CHAPTER-I

INTRODUCTION

1
 INTRODUCTION

In financial markets, stock is the particular capital raised by the corporation with the issuance
plus distribution of shares. The person or organization which usually holds shares of shares is
called a aktionär. The aggregate value concerning a corporation's issued provides is its market
improved. When one buys the new share of any kind of company he or the girl turns into a
shareholder inside that will company. Shares may furthermore be known as Equities. Equities
have the potential customer to improve inside value because time passes. It similarly provides
the portfolio with the growth necessary to achieve the long-term investment focuses on. Research
have proved associated with which the equities possess perform much better than the vast
majority of sorts of buys in the long manifestation. Equities are considered usually the most
challenging in addition the gratifying, when in comparison to additional investment choices.
Research scientific studies have proved that purchases in some shares together with a longer
tenure regarding investment have yielded significantly superior returns than every other
investment. However, this really does not mean all value investments would guarantee related
high returns. Equities usually are high-risk investments. One requires to study them thoroughly
before investing. Since 1990 till date, Indian currency markets has returned about 17% to
investors on a great average with regards to increase inside share prices or money appreciation
annually. Besides of which on average stocks have got paid 1. 5 per-cent dividend annually.
When compared with many other forms of purchases, buying equity shares gives the highest rate
regarding return, if invested above a longer duration.
Complex technical analysis
A method of assessing securities by relying about the assumption that industry data, such as chart
of price, volume, in addition to open interest, can aid predict future (usually short-term) market
trends. Unlike essential analysis, the intrinsic benefit of the safety is not necessarily considered.
Technical analysts assume that they can accurately anticipate the future price regarding a stock
searching from its historical prices as well as other trading variables. Technical research assumes
that market mindset influences trading in a new way that permits guessing when a stock may fall
or rise. For that purpose, many technical analysts usually are also market timers, who else assume
that technical analysis could be applied merely since easily to typically the industry as a complete
since to an personal inventory.
Charts use for research for Bar charts, range charts Equity
Analysis.
You could find two broad methods within equity analysis one is normally A procedure for
analyzing securities by simply keeping track of on the assumption associated with which market

2
data, this kind of since charts of cost, volume level, and open up interest, could help forecast
future (usually short-term) marketplace trends. As opposed in order to fundamental analysis, the
innate value of the safety is not really considered. Technical experts assume that they can
effectively predict the long run price regarding a stock by seeking at its historical prices plus
other trading variables. Specialized analysis assumes that marketplace psychology influences
trading within a way that allows predicting each time a stock will certainly rise or fall. Because
of this, many technical analysts will also be market timers, who think that technical analysis can
become applied just like easily in order to the market in general because to an individual share.
A method of security valuation which usually involves examining the carrier's financials and
operations, especiallysales, earnings, growthpotential, assets, financial debt, management,
products, and competitors. Fundamental analysis takes in to consideration only those factors that
are directly associated to the organization itself, rather than the overall

state associated with the market or technical analysis data

Want of the study

 To analyze current growth tendency of scripts of picked banking Firms in value market.

 To evaluate Investments using Technical analysis

 To study the factors impacting Equity share price habits

 To study about Buyer and Dealers awareness regarding Equity analysis

 Equity Research or investment helps buyers in effective and successful management of

their investment decision to achieve this aim.

3
Objective of project:
 To analyze current progress trend of scripts regarding banking sector in value market.
Using the study regarding Indian economy.
 Fundamental in addition to technical analysis of major companies of banking industry;
we will try to be able to forecast the future progress trend of such companies inside
equity market.
 To guideline its esteemed customers in order to manage their investment profile, in turn,
to generate the best out associated with the stock market.
 Speculating the future growth pattern of leading scripts. Within this project, we made
the decision to follow E-I-C (Economy-Industry-Company) methodology to analyze
present and expected future development trend of the pre-decided scripts.

SCOPE

• The research about Equity analysis addresses these accepts

• To evaluate the growth of Various sorts of equity opportunities

• To give investor awareness regarding Need for Equity evaluation

• Managing various types associated with equity opportunities

• To handle technical and fundamental evaluation

4
Research methodology:-

METHODOLOGY

Towards the accomplishment of the above objectives, information, information would be

obtained from primary as well as secondary data sources.

Sample design:-

4 companies

Period and place of study:-banks and stock broking companies ,port folio management services
and

5
 Source of data:-

Data Sources

Primary Sources Secondary Sources

Observation

Interview
1.
Internal Source External Source
2.
Mail Questionnaire
3.

Private Documents
1. Life History Published Records Unpublished

Journals Records

2. Newspapers & Magazines

3. Radio, T.V

Secondary source:-Share Price of banks ,open price ,high/Low price ,closing price NSE

Charts Use for data analysis

6
LIMITATIONS OF STUDY

To understand the overall working of share market, the period of 45 days is not enough.

Moreover, very few investor and agents have a detail understanding of the study.

The study was conducted within Indian securities only.

The data given by the trader and the agents can not be held true because 100% correct.

The research was conducted to realize regarding Risk involved within broking firm and
traders, which is a section of the equity share market.
The research was mainly concentrated upon volatility risk involved within share broking firms.

7
 CHAPTER-2
REVIEW OF LITERATURE

8
Investment success is pretty much a matter of careful selection and timing of stock purchases
coupled with perfect matching to an individual’s risk tolerance. In order to perform selection,
timing and coordinating actions an investor should conduct deep security evaluation. Investors
purchase equity stocks with two basic goals; one To make funds profits selling off shares in
higher prices.
2. In order to earn dividend income.

These types of two factors are afflicted by a host of things. An investor has in order to carefully
understand and evaluate all these factors. Presently there are basically two methods to study
security prices plus valuation i. e. basic analysis and technical evaluation
The cost of common stock will be determined in large determine by the performance associated
with the firm that released the stock. If the particular company is healthy plus can demonstrate
strength plus growth, the cost of the share will increase. When ideals increase then prices adhere
to and returns with an expense will increase. However, simply to keep the savvy trader on the
toes, the blend is complicated by the particular risk factors involved. Basic analysis examines all
of the sizes of risk exposure plus the probabilities of come back, and merges them along with
broader economical analysis plus greater industry analysis in order to formulate the valuation
associated with a stock.

FUNDAMENTAL EVALUATION

Fundamental analysis is the method of forecasting the near future price movements of the
financial instrument based upon economic, political, environmental and other relevant factors
and statistics that will affect the basic supply and demand of whatever underlies the financial
instrument. It is the study of economic, industry and company conditions in an effort to determine
the value of a company’s stock. Fundamental analysis typically focuses on key statistics in
company’s financial statements to determine if the stock price is properly valued. The term
simply refers to the analysis of the financial well-being of a financial entity as opposed to only
its price movements.
Basic analysis is the foundation of investing. The fundamental philosophy underlying the basic
analysis is that in the event that an investor invests re. one in buying a discuss of the company,
how a lot expected returns from this particular investment he has. The basic analysis is to assess
the intrinsic value regarding a security. It demands that no person should obtain or sell a reveal
on the basis regarding tips and rumors. Typically the fundamental approach calls after the
investors to help to make his buy or offer decision on the schedule of reveal analysis regarding

9
the info on the business, concerning the industry, and typically the economy. It is likewise known
as “top-down approach”. This approach attempts to be able to study the monetary circumstance,
industry position and typically the company expectations and is particularly identified as
“economic-industry-company approach (EIC approach)”. Thus the EIC approach involves three
steps:
1 . Economic analysis

2. Industry analysis

3. Company analysis

COMPANY

ANALYSIS

INDUSTRY ANALYSIS

ECONOMIC ANALYSIS

ECONOMIC ANALYSIS

The commonly analyzed macro financial factors usually are as follows:

Gross Home-based Product (GDP): GDP signifies the rate of progress of our economy. It
symbolizes the aggregate associated with typically the goods and services manufactured in the
economy. It involves personal consumption expenditure, low private domestic investment in

10
addition to government expenditure on items and services and web exports of goods in addition
to services. The growth level of economy points out there the prospects for typically the
professional sector plus the go back investors can expect coming from investment in shares. The
greater growth rate is even more favorable to the inventory market.
Savings and investment decision: It is clear of which growth requires investment which often
requires substantial amount regarding domestic savings.

Inflation:

Together with the growth of GDP, when the inflation rate likewise increases, then a real progress
would be almost no. Typically the effects of inflation about capital markets are many. An increase
in typically the expected rate of pumpiing is expected to result in a nominal rise inside interest
rates. Also, that increases uncertainty of upcoming business and investment selections. As
inflation increases, that results in extra charges to businesses, thereby contracting their profit
margins in addition to leading to real reduces in profitability.
Interest rates: The particular interest price impacts the cost of funding to the companies. A
decrease in attention rate implies less expensive associated with finance for businesses plus
more profitability. More cash can be obtained at a reduce interest rate for that agents who are
doing company with borrowed money. Accessibility of cheap funds stimulates speculation and
within the particular price of shares.

11

Tax structure: Every year within March, the business local community eagerly

awaits the Government’s announcement about the tax plan. Concessions and incentives
provided to a particular business motivate investment in that will particular industry.
Tax relief’s provided to savings motivate cost savings. The type of tax permission has
influence on the particular profitability of typically the particular industries.
• Infrastructure facilities: System facilities are necessary for typically the growth of
professional in addition to agricultural sector. A large network of communication
method is absolutely essential for typically the growth of the overall economy. Regular
supply of strength without the power cut would certainlyBoost the production. Bank
and financial sectors likewise should be sound adequate to provide satisfactory help
for the industry. Good system facilities affect the inventory market favorably.


• INDUSTRY RESEARCH

• An industry is a new selection of organizations that contain related technological

structure of creation and produce similar goods and Industry analysis is usually a type
of enterprise research that focuses about the status of a great industry or an professional
sector (a broad market classification, like "manufacturing"). No matter of specific
monetary scenarios, some industries could possibly be predicted to perform better, and
promote prices in these industrial sectors might not exactly decline as very much as in
other industrial sectors. This identification of monetary and industry specific elements
influencing share prices may help investors to identify typically the shares that fit
personal anticipations
Industry Life Routine: The life cycle principle is normally attributed to Julius
Grodensky. Lifespan cycle regarding the industry is segregated into four well identified
stages.
• Pioneering stage: Typically the possible demand for the merchandise is promising
in this specific stage and the technological innovation of the system is reduced. The
demand for typically the product attracts many makers to generate the particular

12

merchandise. There would be extreme competition and only fittest companies survive
this period. The producers try in order to develop brand, differentiate the particular
product and create an item image. In this scenario, it is difficult to select businesses for
investment since the success rate is unknown.
• • Rapid growth stage: This phase starts with the appearance of making it through
companies from the groundbreaking stage. The companies which have withstood the
competition develop strongly in market discuss and financial perfor¬mance. The
particular technology of the manufacturing would have improved producing in
inexpensive of manufacturing and top quality products. The particular companies have
stable development rate in this phase and they declare dividend towards the
share¬holders. It will be recommended to invest in the stocks of these companies.
• • Maturity and stabilization stage: the particular growth rate tends in order to growth
would become more or less the same to the commercial development rate or maybe the
gross household product growth rate. Signs and symptoms of obsolescence may appear
within the technology. To maintain going, technological innova¬tions within the
production process plus products should be launched. The investors have in order to
closely monitor the occasions that take place in the maturity period of the industry.
• Decline stage: demand for typically the particular product plus the revenue of the
companies in the marketplace decline. It is far better to avoid buying typically the
shares of the reduced growth industry even inside the boom period. Investment decision
inside the shares of these kind of companies causes erosion regarding capital.
• Growth of typically the industry: The historical efficiency of the industry with
regards to growth and profitability ought to be analyzed. The past variability inturn and
growth inside a reaction to macro economical elements offer an insight into typically
the future.
• Nature of opposition: Nature regarding competition is often an vital factor of which
establishes the demand about the certain product, their profitability as well as the price
about the involved company scrips. The companies' ability to withstand typically the
local and also the multinational opposition counts much. If also many companies are
found in the organized sector, your competitors would be severe. Typically the
competi¬tion would cause a new decline in the value of the product. Typically the
investor before investing inside the scrip of a new company should analyze typically

13

the market share in the certain company's product and may examine it with the five
companies.
• SWOT analysis: SWOT analysis signifies the strength, weakness, chance and threat
for a good industry. Every investor should execute a SWOT research for your chosen
industry. Consider for instance, embrace requirement for the industry’s merchandise
becomes its strength, occurrence of numerous players inside the market, i. at the.
competition becomes the risk to a particular business. The progress in Ur & D in of
which industry is an possibility and entry of multinationals in the industry is actually a
threat. In this approach the factors are to be able to be arranged and assessed.

14
Within the company analysis the trader assimilates the several pieces of information related in
order to the company and examines the present and long term values of the share. The risk and
come back associated with the buy of the stock will be analyzed to consider better expense
decisions. The current and long term values are influenced simply by a number of aspects.

• Growth of sales: Typically the rapid growth in revenue would keep the aktionär in an
improved position as compared to one with stagnant progress rate. Investors generally favor size
and growth inside sales for the reason that larger sizing companies may be in a position to
withstand the enterprise cycle instead of the business of smaller size.

• Stability of sales: If a new firm has stable revenue revenue, it will have got more stable
earnings. Typically the along with the market reveal indicates the declining tendency of
company, regardless if typically the sales are stable. Consequently the stability of revenue should
be compared together with its market share in addition to the competitor’s business.

Revenue of the company: Revenue alone do not improve the earnings but the charges and
expenses of typically the company also influence typically the earnings. Further, earnings tend
to not always increase withincrease within sales. The company’s product sales might have
increased yet its earnings per discuss may decline due in order to rise in costs. Therefore, the
investor should not really only be based upon the product sales, but should analyze the particular
earnings from the company.

Monetary analysis: The very best source associated with financial details about a business will
be its own financial claims. This is a main source of information with regard to evaluating the
investment potential customers in the particular company’s stock. Financial statement evaluation
is the study associated with a company’s financial declaration from various viewpoints. The
particular statement provides the historical plus current details about the company’s operations.
Historical financial declaration helps to predict the particular future and the present information
aids to evaluate the present status associated with the company. The 2 main statements used
within the analysis are Stability sheet and Profit plus Loss Account.

The total amount page is one regarding the particular financial assertions that businesses prepare
each and every year for their very own share¬holders. It is definitely just like a financial snapshot,
typically the carrier's finances at a new instant in time. It will probably be prepared at the 13
15
months end, listing typically the carrier's current assets in addition to financial obligations. It can
help to be able to research the principle city construction of the particular business. It's prudent
for the certain investor in order to avoid a enterprise with excessive debt factor in its capital
construction. From your balance linen, fluid position from typically the company may also end
up being assessed using the details when current assets in addition to present liabilities.

Proportion analysis: Percentage is a new relationship among two statistics expressed

mathematically. Financial percentages provide numerical relationship in between two related
financial info. Financial proportions are computed through the particular balance linen and profit
plus damage account. The partnership could be either indicated since a percent or also being a
quotient. Proportions sum up your data with regard to be able to easy understanding, comparison
as well as interpretations.
Proportions for investment purposes could be classified into profitability proportions, turnover
ratios, and influence ratios. Profitability ratios would be the most popular ratios given that present
profit overall performance and use this info to forecast the long term strength of the organization.
The most often used earnings ratios are return about assets, price earnings multiplier, price to
book benefit, price to cashflow, in addition to price to sales, gross yield, return on value, present
value of funds flows, and profit margins.

16
 CHAPTER-3

INDUSTRY PROFILE

17
Shiram Insight Logo:

Shiram Insight slogan

18
Regarding Shiram Insight

They has additionally made opportunities within Manufacturing, Value Additional

Services, Task Development, Architectural Services, Pharmaceutical drugs, Precision

machined and Parts, Press Passes away and Page Metal Rubber stamping, Packaging,
Info Technology, House Development and so forth.

Genesis of the Shriram phenomenon

The particular 30, 500 Cr Shriram Group experienced its simple beginnings within the
Chit Fund business more compared to three decadesago. R Thyagarajan, AVS Raja and
In order to Jayaraman were the “three musketeers” who ventured within to these
businesses. Not really numerous in the monetary services business thought in that period,
this little Chit Money business within Chennai might indeed become the basis for the
monetary conglomerate that Shriram will be nowadays.

Vision

To be the particular premier organization operating in your area & internationality that
offers the complete array of economic services to all sectors under one roof.

Quest:

To produce & deliver typically the most ground breaking products, control customer
experience, deliver top quality services that contributes to be able to brand strength,
establishes a new competitive advantage and boosts profitability, thus providing benefit to
the stakeholders in the bank

19
Objective

Shriram Group’s businesses strive to assist the major number regarding common people.
To understand: Enterprise Finance, Retail Inventory Broking, Life
Insurance, Chit Funds and Distribution regarding Investment & Insurance Goods. Our
foray into Non-Life (General) Insurance is once more a strong expression regarding this
commitment.

20
Commercial Investments

The Group offers also made investments within Manufacturing, Value Added Solutions,
Project Development, Engineering Solutions, Pharmaceuticals, Machined and Car
Components, Press Dies and Sheet Metal Stamping, Product packaging, Information
Technology, Property Advancement etc .

Non-Finanical service: --

Shriram Group has usually encouraged entrepreneurship by showing continuous apetite

for trading in start-up manufacturing company.

Our Expense

They has also made purchases in Manufacturing, Value Extra Solutions, Project

Development, Executive Solutions, Pharmaceuticals, Machined as well as Car

Components, Press Drops dead and Sheet Metal Rubber stamping, Product packaging,
Technology, Home Development and so about.

21
About Founder

Mr. L Thyagarajan, Founder

Chairman associated with the Shriram Group associated with Companies - Promoted the
particular Shriram Group Companies within 1974. Today the group offers over 15, 000
workers and operating through seven hundred places and manage money of over 15, 500
Crores in the company of financial services including existence insurance and general
insurance coverage.

• Masters in Math

• Masters in Numerical Statistics from Indian Statistical Institute

• Associate associated with Chartered Insurance Institute (A. C. I. 1), Greater london

• Visiting faculty associated with Asian Institute of Insurance coverage, Philippines on

Consequential Reduction Insurance.

By inculcating the particular philosophy of “putting persons first”, he's transformed

typically the Shriram Group into India’s Premier Networked Financial Providers
Supermarket Chain. The Community Shriram comprises over 600 Branches and Service
Centres, served by greater than 6000 employees and 60, 1000 agents committed to
guaranteeing world-class customer service. Typically the Group’s aggregate turnover is
greater than Rs. 5000 crores.

22
Services offered from Shiram Insight

Capital
market

Mutual
Ipo
Funds

Commodites
Derivatives

23
 CHAPTER-4

DATA ANSLYSIS AND INTERPRETATION

24
CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK (BETA) FOR
THE PERIOD OF 2017-2019

Date Open High Low Close RR

Jan-17 816.7 944 812 903 10.56692

Feb-17 850 877 815 856.9 0.811765

Mar-17 860.15 1,094.00 852.1 1,051.40 22.23449

Apr-17 1,060.00 1,168.70 1,022.60 1,105.85 4.325472

May-17 1,108.95 1,152.00 1,004.00 1,106.90 -0.18486

Jun-17 1,119.80 1,274.75 1,100.00 1,166.55 4.174853

Jul-17 1,160.00 1,317.20 1,157.95 1,290.75 11.27155

Aug-17 1,320.00 1,346.70 1,161.55 1,228.30 -6.94697

Sep-17 1,230.00 1,274.00 1,022.00 1,096.80 -10.8293

Oct-17 1,094.60 1,252.00 1,076.40 1,247.85 14.00055

Nov-17 1,294.00 1,298.70 1,115.50 1,121.55 -13.3269

Dec-17 1,122.10 1,228.90 1,114.25 1,205.50 7.432493

Jan-18 1,205.95 1,279.00 1,175.30 1,214.95 0.7463

Feb-18 1,220.00 1,357.15 1,145.00 1,335.70 9.483607

Mar-18 1,339.00 1,350.00 1,190.10 1,290.45 -3.62584

Apr-18 1,282.00 1,520.00 1,282.00 1,402.80 9.422777

May-18 1,412.80 1,412.80 1,077.55 1,219.25 -13.6997

Jun-18 1,209.25 1,250.00 1,070.10 1,088.50 -9.98553

25
 Jul-18 1,093.00 1,138.85 890.55 929.7 -14.9405

Aug-18 935 1,106.00 919 928.85 -0.65775

Sep-18 934.8 956.1 816.5 826.1 -11.6282

Oct-18 812 901.6 691 888.9 9.470443

Nov-18 890 1,079.00 889.15 1,038.25 16.6573

Dec-18 1,056.00 1,188.00 956.35 1,165.05 10.3267

Jan-19 1,174.95 1,198.90 1,046.65 1,187.80 1.093664

Feb-19 1,185.00 1,217.00 1,078.30 1,125.35 -5.03376

Mar-19 1,113.95 1,462.00 1,093.15 1,428.15 28.20593

Apr-19 1,426.25 1,650.00 1,361.35 1,517.00 6.36284

May-19 1,512.95 1,716.00 1,413.70 1,676.30 10.79679

Jun-19 1,696.10 1,711.00 1,531.05 1,557.95 -8.14516

Jul-19 1,560.50 1,661.00 1,264.85 1,557.20 -0.21147

Aug-19 1,551.00 1,696.10 1,411.65 1,690.45 8.990974

Sep-19 1,688.00 1,898.85 1,597.95 1,889.65 11.94609

Oct-19 1,878.00 1,888.85 1,377.95 1,456.85 -22.4255

Nov-19 1,472.30 1,541.75 1,357.25 1,444.20 -1.90858

Dec-19 1,458.00 1,461.90 1,277.10 1,333.55 -8.53567

AVG 1.839886

Var 122.3176

SD 11.05973

Co var -4.62196

26
 Market Varience 12.12865

market risk -0.38108

INTERPRETATION:- from the above analysis average market returns is 1.83 , Variance
122.44 , Risk SD 11.59 , co variance with the market is -4.62 , Market Variance 12.13 , the
calculated no market risk is -0.38.

27
TCS CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK (BETA)
FOR THE PERIOD OF 2017-2019

Date Open High Low Close RR

Jan- 116 140 114.95 144.95 16.33621

17
Feb- 146.7 152.4 144.4 150.45 10.05852
17
Mar- 154.9 155.4 149.15 148.65 -4.03486
17
Apr- 148.6 197.45 146.2 186 25.16824
17
May- 186.8 216 170.2 179.55 -3.88116
17
Jun- 179.95 204.8 171.4 190.7 5.973882
17
Jul- 191 207.2 189.75 194.45 1.230366
17
Aug- 194.5 196.4 154 185.05 -4.85861
17
Sep- 184.55 198.6 158.2 164.4 -10.9726
17
Oct- 168.2 202.7 166 201.45 19.70868
17
Nov- 204 244.9 194.15 244.25 14.90148
17
Dec- 247 266.8 220.95 259.45 9.43038
17
Jan- 259.45 274.85 245.55 250.1 -3.60378
18
Feb- 251.7 254.7 204.5 226.25 -10.1112
18

28
Mar- 225.55 229.7 198.8 201.25 -10.7737
18
Apr- 204.7 226.15 197.6 224.1 9.52381
18
May- 222.8 224.4 184.25 209.9 -5.78995
18
Jun- 210.45 210.95 184.8 188.8 -10.2875
18
Jul- 189 198.85 168 196.4 3.862434
18
Aug- 195.9 224.5 184.05 220.8 12.71057
18
Sep- 214.1 216.55 159.6 162.55 -23.7213
18
Oct- 159 166.5 142 164.75 3.616352
18
Nov- 165.45 184.5 161.75 178.1 7.645814
18
Dec- 179 194.7 164 177.55 -0.81006
18
Jan- 177.1 187.75 144.1 164.85 -6.917
19
Feb- 164.95 181.05 152.05 164.7 -0.15156
19
Mar- 166 206.4 165.2 202.45 21.95783
19
Apr- 204 209.65 167.05 172.75 -14.9015
19
May- 171.05 200.2 158.15 191.2 11.78018
19

29
Jun- 191 202.65 170 188.55 -1.28272
19
Jul- 189.7 196.9 169.75 178.15 -6.08856
19
Aug- 176.95 181.25 146.7 168.15 -4.97316
19
Sep- 164.5 174.15 148.2 155.6 -5.41033
19
Oct- 156 190.6 142.55 184.4 17.5
19
Nov- 184.4 226.6 182.05 219.7 19.14317
19
Dec- 219 245.15 214.6 240.9 5.43379
19
AVG 2.428117

Var 129.4368

SD 11.37703

Co var -0.05207

Market Varience 12.12865

market risk -0.00429

30
INTERPRETATION:- from the above analysis average market returns is 2.43 , Variance
129.44 , Risk SD 11.38 , co variance with the market is -0.05 , Market Variance 12.13 , the
calculated no market risk.

31
Wipro CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK (BETA)
FOR THE PERIOD OF 2017-2019

NMDC

Date Open High Low Close RR

Jan-17 123.9 149.05 122.6 143.85 16.10169

Feb-17 143.65 151 132.25 150.25 4.594501

Mar-17 151 152.4 131.7 133.1 -11.8543

Apr-17 133.2 137.5 125 127.5 -4.27928

May-17 127.5 130.3 109.25 110.65 -13.2157

Jun-17 111 118.25 102.8 108.25 -2.47748

Jul-17 108.4 128.4 108.4 126.75 16.92804

Aug-17 128 130.4 116.3 126.65 -1.05469

Sep-17 127.1 138.5 116 117.75 -7.35641

Oct-17 118.7 131.8 117.1 128.15 7.961247

Nov-17 128.25 134.4 121.8 127.6 -0.50682

Dec-17 127.8 140.95 124.1 137.8 7.824726

Jan-18 137.9 162.7 137.45 140.3 1.740392

Feb-18 140.05 143.7 124 129.35 -7.64013

Mar-18 129 132.8 115.85 118.55 -8.10078

Apr-18 118.5 126.45 115.55 125 5.485232

May-18 125 125.8 111.45 117.45 -6.04

32
Jun-18 117 119.6 102.5 108.1 -7.60684

Jul-18 109 109 93.5 105.2 -3.48624

Aug-18 105.5 115.25 100.2 111.5 5.687204

Sep-18 112 124.4 108.75 113.2 1.071429

Oct-18 113.2 117.5 104.05 109.15 -3.57774

Nov-18 109.45 118.1 92.85 95.85 -12.4258

Dec-18 96.5 98.2 88.6 96.85 0.362694

Jan-19 96.9 99.5 89.25 96.9 0.373393

Feb-19 97.65 101.6 91.1 100.7 3.1234

Mar-19 101.9 118.4 100.6 104.45 2.502453

Apr-19 106 108.45 99.05 100.45 -5.23585

May-19 100.15 106.5 90 101.3 1.148278

Jun-19 100.55 114.4 100.15 112.95 12.33217

Jul-19 114 120.55 105.4 108.7 -4.64912

Aug-19 108.4 110.6 74.8 83.15 -23.2934

Sep-19 82.5 96.5 78.6 88.7 7.515152

Oct-19 88.7 114.35 86.8 112.6 26.94476

Nov-19 112.6 114.95 97.6 102.55 -8.9254

Dec-19 102.25 130.8 101.65 128.9 26.06357

AVG 0.43503

Var 106.8548

SD 10.33706

33
 Co 4.084778
var
Market Varience 12.12865

market risk 0.336787

34
INTERPRETATION:- from the above analysis AVG 0.43503 , Variance 106.8548 , SD
10.33706 , Co var 4.084778 , Market Variance 12.12865 , the calculated market risk is
0.336787 .

35
Infosys LTD CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK
(BETA) FOR THE PERIOD OF 2017-2019

Date Open High Low Close RR

Jan-17 157.77 175.29 154.87 168.49 6.794701

Feb-17 168.5 190.63 165.85 187.07 11.02077

Mar-17 188 193.82 169.59 188.72 0.382979

Apr-17 188.92 198 175.58 183.95 -2.63074

May-17 185.83 186.07 147.52 158.11 -14.9169

Jun-17 158.17 175.42 158 165.53 4.653221

Jul-17 165 219.43 158.12 192.35 16.57576

Aug-17 185.25 193.35 159.03 168.5 -9.04184

Sep-17 169.5 184.93 164 166.07 -2.0236

Oct-17 167.5 194.25 166.85 179.6 7.223881

Nov-17 179.05 220.28 178.6 216.07 20.67579

Dec-17 222.5 274.35 218.68 268.65 20.74157

Jan-18 270.07 328.75 262.62 307.45 13.84086

Feb-18 308 322.5 276.6 315.02 2.279221

Mar-18 315.5 321.85 280.55 296.95 -5.87956

Apr-18 299.95 338.95 294 333.8 11.28521

May-18 334 341.5 306.32 332.7 -0.38922

Jun-18 333.15 348.3 287.82 309.77 -7.01786

36
 Jul-18 309.5 320.32 271.65 293.2 -5.26656

Aug-18 293.4 315 280.07 312 6.339468

Sep-18 313.4 359 294.6 345.68 10.29994

Oct-18 345 346.18 289.38 329.5 -4.49275

Nov-18 327.52 333.48 295.32 312.18 -4.68368

Dec-18 316 329 300.27 314.52 -0.46835

Jan-19 315.73 341.23 303.62 324.15 2.666836

Feb-19 320.5 334.75 302 310.73 -3.04836

Mar-19 312 320.98 296.05 305.27 -2.15705

Apr-19 308 318.38 292.7 296.75 -3.6526

May-19 296.95 296.95 254.25 270.95 -8.75568

Jun-19 273 280.25 239 250.55 -8.22344

Jul-19 251.05 265.5 224.35 226.55 -9.75901

Aug-19 226 237.2 211.05 235.6 4.247788

Sep-19 226.1 238.8 212.2 222.95 -1.39319

Oct-19 223 262.85 220.6 246.1 10.35874

Nov-19 246.75 288.4 243 281.65 14.14387

Dec-19 283.2 299 281.15 293.7 3.707627

AVG 2.039941

Var 77.1943

SD 8.786028

Co var 0.30625

37
 Market Varience 12.12865

market risk 0.02525

INTERPRETATION:- from the above analysis average market returns is 2.03 , Variance
77.19 , Risk SD 8.78 , co variance with the market is 0.30 , Market Variance 12.13 , the
calculated no market risk is 0.02.

38
Tech Mahindra CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK
(BETA) FOR THE PERIOD OF 2017-2019

Date Open High Low Close RR

Jan-17 260 264.5 252.65 257.25 -1.05769

Feb-17 257.1 282.8 252.55 281.2 9.373785

Mar-17 281 299.95 276.25 294.85 4.928826

Apr-17 296.45 325.3 293.05 315.2 6.324844

May-17 316 328 301 314 -0.63291

Jun-17 313.75 326.05 304.5 314.35 0.191235

Jul-17 314 335.9 312.8 334.7 6.592357

Aug 2017 334.7 337.85 309.7 315.45 -5.75142

Sep-17 315.9 348.7 307.4 310.75 -1.63026

Oct-17 315 323.9 307.5 315.25 0.079365

Nov-17 317 318.2 288.25 306 -3.47003

Dec-17 307 325.3 293.05 322.5 5.04886

Jan-18 322.5 328 304.4 309.4 -4.06202

Feb-18 307.75 319 284.15 308.15 0.129976

Mar-18 308.25 333.8 299.55 326.05 5.774534

Apr-18 327.25 334.35 313.2 332.55 1.619557

May-18 333 347.8 304.55 321.85 -3.34835

Jun-18 323.5 352.9 319.8 331.65 2.51932

Jul-18 331.65 374.75 330 364.1 9.784411

39
Aug-18 365.5 387.85 345.3 369.45 1.080711

Sep-18 373.1 374.7 320 333.05 -10.7344

Oct-18 334 341.9 282.95 321.3 -3.8024

Nov-18 324.7 369.25 317.6 356.75 9.87065

Dec-18 358 396.6 344.45 373.4 4.301676

Jan-19 375.4 391.4 358 366.75 -2.30421

Feb-19 367.5 384.65 324.25 339.7 -7.56463

Mar-19 342 353 330.5 346.65 1.359649

Apr-19 347.35 369.3 344.45 359.4 3.469123

May-19 360.2 375 337.55 371.95 3.262077

Jun-19 374 380.45 360.6 370.55 -0.92246

Jul-19 371.15 382.7 354.85 366.8 -1.17203

Aug-19 366.65 401.75 350.4 391.1 6.668485

Sep-19 391.5 404 369 394.25 0.702427

Oct-19 394 400.9 362.25 365.85 -7.14467

Nov-19 367.1 375 348.3 359.9 -1.96132

Dec-19 359.75 359.75 327.6 341.6 -5.04517

AVG 0.624387

Var 24.54379

SD 4.954169

Co var -3.55464
Market Variance 12.12865
market risk -0.29308

40
INTERPRETATION:- from the above analysis average market returns is 0.62 , Variance
24.54 , Risk SD 4.95 , co variance with the market is -3.55 , Market Variance 12.13 , the
calculated no market risk is -0.29.

NIFTY CALCULATION OF RATE OF RETURNS, RISK (SD) AND MARKET RISK

(BETA) FOR THE PERIOD OF 2017-2019

41
Nifty

42
Date Open High Low Close RR
Jan-17 12,138.05 12,293.90 11,832.30 12,158.45 0.258812
Feb-17 11,885.50 12,158.80 11,802.55 12,055.05 1.425555
Mar-17 11,515.40 11,945.00 11,090.15 11,888.45 3.144051
Apr-17 10,950.95 11,594.85 10,580.25 11,484.45 4.584813
May-17 11,050.20 11,181.45 10,538.15 11,023.25 -0.33408
Jun-17 11,839.90 11,981.85 10,999.40 11,118.00 -5.09818
Jul-17 11,953.85 12,103.05 11,525.10 11,888.85 -1.38948
Aug-17 11,825.55 12,041.15 11,108.30 11,922.80 1.582224
Sep-17 11,555.20 11,855.15 11,549.10 11,848.15 0.811089
Oct-17 10,842.55 11,530.35 10,818.00 11,523.90 8.205342
Nov-17 10,851.35 11,118.10 10,585.55 10,892.50 -0.54233
Dec-17 10,881.80 10,988.45 10,583.55 10,830.95 -0.45538
Jan-18 10,930.80 10,985.15 10,333.85 10,852.55 -0.52348
Feb-18 10,441.80 10,922.45 10,341.90 10,885.85 4.155458
Mar-18 10,930.90 11,035.55 10,004.55 10,385.50 -4.98945
Apr-18 11,851.80 11,851.80 10,850.30 10,930.45 -5.98914
May-18 11,359.80 11,850.20 11,234.95 11,580.50 2.823113
Jun-18 10,832.35 11,355.00 10,504.55 11,355.50 5.815595
Jul-18 10,838.45 10,893.25 10,550.90 10,814.30 -0.22489
Aug-18 10,883.85 10,929.20 10,418.80 10,835.15 -0.44233
Sep-18 10,151.55 10,859.00 10,111.30 10,839.35 5.889208
Oct-18 10,489.95 10,525.50 9,951.90 10,113.80 -3.49488
Nov-18 11,044.55 11,118.35 10,285.30 10,492.85 -4.99522
Dec-18 10,531.80 11,181.55 10,404.55 11,028.80 4.809591
Jan-19 10,253.80 10,552.40 10,033.35 10,530.80 2.501401
Feb-19 10,390.35 10,490.45 10,094.00 10,225.55 -1.58545
Mar-19 9,893.30 10,384.50 9,831.05 10,335.30 4.45858
Apr-19 9,938.55 10,188.95 9,588.55 9,888.50 -1.49985
May-19 10,101.05 10,138.85 9,585.55 9,918.90 -1.81318

43
 Jun-19 9,588.95 10,114.85 9,543.55 10,088.10 5.101815
Jul-19 9,503.55 9,809.30 9,448.85 9,520.90 -0.85052
Aug-19 9,339.85 9,549.50 9,259.90 9,521.25 3.012895
Sep-19 9,220.50 9,358.15 9,085.15 9,304.05 0.905039
Oct-19 8,904.40 9,218.40 8,850.10 9,183.85 3.024909
Nov-19 8,580.35 8,982.15 8,538.50 8,889.50 3.508381
Dec-19 8,210.10 8,582.80 8,133.80 8,551.30 4.288558
AVG 0.919349
Var 12.12855
SD 3.482522

INTERPRETATION:- from the above analysis average market returns is 0.91 , Variance
12.12 , Risk SD 3.48

44
 CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSIONS

45
FINDINGS

TCS average market returns is usually 2. 43, Variance 129. 44, Risk SD 10. 38, co variance with
all the market is -0. 05, Market Variance 12. thirteen, the calculated no industry risk.

Wipro Average level of returns 0. 43503, Variance 106. 8548, SECURE DIGITAL 10. 33706,
Co va 4. 084778, Market Difference 12. 12865, the computed market risk is zero. 336787.
Infosys average industry returns is 2. goal, Variance 77. 19, Chance SD 8. 78, company
variance with the industry is 0. 30, Industry Variance 12. 13, typically the calculated no market
chance is 0. 02.
Technical Mhindra average market results is 0. 62, Difference 24. 54, Risk SECURE DIGITAL
4. 95, co difference with the market is usually -3. 55, Market Difference 12. 13, the computed
market risk is -0. 29.

average market results is 0. 91, Difference 12. 12, Risk SECURE DIGITAL 3. 48
The buyer who bears high chance will be getting large returns.

The investor provides to maintain the collection of diversified sectors stocks and shares
instead of investing in a new single sector of various stocks and shares.

People who are buying portfolios mostly depend on the advice of their friends, relatives,
financial advisers.

Most of the investors feel that inviting in stock/capital market is of high risk therefore

46
SUGGESTIONS

Just before investing in shares, need to check out type of gives, you want to buy and the way in
which you want to deal on the stock market.

Three main routes for investing in shares

• Spend your capital in the single organization
• Invest your own capital in several different businesses, a portfolio of stocks.
• Invest indirectly and distribute your risk through group investment like investment
believe in and unit trust
• The investor is able to know the risk and return of the shares by using the analysis.
• The investor who takes high risk involves taking of high returns.
• The investor who will not take risk involves taking of less returns.
• The investor to be a moderate person involves taking of optimum risk or return.
• A small investor can maintain a portfolio with diversified stocks rather than investing in
a few stocks, which he feels are good.
• The investor should include all those securities, which are undervalued in their portfolio,
and remove those securities that are overvalued.
• The risk and return of all securities and individual a desired combination in his portfolio.

47
CONCLUSION

Traders use a variety associated with tactics to determine risk. A person look at the typical return
of an expense and then find the average standard deviation more than the same time time period.
Normal distributions (the acquainted bell-shaped curve) dictate that will the expected return
associated with the investment will probably be 1 standard deviation from your typical 67% of
the period and two standard deviations from your average deviation 95% of times. This helps
traders evaluate risk numerically. In case they believe they could endure the risk, financially plus
emotionally, they invest.
Energetic risk can be noticed through comparison of several risk characteristics. Three associated
with the best risk metrics for active risk evaluations include beta, standard change or volatility.
Beta signifies a fund’s risk in accordance with its benchmark. A fund beta greater than one
indicates higher risk while a fund beta below one indicates lower risk. Standard deviation or
volatility expresses the variation of the underlying securities comprehensively.

48
BIBLIOGRAPHY

Books

 DONALD FISHER & RONALD J.JORDON, SECURITIES ANALYSIS AND

PROTFOLIO MANAGEMENT, 6TH EDITION.
 V.K. BHALLA, INVESTMENTS MANAGEMENT

-S.CHAND PUBLICATIONS

 PORTFOLIO MANAGEMENT BY KEVIN

 V.A. AVADHANI, INVESTMENT MANAGEMENT.

 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT –

-PUNITHAVATHY PANDIAN

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