Dec- 5940. 6011. 1.20112 1.4427 1685 1683. 1 - 0.0046 8 -
12-Oct-
10 6135.
25 6090.
6 - 0.5390
8 08 2310 2288.
85 - 0.838258 0.6722
0.06825 0.0819
10 95 9 0.7342 46 85 0.9155 95 28
24-Dec- 6013. 5998. -0.25277 0.0638 1676 1694. 8
1.08293 1.1727 -
13-Oct-
10 6091.
3 6233.
1 2.3385 5.4686 94 2280 2295.
15 0.6600 6 0.435749 1.5436
0.2737
10 45 9 24 93 05 88 16 31 4
14-Oct- 6005.
27-Dec- 6234. 5996
6177. -0.15569 - 0.8344
0.0242 2320
1686 2305.
1689. - 0.4124
0.22242 0.0494 0.5866 -
10 10 35 3 35 0.9134 73
41 1
75 0.6422 7471 0.0346
84
9 4 3
15-Oct- 6005.
28-Dec- 6175. 6060.
6062. 0.91921 - 3.3626
0.8449 2310
1681 2300.
1693. - 0.1603
0.74955 0.5618 0.7342
0.6889
10 10 15 9 65 1.83371
35 05
49 756 0.4004 4 4731 998
29-Dec- 6062. 6101. 4
0.65156 0.4245 1690 1685 3 - 0.0875 -
18-Oct-
10 6112.
35 6075.
85 - 0.3624
3 34 2264. 2351. 3.8332
0.29586 14.69332 0.1927 -
10 75 95 0.6020 29 4 2 45 77 2.3076 7
30-Dec- 6105. 6134. 0.481562 0.2319 1685 1662. - 1.7280 9 -
19-Oct-
10 6114.
1 6027.
5 - 2.0315
5 04 2369 2353
85 - 0.456116 0.9626
1.31454 0.6330
10 45 3 1.4253 15 0.6753 52 42 4
31-Dec- 6177. 6157. -0.32133 1 0.1032 1671 1670. 9 - 0.0008 0.0096
20-Oct-
10 6002.
45 5982.
6 - 0.1206
53 2365 2361.5 - 0.027195 0.057215
0.02992
10 6172.
3-Jan-11 95 6146.1 -0.42769
0.3473 38
0.1829 1672 1
1696. 0.1649
1.45035 2.103594 76
-0.6203
75 35 3 15 25 9 41
21-Oct- 6141.
4-Jan-11 6008. 6079.
6101. -1.00222
1.5410 2.3748
1.0044 2370
1696 2352.
1715. - 0.5328
1.13502 1.2882 -1.1249 -
10 35 9 85 47 275 7
25 0.7299 4 3879 1.1375
6 5
22-Oct- 6107
5-Jan-11 6113. 6066.
6048. -
-0.96201 0.5998
0.9254 2352
1722 2348
1716. - - 0.0289
0.1076 0.1317
0.3156
10 4 05
25 0.7745 94
65 35 0.1700
0.32811 2354 2242
6-Jan-11 6030. 5904. 3
-2.09421 4.3857 1714 1672. 7 - 5.8200 5.0522
25-Oct- 6101.
9 6105.
6 0.0745 0.0055
36 2358 2352.
65 - 0.057486
2.41249 -
63
10 5901.
7-Jan-11 25 5762.8 75
-2.34609 61
5.5041 1670 35
1654. 0.2396 - 0.8782
13 0.0178
2.1985
3 85 53 35 1
0.93713 05 784
26-Oct- 5767.
10-Jan- 6116. 6082
5754. -
-0.24012 0.3144
0.0576 2350
1665 2308.
1670. - 3.0736
0.35435 0.1255 0.9831 -
10
11 95 3 1 0.5608 93
58 89 1.7531 4 867 0.0850
84
27-Oct- 5800.
11-Jan- 6075. 5863.
6012. 1.08964 - 1.0684
1.1873 2308
1675. 2261.
1669. - - 3.9896
0.1157 2.0646 -
10
11 45
05 2565 1.03366 7
28 1 94 1.9974
0.34028 0889 0.370749
7 8
28-Oct- 5850.
12-Jan- 6039. 5751.
5987. -1.68953 - 0.7483
2.8545 2260.
1670. 2258.
1642. - - 0.0082
2.7809 0.0784
2.8174
10
11 95
75 97 0.8650 52
01 95
05 92 0.0906
1.66761 2139 36 8
13-Jan- 5752. 5654. 7
-1.6959 2.8760 1644 7
1651. 0.45316 0.2053 -
29-Oct-
11 6021.
1 6017.
55 - 0.003285 2258. 2222.
45 - 3 2.603757 0.0924
0.7685
10 15 7 0.0573 83 9 45 1.6136 61 57 2
14-Jan- 5648. 5654. 0.10533 0.0110 1651 1640. 2 - 0.3892 -
1-Nov-
11 6092.
8 6117.
75 0.41442 0.1717 95 2212 2199.7 0.62386
- 0.342707 0.0657 -
10 3 55 58 75 05 0.5854 44 0.2426 1
17-Jan- 5682. 5724. 0.73030 0.5333 1655 1671. 1.006044 1.0121 0.7347 4
2-Nov-
11 N∑XY-∑X∑Y
6127.
55 6119
05 6- 0.019447 2239 2240.
65 0.0826 2 0.0068 21 -
19
10
18-Jan- 5737.
r= 55 0.1395
5691. -0.80699 0.6512
___________________________ 7 1680. 85
1657. 26 27 0.0115
-1.3302 1.7694 1.0734
11 35 05 3 37 2 85 29 361
3-Nov-√(N∑X
19-Jan- 6150.
5656
2-
∑X 2
5711.) √(N∑Y
6160. 2-
0.1609
0.98302∑Y2 0.0259
)
0.9663 2244.
1635. 2220.
1666. 1.88015- 1.2107
3.5349 1.8482 -
10
11 6 65 6
7 08
42 85 1
25 1.1003 9 0698 0.1771 47
20-Jan- 5692. 5696. 0.07817 0.0061 1674 1651. 2
-1.3172 1.7350 1 -
4-Nov- 6209. 6281.
11 126(19.75031)-(-
05 5 1.1627 9 1.3519
21.99)(-5.24) 12 2210. 2224.
95 0.6560 0.430427 0.7628 0.1029
10 6 8 16 08 1 6 79 4 33 8
=21-Jan-
5-Nov-_____________________________
6321.
5717. 6312.
5743. - 0.0221
0.4574 0.2092 2230.
1647 2276.
1636. 2.0626 4.2546
- 0.4379 -0.3067 -
10
11 85
1 2545 0.1486 09
15 1 11 0.66181
88 8192 0.3027
√(126)(167.74)-483.94√ (126)(325.62)-27.53
9 1
8-Nov- 5763.
24-Jan- 6335. 5687.
6273. -1.31695 - 0.9593
1.7343 2300
1647 2293.
1578. - - 0.0798
17.121 0.2767
5.4493
10
11 25
3 42 0.9794 04
67 5 0.2826
85 4.13783 6861 9826
2488.53-115.431 4 1
25-Jan- 5725. 5604. -2.11343 4.4665 1581 1555. - 2.6940 3.4689
= 9-Nov-
11 6281
3 6301.3
______________________0.3271 0.107071 2295 2302.
05 0.3093
1.64137 0.095783 0.101207
10 5614
27-Jan- 5512. 55 -1.81421
77 3.291345 1547. 1
1563. 68
1.03732 09
1.0760 18 -
10-Nov-
11√(21135.8-483.94)
6303. 6275.
15 √(41029.1-27.533)
- 0.190374 2303
25 2255.3 - 4 4.2093 0.8951
42 1.8819
10 2 7 0.4362 46 75 2.0516 57 16 3
28-Jan- 5452. 5505. 0.97844 9 0.9573 1591 1624. 2.089887 4.3676 2.0448
11-Nov-
r= 6286.
11 0.0815 55 6194.9 1- 2.146447 2304 2254.
25 - 1 4.615701 3.147625
10
31-Jan- 5537.35 5417. 25 -2.16893
1.4650 4.704257 1632 5 2.1484 - 1.9261
1609. 84 31
3.0101
11 3 2 8 45 35 1.387874 77 84
12-Nov- 5469.
1-Feb-11 6182. 5432
6071. -0.68653 - 3.2033
0.4713 2252
1620 2228.
1613. - - 1.1075
0.1659 1.8835
0.2796
10 55 3 65 1.7897 37
21 34 1.0524
0.40741 4181 6897
INFERENCE:
2-Feb-11 5430. 5526. 9
1.77333 3.1447 1609. 1600. - 0.2923 -
15-Nov- 6079.
45 6121.
75 0.68584 0.4704 12 2220
05 2233.
35 0.5878
0.54069 0.345548 0.40310.9588
10 9 6 67 13 05 38 53 78 3
16-Nov- 6143. 5988. - 6.3450 2221 2270. 2.2219 4.9371
From the above it was inferred that the GLAXOSMITHKLINE company is positively correlated
3-Feb-11 5519. 5395. -2.24913 5.0586 1607 1580. - 2.6378 -
3.6529
10 45
9 75 7 2.5189 74
08 35 72
9 1.62414 645 5.5970 2
with NIFTY Index.5430.
4-Feb-11 5396 -0.6289 4 0.3955 1581. 1565. -1.0307 1.0623 0.6482 2
18-Nov- 6075.
15 5998. - 1.61221 2290
45 2277.
15 - 0.312442 0.709703
10
4.5
95
ANALYSING
8 1.2697
THE RELATIONSHIP
91
BETWEEN
2 0.5589
THE SUN 27
PHARMA 35
with
7-Feb-11 5432. 5312. -2.20531 4.8633 1584 1534. - 9.7262 6.8776
NIFTY index ( Using 35 Correlation)
55 :6 79 5
6 3.11869 08 62
19-Nov-
8-Feb-11 5293. 6011. 5890. -
5253. -0.74626 0.55694.0516 2290
1526 2227.
1518. - - 7.4012
0.2447 5.4760
0.3692
10 05 3 553 2.0128 69
06 7 2.7205
45 0.49476 5185 7719
9-Feb-11 5246. 5225. -0.3868 0.149 1509 1491. 2 - 1.3836 0.4540
22-Nov- 5920.
05 60108 1.5048 2.2645 2235 2261.
25 1.2013
1.17628 1.443224 1.807848
10
10-Feb- 5219. 9 5310 39
1.73095 2.9962 4 1485 85
1497. 42
0.82491 23
0.6804 26
1.4278
23-Nov-
11 5971.
65 5934. 9- 0.379719 2270 2240.
25 - 6 1.700386 0.803595
10
11-Feb- 5340.55 5456 75 0.6162
2.16750 4.6980 71 1499 4 1.3039
1541. 2.81187 7.9066 24 75
6.0947
11 25 6
2 63 15 6 5 39 42
24-Nov- 5467.
14-Feb- 5946. 5481
5865. 0.24233 - 1.8575
0.0587 2255
1544 2208.
1538. - - 4.2521
0.1223 2.8104 -
1110 75 8 75 1.3629 45
24 56 2.0620
0.34974 9119 0.084751
2 8 5
25-Nov- 5467.
15-Feb- 5883. 5481.
5799. 0.25788 - 2.0477
0.0665 2209.
1520. 2098.
1511. - - 25.443
0.3741 7.2182 -
1110 95
6 75
7 1.43103 94
04 55 052 5.0441
0.61164 2205 0.157705
1 3 3
26-Nov-
16-Feb- 5828.
5501. 5751.
5546. - 1.7271
0.81338 0.6615 2115
1516 2107. - 0.1342
1525. 0.64973 0.4221 0.5284 0.4815
1110 55
7 4595 1.31425 76
95 25
85 0.3664 6 7157 786
29-Nov-
11 5789.
55 5830
95 0.6917 0.4784
55 2110 2118.
35 0.3862 6 0.149134 0.2671 1.4367
10 95 16 71 15 56 94 79 8
30-Nov-
18-Feb- 5811. 5518.
5456. 5862. 0.8792
1.13623 0.7731
1.2910 2123.
1537. 2130.
1537. 0.3130 0.0980
- 0.0002 0.2752 -
1110 66 67 769 26
38 955 6
25 96
0.01626 2964 0.018498
1-Dec- 5871 5960. 1.5312 2.3447 2125 2170. 2.1294 4.5343 3.2606 8
21-Feb-10 5504. 5469.9 55
-0.63949 43
0.4089 1531. 25
1550. 12
1.25693 94
1.5798 73
-0.8038
2-Dec-
11 6023.
INDEX
4 6011.
PRICE
2 MARK- 0.0355
45 2199.5
STOCK 2163.
PRICE
75 STOCK - 8 2.678192 0.3083
22-Feb-10 5452.05 5437.7 0.1884
ET
-0.27694 11
0.0766 8
1546 8 1.6365
RETUR
1578. 2.07309 4.2977 73 89 -
11 45 35 RETUR 4 96 05 N 1 2 1 0.5741
3-Dec- 6013. 5992. N - 0.1167 2150 2131. - 0.7605 0.2980 2
DATE10
23-Feb- Open
5408.35 5262.
Close8 0.3417
X
-2.70025 X286
7.2913 Open
1568 25 0.8720
Close
1500. Y Y246
- 18.751 XY29
11.693
11 75 7 4 73 Price Price1 4.330369 99 07
6-Dec-
1-Oct-10
24-Feb- 6033.
5321. 5992.
6030. 5303.
6143. 1.8755
-0.32888 - 0.4708
3.5176
0.1081 2131
2023
1520 2131.
2030. 0.0164
1527. 0.3633 0.0002
0.48684 0.1320 0.2370 0.6814 - -
11 10 65
05 3 254
55 0.6861
29 04
07
64 35
354 24
22 2 7
03 0.0112
15 0.1601 2
4-Oct-10 6144. 6159. 0.24005 0.0576 2064 2064. 0.0314 0.0009 0.0075 71
7-Dec-
25-Feb- 5995.
5330. 7 5976.
5333.45 44
0.05816 - 0.0952
21
0.0033 2111
1534 2150.
65 1.8900
1546 92 3.5724
0.78226 92
0.6119 -
6
0.0454
11 10
5-Oct-10 05
6159.
15 55
6145.
25 0.3085- 27
0.0491
83 2084. 9
2061 99 76
- 9 1.2602 0.5832
44 0.2487 97
28-Feb- 538245 5522. 8 0.2216
2.606839 11
6.7956 1540.4 1582. 1.1226
2.73683 7.4902 87 6
86
7.1344
8-Dec-
11 5954. 5903.3 -
1
8 0.7250
02 21751 2146.
25 3- 5 1.747267 1.125585
1-Mar-1110
6-Oct-10 6150.
5478. 4 5536.7
6186. 0.8514
0.5771
1.05413 03
0.3330
1.1111 2078.
1575. 25 1.3218
2042.
1579. 0.26982 - 2.9670 59
0.0728 08-
0.2844
4595 245 7
47 98
91 351 55 4
35 1.7225 4 7605 0.9941 3
9-Dec-
3-Mar-11 5924. 5538.
5586. 5766. -0.84941 - 7.0904
0.7215 2141.
1586 2130.
1571. 2- - 0.2710
0.7903 1.3862 5
0.7551
10
7-Oct-10 25
6186.
2 755
6120. 2.6627- 2
1.1570
05 7
2040 559 0.5206
2038. 0.88903 - 0.0043 3973 0.07118454
4-Mar-11 5490.85 5463. 3 1.0756
-0.489988 63
0.2400 1561 65 0.0661
1614. 1
3.43369 79
11.790 84 -
10-Dec- 5761
05 5857.
15 1.67247 2.7970
78 2184. 2135.6 -8 6 4.939827 1.6824 -
10
8-Oct-10 6121. 35
6103. 53- 98
0.0859 4
2039 85 2.2225
2064. 1.2457 1.5517 54 3.7171 -3
7-Mar-11 5466. 4 5520.45 0.2932
1.00071 86
1.0014 1617 1602.4 8 - 0.7985
09 9 0.3652 6 -
13-Dec- 5882.
1 5907.
8 0.42493 0.1806
27 2110. 2156.
55 2.1798
0.89363 4.751975 0.9264 8
0.8942
10
11-Oct- 65
6105. 65
6135. 79
0.4896 07
0.2397 2
2076 2
2070 88 - 0.0835 12 06 -7
14-Dec-
10
8-Mar-11 5928.
5542. 5944.
95 5531 85 0.2597
86
-0.20569 0.0674
93
0.0423 2158
1605 2196.
1619. 1.7794
0.90031 3.1663
0.2890 31 0.4622
0.8105 0.1415 -
10 4 7 1 53 72
07 4
45 252 2 5561 0.1851123
15-Dec-
12-Oct- 5931.
6135. 5892.
6090. -- 0.4290
0.5390 2180
2099. 2193 0.5963- 0.3556
2090. 0.2133 0.3391 -8
10 10
9-Mar-11 5516.95 5494.39
15 0.6550
0.7342
-0.39339 46
46
0.1547 8
1609 1590. 3
1 0.4619 - 1.3435 1
97 0.3906
62
0.4559
1 4 2 59 35 1.15911 5 24 185
16-Dec-
13-Oct-
10-Mar- 5910.
5456. 5948.
6091. 5445.
6233. 0.6463
2.3385
-0.19611 0.4177
5.4686
0.0384 2190.
2100
1580 2195.
2104. 0.2283
1586. 0.2357 0.0521
0.41455 0.0555 0.1475
0.1718 0.5512
-0.0813
1110 10 55
1545 759
45 02
24 06
93
59 05 05
95
55 05
14 7 23
6157 54
23
20-Dec-
14-Oct-
11-Mar- 5926.
5436. 5947.
6234. 5531.
6177. 0.3408
1.74744- 0.1161
0.8344
3.0535 2190
2120
1590 2201.
2103. 0.5410
1597. 0.46540 0.2927
- 0.6354 0.1844
0.2166 0.7282
0.8132
1110 10 85
5 3 05
535 228
0.9134 6
73
74 851 96 9
4 0.7971 858
05 171
78
21-Dec-
14-Mar- 5960.
5420 6000.
5449. 0.6752
0.54704 9 0.4560
0.2992 2180
1579. 2200.
1540. 0.9288 0.8628 0.6272
7 - 6.2983 -1.3729
1110
15-Oct- 6175.4 65
6062.
65 98- 17
3.3626
61 2092.
9 25
2039. 99- 6.4386
25 2.50965 5456 4.653076
22-Dec-
15-Mar-10 6019
5475. 9 5984.
5511.65 1.8337
0.64281 - 0.3304
05
0.4132 2166
65
1560. 2201.
55 1.6343
2.5374 2.6710
65
1570. 0.61821 0.3821 0.3973 -0.9395 3
1110 95 154 0.574841 48
06 95 46 495 3 9788 94
18-Oct-
16-Mar- 6112. 5446.
5455. 6075. -0.160395- 0.3624
0.0257 2099
1545 2049.
1526. -1.1877 - 5.6516
1.4106 1.4311
0.1904
23-Dec-
11 10 6005.
475 5980
6595 0.6020 - 0.1859
29
25 2165. 2205.
651 1.8590
2.3773 3.4561 6237 97-
97
10
17-Mar- 5475. 9 5373. 0.4312
-1.8565 2 7
3.4466 05
1532 3
1493. 792 76 0.8017
- 6.2336 4.6351
19-Oct-
11 6114.
35 6027.
7 4- 2.0315
01 2067 2047.
75 2.49674 - 0.8583 92 1.3205 197
24-Dec-
18-Mar-10 5940.
5408. 6011.3
45 5364. 1.2011
1.4253
-0.8135 1.4427
15
0.6617 2200
1509 2212. 0.55
85 0.9264
1510. 0.3025
0.07289 0.0053 35 0.6606
-0.0593
1110 25
75 756 281 08
77 11 66 14 2
27-Dec-
20-Oct-
21-Mar- 6013.
6002.
5390. 5998.
5982.
5413. 0.42664 -- 0.0638
0.1206
0.1820 2225
2032
1516 2226.
2037. 0.0853
0.2805 0.0072
0.0786
1533. 1.15435 1.3325 0.4925 --
1110 10 3
8595 8511 0.2527
0.3473 9 94
38
29 97
5 93
12 4 92
87 0.0215
32 0.0974 04
22-Mar- 5411. 5480. 1.2723173 1.6187 1530 1556. 1.75490 3.0796 2.2327 93
28-Dec-
21-Oct-
11 6005.
6008.
4 5996
6101.
25 1.5410 -
4 0.0242
2.3748
83 2205
2031. 2238.
85 1.5306
2120. 4.4006 2 2.3427
19.366 81 6.7816 -
86
10 10
23-Mar- 5501.359 5522. 5 0.1556
47
0.37442 41
27
0.1401 5
1561 75
1542.9 12
89 74
06
- 1.4659 0.2383
71 -
22-Oct-
11 6113.
8 6066.
4 93- 0.5998
93 2125 2139.1 0.6964
1.21076 0.4850 45 0.4533 1-
29-Dec-
10 6005.4 6060.05 0.9192
0.7745 0.8449
94 2231 2281.8 2.2545
71 5.0831 71 2.0724
0.5394
10 15 35 113 49 3 94 96 484
30-Dec-
25-Oct- 6062.
6101. 6101.
6105. 0.6515
0.0745 0.4245
0.0055 2270
2154 2324.
2137. 2.4185- 5.84910.5691 1.5758-
10 10 35
25 858 63
75 34
61 9
75 02
0.7544 53
35 0.0562 05
31-Dec- 6105. 6134. 0.4815 0.2319 2251. 2337. 3.81041 14.519 1.83496
10
26-Oct- 6116.1 60825 65- 04
0.3144 7
2146. 5
2128. 54- 0.7425 56 0.48328
3-Jan-11
10 6177.3 6157. 0.5608 - 0.1032
93 2344.
95 2342.
45 0.8616 - 0.0058 05 0.0246 31
27-Oct- 6075. 6012. 3- 1.0684 2132 2099. 8- 2.3813 1.5951
4-Jan-11
10 6172.
45 6146.
65 1.0336 - 0.18297 2335. 2347. 1 1.5431 0.2934
0.5417 18 07-
75 35 0.42767 15 15 8 215 62 0.2316
28-Oct- 6039. 5987. 9- 0.7483 2113 2118 0.2366 0.0559 -0.2047 9
5-Jan-11
10 6141.
95 6079.7 0.8650 - 1.0044 52 2360 2381. 0.92163 0.8493 94 -
35 8 1.00227 5 75 1 65 0.9236
29-Oct- 6021. 6017. 2- 0.0032 2130 2110. - 0.8772 0.0536 6
6-Jan-11
10 6107
15 6048.7 0.0573 - 0.9254 83 2389. 2400.
05 0.4309
0.9366 0.1857 56 66-
25 0.9620 65 9 2 82 44 0.4146
1-Nov-10 6092. 6117. 0.4144 1 0.1717 2169. 2190. 0.9771 0.9548 0.4050 1
CORRELATION
7-Jan-11 6030.
3 CALCULATION:
5904.
55 58 - 4.3857
75 2357. 5 2376. 7 0.8315
84 0.6914
88 01-
2-Nov-10 6127. 9 61196 2.0942 - 0.019436 15
2172 75 13
2190. 0.8494 0.7215 13 1.7413 -
55 0.1395 1 7 45 48 61 0.1185 7
N∑XY-∑X∑Y
10-Jan- 5901. 5762. - 5.5041
3 2353 2390. 1.5767 2.4860 -
3
11
3-Nov-10 6150. 3 85 2.3460
6160. 0.1609 0.0259 53 2192 1 11 16
2249. 2.6140 6.8332 0.4207 3.6991
r= ___________________________
96 1
6 5 08 3 51 63 57
11-Jan-√(N∑X
4-Nov-10 5767.
6209. ∑X5754.
2 - 6281.
2 1.1627
) √(N∑Y 2 -
∑Y- 0.0576
2 1.3519
) 2400
2274 2383.
2241. -- 0.4669
2.0113 0.1640-
11 95
6 18 0.2401
16 58
08 6 0.6833
75 1.4182 44
08 1.6489 82
2 31 7
12-Jan- 5800.
5-Nov-10 6321. 5863.
6312. 1.0896- 1.1873
0.0221 2370.
2295 2391.
2276. 0.9134- 0.8344
0.6393 0.9953
0.1188
126(169.5118)-(- 21.99)(-52.52)
11 05
85 25
45 0.148646 28
09 05 7
65 83
0.7995 51
03 73
88
= 13-Jan-_____________________________
5850. 5751. - 2.8545
9 2410 2343. - 7.6483 4.6724
6
11
8-Nov-10 75
6335. 6273.9 1.6895- 0.9593 01 2305 35 2.7655- 0.1901
2294. 23 89
0.4270
√(126)(167.74)-483.94√
25 2 0.9794 3(126)(477.962)-2759.22
04 95 0.4360 6 04 45
14-Jan- 5752. 5654. - 2.8760
4 2320. 2331. 0.47191 0.2226 -0.8003
11
9-Nov-10 1
6281 55 1.6959
6301. 0.3271 0.1070 85 23024 35
2321. 01
0.8536 91
0.7286 0.2792
21358.48-(-1155.5)
17-Jan- 5648. 5654.
55 0.1053
77 0.0110
45 2315 2314.
65 06- 4.66E-
42 -
8
11 8 75
10-Nov- ______________________
6303. 6275. 32 - 0.190395 2323 95
2322. 0.0021 06 0.0002
- 0.0015 0.0169
= 6 3
10 2 7 0.4362 46 1 0.0387 01 03
18-Jan- 5682. 5724. 0.7303 0.5333
√(21135.8-483.94) √(57464.08-2759.22)
9 2341 2313. -
4 1.3599 -
11-Nov-11 55
6286. 05
6194. 06 - 2.146447 2324. 7 1.1661
2328 0.1613 0.0260 49 0.8516 -
10 35 25 1.4650 57 25 7
42 31 0.2363 6
r=19-Jan- 0.65
5737. 5691. - 0.6512
8 2300. 2301. 0.0826 0.0068 -
8
12-Nov-11 35
6182. 05 0.8069- 3.2033
6071. 37 05
2350 95
2321. 07- 1.4604 24 0.0666
2.1629
INFERENCE:10 3 65 1.7897 9 37 6 1.2085 98 6
77
20-Jan- 5656 5711. 0.98309 0.9663 2244 2257. 0.58371 0.3407 0.5738
15-Nov-11 6079. 6121.6 0.685827 42
0.4704 2290 1
2306. 79
0.7139 98
0.5097 7
0.4896
21-Jan-
10 5692.
9 5696. 6 0.0781
67 0.0061
13 2266. 2280.
35 0.6420
74 0.4122
59
From the above it was inferred that the SUN PHARMA company is positively correlated with 0.0501
91
16-Nov-11 05
6143. 5988.5 79- 6.3450 12 05
2323 6
2303. 86- 0.6760 75 98
2.0711
NIFTY Index.
24-Jan-
10 5717.
45 5743. 0.4574
7 2.5189 0.2092
74 2258 2241. 9 0.8222 - 0.5404
34 07-
11 1 25 4 15 4 0.73511 66 0.3362
18-Nov- 6075. 5998. - 1.6122 2348 2289 6- 6.3140 3.1906 6
25-Jan-
10 5763.
95 5687. 8 1.2697 - 1.7343
91 2256. 2269. 0.5961
2.5127 0.3553
47 -0.7851
24
11 4.63Calculation of 6BETA of
4 1.3169 67 CIPLA15for the6months 488from 1.10.2010
93 to
31.3.2011
19-Nov- 6011. 5890. 5- 4.0516 2301. 2214. - 14.049 7.5446
27-Jan-
10 5725.
3 5604.3 2.0128 - 4.4665 69 22701 2234. 85 3.7482 - 2.4113 06 3.2818 76
11 3 3 2.11348 71 75 1.55281 85 63
BETA5920.
22-Nov- CALCULATION : 3
6010 1.5048 2.2645 2235 2230. 6- 0.0344 -
28-Jan-
10 5614
9 5512. 39 - 3.29134 2239. 2278.
85 1.7414
0.1856 3.0325 78 0.2794 -
11 15 1.8142
BETA = (N 74 * ∑XY) –55 55 / (N * (∑X
(∑X * ∑Y) 218 2) – (∑48
X)2) 3.15932
23-Nov- 5971. 5934. 1- 0.3797 2227. 2276. 2.1726 4.7203 -1.3389 1
31-Jan-
10 5452.
55 5505. 0.9784
75 0.6162 0.9573
71 2280 7 2284. 1 0.2039
44 0.0415
84 0.1995
11 55 9 416 47 65 47 95 51
1-Feb-11
24-Nov- 5537.
5946. 5417.
5865. -- 4.7042
1.8575 2310
2283 2265
2273. -- 3.7949
0.1786 4.2251
0.5760
10 3
8 75 126(154.7595)-(-
2 2.1689
1.3629 45 21.99)(-24.72)
45 35 1.9480
0.4226 06
66 83
91
32 59
2-Feb-11
25-Nov- 5469.
5883. 5432
5799. -- 0.4713
2.0477 2252.455 2257.454 0.2331- 0.0543 0.0483 0.3145 -
10 55
95 75 0.6865
1.4310 21
94 1 35 16
0.2197 43
03 0.1600 08
31 8 4
3-Feb-11
26-Nov- 5430.
5828. 5526.
5751. 1.7733 3.1447
- 1.7271 2255
458.9 2242.
446.2 - 0.3222
- 7.5987 3.6227 -
10 45
55 75
95 1.314234 12
76 25 0.5676
2.7565 01
99 1.00657
4-Feb-11
29-Nov- 5519.
5789. 5395.
5830 -
0.6917 5.0586
0.4784 2178
453.9 2230.
449.8 2.4035- 5.7772
0.8357 --
10 9
95 75 2.2491
16 08
71 5 35 81
0.9142 03
57 5.4059
0.6323
3 86
7-Feb-11
30-Nov- 5430.
5811. 5396
5862. -
0.8792 0.3955
0.7731 2231
449.5 2233.
447.5 0.1120- 0.0125
0.1881 --
10 15
6 7 0.6289
76 1
26 55 57
0.4338 57
96 0.0704
0.3814
2 74
8-Feb-11
1-Dec-10 5432.
5871 5312.
= - 4.8633 2227
450 2241.
5960. _____________________________
1.5312 2.3447 448.6 0.6623
-0.3 0.4386
0.09 --
35 559 2.2053
55 79
43 755 26 76 1.4606
0.4593
(126)(167.74) - (483.9)
1 38
9-Feb-11
2-Dec-10 5293.
6023. 5253.
6011. -- 0.5569
0.0355 2244.
454.8 2197.452.9 -- 4.3836
0.1745 1.5624
0.0787
05 = 557 0.7462
0.917 06 8 8 2.0937 96 69
05 0.1884 11 0.4177 28 25
64 37
10-Feb-
3-Dec-10 5246.
6013. 5225.
5992. -0.386- 0.11670.149 2196
453 2210.
444.9 0.6625- 0.4389
3.1972 0.6110 -
11 05
35 88 0.3417 86 55 68
1.7880 97
28 0.2557 58
4 8 5
11-Feb- 5219.
6-Dec-10 6033. 5310
5992. 1.7309 2.9962
- 0.4708 2161.
454 2213. 2.4408
455.9 0.4295 0.18445.9576 4.2249 -
11 65
65 25 0.686159 19
04 15 95 3
15 52
83 0.2947 77
14-Feb- 5340. 5456 2.16755 4.6980 2274 2201. - 10.277 -
1
11
7-Dec-10 25
5995. 5976. 02- 0.0952 63 459.9 1 3.2058
463.3 0.7501 0.5627 18 6.9485-
INFERENCE: 05 55 0.3085 27 5 63 45 0.2314 9
15-Feb- 5467. 5481 0.24239 0.0587 2265. 2222. - 3.6692 -
9
11
8-Dec-10 75
5954. 5903. 3- 0.7250 24 460.0 7 3 1.9155- 0.1286
458.4 28 0.4641
0.3053
2 9
From the above calculation it was inferred that the BETA value of CIPLA is 0. 917, it86
4 7 0.8514 03 5 0.3586 35 is less
16-Feb- 5467. 5481. 0.25787 0.0665 2221. 2218. - 0.0142
6 -
than 1 so it shows
11
9-Dec-10 5924.6 that the
5766.7 share 83price is04
- 7.0904 near to461
risk. 449.1
15 These
5 kinds
0.1193 of- shares
34can
6.6633 be chosen
0.0307
6.8735
25 5 2.6627 2 2.58131 42 7
65
by17-Feb-
the risk accepting
5501. 5546. investors to8get0.6615
0.8133 better return
2202. by2230.
accepting the
1.3055 4 risk for the1.0618
1.7043 study
11
10-Dec-
period. 57617 45 1.6724
5857. 85 95
2.7970 452.5 2 95
449 13- 0.598263 84-
18-Feb-
10 5557. 5458.
35 53- 3.147698 2240. 2221. 0.7734 - 0.6746 1.4572
72 1.2936
11 55 95 1.7741 55 1 7 0.82138 85 831
13-Dec- 5882. 5907. 0.4249 6 0.1806 453.5 451.5 9- 0.2042 -
21-Feb-
10 5456.65 5518. 65 1.136279 1.2910 07 22225 2233. 0.51080.4519 0.2609 95 0.5803
0.1920
11 6 6 39 38 35 019 18 929
22-Feb-
14-Dec- 5504.
5928. 5469.
5944. 0.2597 - 0.4089
0.0674 2222.
455.8 2235.452.4 0.6210- 0.3856
0.5401 --
11
10 4
7 21 0.6394
53 45
72 1 95 0.734934 83
83 0.3971
0.1909
9 7 41
23-Feb-
15-Dec- 5452.
5931. 5437.
5892. - 0.0766
- 0.4290 2220
455 2221.
446.4 0.0743 0.0055
- 3.5310 1.2308 -
11
10 45
15 353 0.2769
0.6550 96
46 655 1.879124 24
95 0.0205 55
42 2 8
24-Feb-
16-Dec- 5408.
5910. 5262.
5948. 0.6463 - 7.2913
0.4177 2206
450 2218. 450 0.58470 0.34190 -
0
11
10
4.7 Calculation 75
of55
BETA of 7 2.7002
75 RANBAXY
02 73
for 06 9 69
the months from 1.10.2010 to 31.3.201155 1.5790
20-Dec- 5926. 5947. 0.3408 5 0.1161 453.4 443.2 - 5.0115 2-
25-Feb-
10 5321.85 5303. 05 22- 0.10816 2200 2221.5 0.9704
2.2386 0.9417 15 0.7629 -
11 BETA CALCULATION
05 55 0.3288
: 64 35 554 82 0.3191 8
21-Dec- 5960. 6000. 0.6752 8 0.4560 440 428.1 - 7.2532 7-
28-Feb-
10 5330. 4 5333. 65 0.0581 9 =0.0033 2222 2208. - 0.3664 2 -0.0352
BETA (N *17∑XY) – (∑X * ∑Y)5/ (N2.6931
* (∑X2) – (∑ 28
X) ) 1.8186
11 15 25 6 83 55 0.60538 01 8
22-Dec- 6019 5984. - 0.3304 435.5 431.2 1- 0.9749 0.5675
1-Mar-11
10 5382 5522.4 2.6068
0.5748 6.7956 48 2205 2198. 0.9873 - 0.0993 01 86-
3 385 02 05 0.31517 46 0.8216
23-Dec- 6005. 5980 126(177.5563)-(-
- 0.1859 434.5 452.9 4.2462
21.99)(-61.04) 9 18.030 6-
3-Mar-11
10 5478. 9 5536. 1.0541
0.4312 1.11117 2198. 21785 - 0.8320
6 72 1.8311 -
45 = 2 _____________________________
34 91 05 0.9121 58 0.96157
24-Dec- 5940. 6011. 1.2011 1.4427 443 473.3 6.8397 7 46.781 8.2153 5
4-Mar-11 5586.
(126)(167.74)-483.9) - (483.9)
10 25 5538.6 28- 0.7215 08 2178 2166. 29- 0.2763 89 0.4465 89
27-Dec- 6013.2 =5998.75 0.8494
1.018 - 05
0.0638 474 55
478.3 0.5257
0.9177 73
0.8422 47 -
10 3 1 0.25271 94 5 1
22 13 0.2319
7-Mar-11 5490. 5463. - 0.2400
7 2166. 2149. - 0.6120 0.38338
28-Dec- 05
6005. 15 0.4899- 0.0242
5996 78 55
475.5 6 0.7823
483.2 1.6298 2.6564 71 34-
10 35 0.15568 41 5 5
63 54 0.2537
8-Mar-11 5466. 5520. 1.00079 1.0014 2224 2162. - 7.7466 -
6
1 8 13 27 1 2.7832 11 2.7852
9-Mar-11 5542. 5531 - 0.0423 2169. 2182. 0.59217 0.3506 -
8
30-Dec- 4
6062. 6101. 0.2056
0.6515 0.4245 07 9
485 75
482.4 93- 0.2764 93 0.1218-
10 35 85 9
63 34 5 0.5257 37 0.3425 1
10-Mar- 5516. 5494. - 0.1547 2178 2187. 0.44767 0.2003 -
7
11
31-Dec- 1
6105. 4
6134. 0.3933
0.4815 0.2319 59 484.8 75 58 98
484.9 0.0309 0.0009 0.0149 0.1761
10 1 5 9
65 04 5 41 57 1
11-Mar-
3-Jan-11 5456.
6177. 5445.
6157. -- 0.0384
0.1032 2190
495 2171.
487.3 -- 0.6793
2.4197 0.1616
0.4998
11 15
45 4560.1961
0.3213 59
53 95 0.8242
1.5555 07
53 33
47
13 6
14-Mar-
4-Jan-11 5436.
6172. 5531.
6146. 1.7474- 3.0535
0.1829 2160.487 2122.
489.9 0.5954 - 3.0778
0.3545 -3.0657-
11 5
75 5 0.4276
35 48 74
15 3 4 1.7543 83 7
99 0.2546
9 9 8
15-Mar- 5420
5-Jan-11 6141. 5449.
6079. 0.5470 0.2992
- 1.0044 2118
491.5 2085.
488.0 - 2.3690
- 0.4927 0.7034 -
11 35 658 1.002248 61
5 4 1.5391
5 0.7019 991 0.842093
INFERENCE: 2 93 1
From the above calculation it was inferred that the BETA value of RANBAXY is 1. 018,-- it is
16-Mar-
6-Jan-11 5475.
6107 5511.
6048. 0.6428 - 0.4132
0.9254 2098
490 2045.
500 2.0408- 6.3217
4.1649
11 95 15
25 0.962011 06
65 25 2.5143 16 01
31 1.6162
1.9632
more than 1 so it shows that the share
1 price is more volatile. These kinds of shares can
29 be
17-Mar-
7-Jan-11 5455.
6030. 5446.
5904. -- 0.0257
4.3857 2080
502.5 2099.
493.3by0.9278 - 0.8609
3.3156 -
chosen by the risk accepting investors to get better return accepting the risk3.8133
for the
11 49 656 0.1603
2.0942 25
36 35 1.820985 7 0.1488
61 46
study period. 91 2
18-Mar- 5475.
10-Jan-11 5901. 5373.
5762. - 3.4466
- 5.5041 2100.
494.4 2039.
477 - 8.2310
- 12.386 8.25685.3262
11 353 7 1.8565
85 2.3460 01
53 05 8 2.8689
3.5194 423 67
82
9 82
21-Mar-
11-Jan-11 5408.
5767. 5364.
5754. -- 0.6617
0.0576 1971
473.0 2043.
475.8 3.6783
0.5813 13.530
0.3379 --
11 75
95 75 0.8135
1 0.2401 77
58 5 5 36
34 15 2.9923
49 0.1395
2 19
22-Mar-
12-Jan-11 5390.
5800. 5413.
5863. 0.4266
1.0896 0.1820
1.1873 2031.
477.3 2039.
485.2 0.4234
1.6656 0.1792
2.7742 0.1806
1.8149
11 85
05 85
25 49
46 29
28 15 755 05
19 72
87 45
35
23-Mar- 5411.
13-Jan-11 5850. 5480.
5751. 1.2723 1.6187
- 2.8545 2025.
481 2024. -
483.1 0.4365 0.1906 0.0002 --
11 4
75 259 1.689514 83
01 1 75 0.01729 99
11 0.0219
0.7376
3 8 93
24-Mar- 5501.
14-Jan-11 5752. 5522.
5654. 0.3744 0.1401
- 2.8760 2020
485.4 2096.
474.8 3.7722 14.230
- 4.7688 3.70341.4124
11 81 4 1.6959
55 23 93
85 2 77
2.1837 08
34 27
54
25-Mar- 4.8 Calculation of BETA
5588. 5654. 1.1738 1.3778 of Dr. REDDY
2081. for
2097. 0.78807 0.6210 0.9250 to
the months from 1.10.2010
31.3.2011 11
17-Jan-11 65
5648. 25 0.1053
5654. 08 24
0.0110 05
475 45
465.4 64- 4.0846 44 35-
8 75 32 95 2.0210 54 0.2128
5 8
BETA5682.
18-Jan-11 CALCULATION :
5724. 0.7303 0.5333 466 484.3 3.9377 15.506 2.8757
55 05 06 47 5 68 02 76
19-Jan-11 5737. 5691. BETA = (N * ∑XY) – (∑X * ∑Y) / (N * (∑X ) – (∑ X) )
- 0.6512 485.3 484.4 - 2
0.0306 2
0.1413
35 05 0.8069 37 5 0.1751 77 44
9 5
20-Jan-11 5656 5711. 0.9830 0.9663 484 488.4 0.9090 0.8264 0.8936
6 27 42 91 46 61
21-Jan-11 5692. 126(76.40)-(-
5696. 0.0781 0.0061 21.99)(-1.78)
483.5 485.3 0.3826 0.1464 0.0299
05 5 79 12 5 27 03 13
= _____________________________
24-Jan-11 5717. 5743. 0.4574 0.2092 489 484.7 - 0.7553 -
1 25 15
(126)(167.74)-483.9) - (483.9) 5 0.8691 71 0.3975
2 4
25-Jan-11 5763. =5687. 0.46 - 1.7343 487.5 473.7 - 8.0132 3.7279
3 4 1.3169 67 2.8307 54 92
5 7
27-Jan-11 5725. 5604. - 4.4665 479.9 461.4 - 14.857 8.1463
3 3 2.1134 71 5 5 3.8545 7 46
3 7
28-Jan-11 5614 5512. - 3.2913 462 448.8 - 8.1632 5.1834
15 1.8142 74 2.8571 65 7
1 4
31-Jan-11 5452. 5505. 0.9784 0.9573 428.0 440.8 2.9903 8.9419 2.9258
55 9 41 47 5 5 05 23 38
3 2 2.1689 45 2.8270 06 87
3 1
2-Feb-11 5469. 5432 - 0.4713 431.7 436.6 1.1233 1.2618 -0.7712
55 0.6865 21 5 35 82
3
3-Feb-11 5430. 5526. 1.7733 3.1447 433.0 437.3 0.9814 0.9631 1.7403
45 75 34 12 5 11 67 69
4-Feb-11 5519. 5395. - 5.0586 432 416.5 - 12.790 8.0437
9 75 2.2491 08 5 3.5763 56 81
3 9
7-Feb-11 5430. 5396 - 0.3955 416 410.1 - 2.0114 0.8919
15 0.6289 1 1.4182 88 44
7
INFERENCE:
8-Feb-11 5432. 5312. - 4.8633 418 396.9 - 25.360 11.105
35 55 2.2053 79 5 5.0358 14 67
1 9
From 5293.
9-Feb-11 the above
5253.calculation- it 0.5569
was inferred that the
395 410BETA value 14.420
3.7974 of Dr. REDDY is 0.46 ,
-2.8339
it is less than 1 so it 05 55 the
shows that 0.7462
share price06is less volatile. The risk
68free investors
77 will prefer
6
to invest10-Feb-
in this security
5246. for5225.
the study period.
-0.386 0.149 404.1 417.1 3.2293 10.429 -
11 05 8 5 99 02 1.2465
6
11-Feb- 5219. 5310 1.7309 2.9962 413.2 418.2 1.2099 1.4639 2.0943
11 65 59 19 5 5 21 1 24
14-Feb- 5340. 5456 2.1675 4.6980 417.5 425.8 1.9880 3.9522 4.3090
11 25 02 63 24 39 45
4.9 Calculation
15-Feb- of BETA
5467. of GLAXO for
5481 0.2423 0.0587the months from
424.1 1.10.2010
423.8 to 31.3.2011
- 0.0034 -
11 75 3 24 5 0.0589 75 0.0142
5 8
16-Feb-
BETA5467. 5481. 0.2578
CALCULATION : 0.0665 420.2 417.3 - 0.4927 -
11 6 7 83 04 5 0.7019 52 0.1810
BETA = (N * ∑XY) – (∑X * ∑Y) / (N * (∑X 6 2) – (∑ X)2) 2
17-Feb- 5501. 5546. 0.8133 0.6615 419 424.4 1.3007 1.6918 1.0579
11 7 45 85 95 5 16 62 83
18-Feb- 5557. 5458. - 3.1476 423.3 426.1 0.6614 0.4375 -
11 55 95 1.7741 55 69 42 1.1735
126(19.75031)-(-
6 21.99)(-5.24) 5
21-Feb- 5456. 5518. 1.1362 1.2910 422.1 430.4 1.9663 3.8665 2.2342
11 6 = 6 _____________________________
39 38 59 66 53
22-Feb- 5504. 5469. - 0.4089 429.6 416.4
(126)(167.74)-483.9) - (483.9) - 9.3696 1.9574
11 4 2 0.6394 45 5 3.0609 41 66
= 0.1149 9
23-Feb- 5452. 5437. - 0.0766 421.5 416.2 - 1.5810 0.3482
11 45 35 0.2769 96 1.2574 9 28
4 1
24-Feb- 5408. 5262. - 7.2913 416 406.8 - 4.8378 5.9392
11 75 7 2.7002 73 5 2.1995 85 61
5 2
25-Feb- 5321. 5303. - 0.1081 412.8 417.5 1.1384 1.2960 -
11 05 55 0.3288 64 5 5 28 18 0.3744
8 1
28-Feb- 5330. 5333. 0.0581 0.0033 419.8 423.5 0.8813 0.7768 0.0512
INFERENCE: 11 15 25 6 83 72 17 6
1-Mar-11 5382 5522. 2.6068 6.7956 426.3 446.2 4.6680 21.790 12.168
3 38 02 74 92 91
3-Mar-11 5478. 5536. 1.0541 1.1111 440 430.4 - 4.7603 -
45 2 3 91 2.1818 31 2.2999
2 2
4-Mar-11 5586. 5538. - 0.7215 434 432.3 - 0.1445 0.3229
2 75 0.8494 05 5 0.3801 4 34
1 8
05 15 0.4899 78 3.0937 44 64
8 4
8-Mar-11 5466. 5520. 1.0007 1.0014 420 424 0.9523 0.9070 0.9530
1 8 13 27 81 29 6
9-Mar-11 5542. 5531 - 0.0423 423.5 415.5 - 3.5675 0.3885
4 0.2056 07 5 5 1.8888 54 01
From the above it was inferred
9 that the BETA value of GLAXO is 0.114 , it is less than
10-Mar-
1 so it shows 5516.
that the 5494.
share price is less- volatile.
0.1547 The 417 417.3
risk free 0.0719
investors 0.0051 to-0.0283
will prefer invest in this
11 1 4 0.3933 59 42 76
security since it is low risk. 9
11-Mar- 5456. 5445. - 0.0384 416.8 420.5 0.8997 0.8094 -
11 15 45 0.1961 59 5 12 82 0.1764
1 4
14-Mar- 5436. 5531. 1.7474 3.0535 417 425.5 2.0503 4.2039 3.5828
11 5 5 48 74 5 6 75 97
15-Mar- 5420 5449. 0.5470 0.2992 416.5 427.6 2.6647 7.1008 1.4577
11 65 48 61 5 5 46 72 44
16-Mar- 5475. 5511. 0.6428 0.4132 426.0 440.1 3.2977 10.875 2.1198
11 95 15
4.10 Calculation 11
of BETA 06
of SUNPHARMA 5 35
for the months 06 1.10.2010
from 2
17-Mar-
to 31.3.2011 5455. 5446. - 0.0257 434.1 435.3 0.2764 0.0764 -
11 4 65 0.1603 25 34 16 0.0443
9 4
18-Mar- 5475. 5373. - 3.4466 438.9 434.7 - 0.9157 1.7765
BETA CALCULATION :
11 35 7 1.8565 01 0.9569 3 57
42
BETA- =0.6617
(N * ∑XY)435.2
– (∑X *444.5
∑Y) / (N2.1252
* (∑X ) 4.5165
– (∑ X)2)
21-Mar- 5408. 5364. -
11 75 75 0.8135 77 5 15 4 1.7288
6
22-Mar- 5390. 5413. 0.4266 0.1820 443.5 450.6 1.6009 2.5628 0.6830
11 85 85 126(169.5118)-(-
49 29 21.99)(52.52) 02 87 23
23-Mar- 5411. 5480. 1.2723 1.6187 453 456.2 0.7174 0.5147 0.9128
11 4 = 25 _____________________________
14 83 5 39 19 08
24-Mar- 5501. 5522. 0.3744 0.1401 455.5 455.1 - 0.0077 -
11 8 4 (126)(167.74)-483.9)
23 93 - (483.9) 0.0878 12 0.0328
= 1.09 2 8
25-Mar- 5588. 5654. 1.1738 1.3778 469.7 458 - 6.2048 -2.9239
11 65 25 08 24 2.4909 4
5
28-Mar- 5645. 5687. 0.7439 0.5535 455.1 442.7 - 7.4222 -2.0269
11 25 25 88 19 5 5 2.7243 28
8
INFERENCE:
From the above calculation it was inferred that the BETA value of SUNPHARMA is 1.
09, it is more than 1 so it shows that the share price is more volatile. These kinds of shares can
be chosen by the risk accepting investors to get better return by accepting the risk for the study
period
4.11 TABLE SHOWING THE RELATIVE STRENGTH INDICATOR OF CIPLA
(Month Wise)
Sl. No. MONTH RSI
1 October 2010 66.7
2 November 2010 33.4
3 December 2010 33.4
4 January 2011 23.1
5 February 2011 23.0
6 March 2011 58.4
SOURCE : Secondary data
4.1 CHART SHOWING THE RELATIVE STRENGTH INDICATOR OF RANBAXY

(Month Wise)
INFERENCE:
From the above chart it was inferred that the RSI value is reached to 23 so, it is decided to
purchase the scrip’s. If it is reached to above 30 and below 80 means it is decided to hold the
securities or apply stop loss procedure. Suppose if it is reached above 80 means it is decided to
sell.
4.12 TABLE SHOWING THE RELATIVE STRENGTH INDICATOR OF RANBAXY (Month Wise)
Sl. No. MONTH RSI
1 October 2010 53.1
4 January 2011 44.5
6 March 2011 52.3
4.2 CHART SHOWING THE RELATIVE STRENGTH INDICATOR OF RANBAXY

(Month Wise)
INFERENCE:
From the above chart it is inferred that the RSI value is reached to 23.1. So it is
decided to purchase the security and here all the other RSI value is above 30 and below 80 so, it
is better to hold the securities. If it reach above 80 in near future it is recommended to sell the
security. .
4.13 TABLE SHOWING THE RELATIVE STRENGTH INDICATOR OF Dr.REDDY(Month Wise)
Sl. No. MONTH RSI
1 October 2010 94.8
4 January 2011 37.5
6 March 2011 54.7
4.3 CHART SHOWING THE RELATIVE STRENGTH INDICATOR OF

Dr.REDDY(Month Wise)
INFERENCE:
From the above chart it is was inferred that the RSI value is reached to 94.8, So it is
decided to sell the scrip’s. The low risk investors can also sell the security since it reached 71.6.
There is no purchase process will be recommended as all the RSI values are above 30 for this
company for the study period.
4.14 TABLE SHOWING THE RELATIVE STRENGTH INDICATOR OF GLAXO(Month Wise)

Sl. No. MONTH RSI
1 October 2010 35.7
4 January 2011 41.2
6 March 2011 33.4
4.4 CHART SHOWING THE RELATIVE STRENGTH INDICATOR OF GLAXO(Month

Wise)
INFERENCE:
From the above chart it is inferred that the RSI value is reached to 78.3, So it is
decided to sell the security and the low risk investors will sell the security when it reached into
71.8.
4.15 TABLE SHOWING THE RELATIVE STRENGTH INDICATOR OF SUNPHARMA (Month

Wise)
Sl. No. MONTH RSI
1 October 2010 60
4 January 2011 28.6
6 March 2011 50.8
4.5 CHART SHOWING THE RELATIVE STRENGTH INDICATOR OF SUNPHARMA
(Month Wise)
INFERENCE:
From the above chart it is inferred that the RSI value is reached to 28.6, So it is
decided to purchase the security. Since, it reached to 94.3 it is decided to sell the security. The
riskless investors can sell their securities when it comes to 68.7.
5.1 SUMMARY OF FINDINGS

Following are the findings of this study.
 The price moving trend of CIPLA is highly fluctuating and it reaches maximum point of 66.7.
The risk free investors can sell their securities during this fluctuating time. Similar
fluctuating trend reaches the minimum point in the month of February (23.0).Hence, It is
said to be a best time to buy the securities since, the RSI Value is below 30. CIPLA is highly
positive correlated with NIFTY index movement and also the BETA value of CIPLA is 0.91 , it
is less than 1 so it shows that the share price is near to risk. These kinds of shares can be
chosen by the risk accepting investors to get better return by accepting the risk for the
study period.
 The price moving trend of RANBAXY is highly fluctuating and it reaches maximum point
(57.9). It will be the period of holding the securities. Similar fluctuating trend reaches the
minimum point (23.1). Hence, It is decided as the best time to buy the securities. RANBAXY
is highly positive correlated with NIFTY index movement and also the BETA value of
RANBAXY is 1.018 , it is more than 1 so it shows that the share price is more volatile in
nature for the study period.
 The price moving trend of Dr. REDDY is highly fluctuating and it reaches maximum point
(94.8).It was the best time to sell the securities. Similar fluctuating trend reaches the
minimum point (33.4). Hence, It is the best time to hold the securities. Dr. REDDY is
moderately positively correlated with NIFTY index movement and also the BETA value of Dr.
REDDY is 0.46, it is less than 1 so it shows that the share price is low risky in nature.
 The price moving trend of GLAXOSMITHKLINE is highly fluctuating and it reaches maximum
point (78.3).It was the best time to hold the securities. Similar fluctuating trend reaches the
minimum point(5.7).Hence, It was the best time to buy the securities. GLAXOSMITHKLINE is
lowly positive correlated with NIFTY index movement and also the BETA value of
GLAXOSMITHKLINE is 0.11, it is less than 1 so it shows that the share price is low risky in
nature.
 The price moving trend of SUNPHARMA is highly fluctuating and it reaches maximum point
(94.3).It was the best time to sell the securities. Similar fluctuating trend reaches the
minimum point in the month of January (28.6).Hence, It was the best time to buy the
securities.. SUNPHARMA is highly positive correlated with NIFTY index movement and also
the BETA value of SUNPHARMA is 1.09, it is more than 1 so it shows that the share price is
more risky in nature.
5.2 SUGGESTIONS
Following are the suggestions of this study.
 From the study, CIPLA, RANBAXY, GLAXOSMITHKLINE and SUNPHARMA’s RSI is

below 30 during certain period. So, it is recommended to BUY these securities. Whereas Dr.
REDDY and SUNPHARMA’s RSI are above 80 during certain periods it would be suggested to
SELL these securities. And the risk free investors will recommended to sell their securities
as it reached above 65 and below 80.
 With regard to the relationship between NIFTY index and selected Pharmaceutical
companies closing price the highly positive correlation exist in CIPLA, RANBAXY and
SUNPHARMA. So these companies share price has moving along with the NIFTY Index. So
investors can easily take decisions based on the Index movement. Whereas, Dr. REDDY is
moderately correlated with NIFTY Index. So the investors should partially rely on the Index
movements for their investment decisions on these companies. Since GLAXOSMITHKLINE
has low correlation with Index, the investors should not rely on the Index movements for
their investment decisions on these companies.
 With regard to risk level of selected Pharmaceutical companies RANBAXY and

SUNPHARMA have Beta value of more than 1 so it indicates that these companies will have
more riskier followed by CIPLA, Dr. REDDY and GLAXOSMITHKLINE.
5.3 CONCLUSION
From this study, it has been observed that the risk level of RANBAXY and
SUNPHARMA are higher when compared with other selected companies. CIPLA, RANBAXY and
SUNPHARMA’S companies share price’s are moving in line with NIFTY Index. In addition the study
shows that share price of CIPLA, RANBAXY, GLAXOSMITHKLINE and SUNPHARMA are in upward
trend.
The investors should keenly watch the situations like market price, economy, production
and supply, returns, and the risk involved in a securities before taking decision on a particular
Company. This study will help the investors to know about the equity share prices movement and
current situation of pharmaceutical companies.
In addition, they can able to know the importance of pharmaceutical companies since, it is
projected to show double digit growth in near future owing to rise in Indian Pharmaceutical
outsourcing and increase in investment in R & D. Thereby the investors can gain better return.
BIBILIOGRAPHY
REFERENCES
1. Avadhani V.A., “Investment Management”, Himalaya Publishing House, NewDelhi, 2 nd

Edition, 1999.
2. Bhalla V.K., “Investment Management”, Security Analysis and Portfolio
Management, S.Chand & Co Ltd, New Delhi, 2nd Edition, 1997.
3. Gupta.S.P., “Statistical Methods”, Sultan Chand & Co, 2nd Edition, 1998.
4. Kothari.C.R. “Research Methods and Techniques”, Wishwa Prakashan Publishing, New

Delhi, 1990.
5. Prasanna Chandra, “Financial Management-Theory and Practice”, Tata Mc Graw Hill,

International Edition, 5th edition, 2000.
WEBSITES:
 www.nseindia.com
 www.moneycontrol.com
 www.investopedia.com
 www.scrind.com

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1.

1 GENERAL SCENERIO OF INDUSTRY

1.1.1 STOCK EXCHANGE

The stock exchange or secondary market is a highly organized

Of all the modern service institutions, stock exchange plays a crucial

These investors could be expected to participate actively only if

1.1.2 HISTORY OF THE INDIAN STOCK MARKET – THE ORIGIN :

1830's Business on corporate stocks and shares in Bank and Cotton

1840's Recognition from banks and merchants to about half a dozen

1850's Rapid development of commercial enterprise saw brokerage

1860's The number of brokers increased to 60.

1862-63 The number of brokers increased to about 200 to 250.

1.1.3 PRE-INDEPENDENCE SCENARIO- ESTABLISHMENT OF

1874 With the rapidly developing share trading business, brokers

1880's Development of cotton mills industry and set up of many

1894 Establishment of "The Ahmedabad Share and Stock Brokers'

1880 - Sharp increase in share prices of jute industries in 1870's was

1908 "The Calcutta Stock Exchange Association" was formed.

1920 Madras witnessed boom and business at "The Madras Stock

1923 When recession followed, number of brokers came down to 3

1934 Establishment of the Lahore Stock Exchange.

1937 Re-organisation and set up of the Madras Stock Exchange

1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock

1944 Establishment of "The Hyderabad Stock Exchange Limited".

1.1.4 POST – INDEPENDENCE SCENERIO :

Many more stock exchanges were established during 1980's,

• Cochin Stock Exchange (1980)

1.1.5 TRADING PATTERN OF THE INDIAN STOCK MARKET :

Indian Stock Exchanges allow trading of securities of only those

1.1.6 NATIONAL STOCK EXCHANGE

In order to lift the Indian stock market trading system on par

1. Wholesale debt market 2. Capital market

1. Fully automated screen-based trading mechanism.

Advantages of trading at NSE

1. Integrated network for trading in stock market of India.

INDIAN PHARMACEUTICAL INDUSTRY

The Indian Pharmaceutical Industry today is in the front rank of

INDIAN PHARMACEUTICAL SECTOR : CURRENT SCENERIO :

According to the Economic Survey (2006-07), the

Pharmaceutical industry accounts for about 2.91% of

From Rs. 50 billion in 1990 it has grown to Rs.550

INDIAN PHARMACEUTICAL SECTOR : FURURE PROSPECTS

Due to increase in the population of high income

There was another report by RNCOS titled "Booming

ABOUT ANGEL BROKING :

Angel Booking's tryst with excellence in customer relations began

It has memberships on BSE, NSE and the leading commodity

ANGEL GROUP COMPANIES :

Angel Broking Ltd. Member on the BSE and Depository

• Nation- wide network of 21 regional hubs

• Presence 124 cities

• 6800 + sub brokers & business associates

• 5.9 lakh + clients

Mr. Dinesh Kumar Founder chairman and Managing Director

Mr. Lalit Thakkar Director - Research

Mr. Amit Majumdar Executive Director – Strategy and Finance

Mr. Rajiv Phadke Executive Director – HR and Corp.

Mr. Vinay Agarwal Executive Director – Equity Broking

Mr. Nikhil Daxini Executive Director – Sales and Broking

Mr. Hitungshu Executive Director – Distribution and Wealth

Mr. Mudit Executive Director - Operations

• August, 2008 Crossed 500000 trading accounts

▼ Pyramid formation symbolises Steady Growth