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A STUDY ON PORTFOLIO CONSTRUCTION WITH REFERENCE TO THE NIRMAL BANG SECURITIES PVT LTD., ERODE

A PROJECT REPORTSubmitted by

M SATHIYAMOORTHI Register No: 078001114034

Of

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CONTENTS

CHAPTER PARTICULARS PAGE NO

ABSTRACT

1 INTRODUCTION

1.1 ABOUT THE STUDY 11

1.2 INDUSTRY PROFILE 27

1.3 COMPANY PROFILE 31

2 MAIN THEME OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY 42

2.2 SC OPE OF THE STUDY 44

2.3 LIMITATIONS OF THE STUDY 45

2.4 REVIEW OF LITERATURE 46

2.5 RESEARCH METHODOLOGY 47

3 ANALYSIS AND INTERPRETATION 51

4 4.1 FINDINGS & SUGGESSTIONS 83

5 4.2 CONCLUSIONS 85

BIBLIOGRAPHY 87

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ABSTRACT

The study has been undertaken to find out the portfolio construction with reference to

Nirmal Bang Securities Pvt Ltd., Erode,

The main objective is to analyses is tom identifying an effective portfolio

construction for the investment made by the investors. It is mainly focus on oil sector,

construction sector, cement sector, IT sector and banking sector.

For analysis of data the researcher had adopted some statistical tools. All the data are

analyzed and interpreted in the form of tabulation, chart act through the understanding

these above things, it is easy to know about share market, portfolio construction.

The researcher adopted secondary data for collected of information. This is collected

from different sources like Nirmal Bang Securities Pvt Ltd.,, internet, Newspapers,

Magazines etc, in order to get NSE Values in sectors.

The tabulation data have been analyzed are interpreted by using suitable tactical

techniques and tools. The results of the analysis findings and suggestions are given at the

end of the report.

ABOUT NIRMAL BANG SECURITIES PVT LTD.,

Founded in 1986 by Shri Nirmal bang, the Nirmal bang, the Nirmal bang Group is

recognized as one of the largest retail broking house in India, providing an array of financial

products and services.

Our retail and institutional clients have access to products such as

Equities

Derivatives

Commodities

Currency Derivatives

Mutual funds

IPOs,

Depository services

PMS

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Throughout history, we have fostered one overriding purpose – to provide each client

with personal service and quality work. By adhering to this principle, we have grown to

become a successful and well-respected firm of highly qualified professionals.

The Group is headed by Mr.Dilip Bang and Mr.Kishore Bang who bring forward

industry expertise, Insight and most importantly, create an environment of unmatched to

clients.

We are registered members of the Bombay Stock Exchange Limited(BSE),National

Stock Exchange of India Limited (NSE),Multi Commodity Exchange of India

Limited(MCX),National Commodity & Derivatives Exchange (NCDEX),National Multi

Commodity Exchange of India Limited (NMCE) and MCX stock Exchange Limited and

are also depository participants of NSDL and CDSL.

Mission

“ To work together with integrity and make our customers feel valued”.

Vision

“ to create valuable relationships and provide the best financial services most

professionally”.

Core value

“ respect our colleagues and the business itself”.

Client Focus

Client relationships form the core of our business. We value each client, no matter

what size, as a long-term relationship. And we seek to provide unmatched service to each

client and place him as a partner at the center of everything we do.

From the very beginning of the relationship, we work closely with client to identify

their financial goals and risk tolerance levels and leverage our strength of multiple

product offerings, research and financial strength to help achieve their goals. In the

process, we become an essential partner, creting opportunities, adding value and

transforming visions into reality.

Diverse Service Offerings

In addition to traditional broking services, we are also equipped to handle

commodity trading facility as well as currency derivatives and have access to wide range

of financial services like IPOs, mutual funds and insurance.

Timely Service

In an increasingly competitive environment, clients today require personalized

solutions and greater flexibility and responsiveness than ever before. Our professionals

are always ‘on call’. We provide them service throughout the year and not just at the end

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of the year. We believe such service is essential for delivering solutions and constructive

relationships.

Able Team

We have developed a strong and enduring team by recruiting primarily from

leading graduate and postgraduate universities and promoting from within. Our team

works together to provide superior results to our clients. At the same time, each our

clients is assigned as specific team member who ‘owns’ the relationships, providing

continuity, responsiveness and point of easy access to the firm.

Culture

We strive to maintain ethical standards at all and lay strong emphasis on honesty,

integrity and confidentiality. We speak and act to ensure transparency at all levels and in

everything we do.

Financial Strength

The strength of our balance sheet is such that it gives greater confidence to all our

retail and institutional clients in dealing with us. The financial strength of the group helps

in further building the network and infrastructure to cater to the larger market.

Using up to date technology and resources, Nirmal bang serves individuals,

businesses, corporate, and institutions to enable the fulfillment of each clients vision. Our

portfolio of services include

A robust trading platform for equities, equity derivatives and currency derivatives on

NSE, BSE as well as MCX-SX

Depository services of NSDL and CDSL

Commodity trading in NCDEX, MCX and NMCE

Access to a wide range of financial products like IPOs, mutual funds, insurance and PMS

Investment and trading advisory services based on technical, fundamental and market

research

Fortnightly magazine ‘Beyond Market’ which provides readers with the latest news,

interesting stories and articles, key announcements and insightful excerpts. It also

captures current market trends, useful tips on investing and other latest developments in

the economy. The same is available on our website and is also posted to registered

members.

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Leadership Team

Our senior management team has deep expertise and experience in managing the

company through business, economic and technological cycles, as well as strong skills in

establishing and developing lasting client relationships.

Mr.Dilip Bang

Mr.Dilip Bang is the co-founder and Director of Nirmal Bang Group and has over

20 years of experience in the industry. He is known for his ability to read market trends

and has an in depth Knowledge of the Indian capital markets. He handles the front end

operations of the business and trading oppurtunities. His excellent networking and

relationship management skills are the main factors responsible for the success of the

group.

Mr.Kishore Bang

Mr.Kishore Bang is the co-founder and Director of Nirmal Bang Group. He

handles the operation And management aspects. He is also instrumental in the retail

expansion and infrastructure development of the group. A visionary and an enable

administrator with strong business acumen, Mr.Kishore Bang’s experience of around 20

years has helped the company to grow in leaps and bounds.

Mr.Rakesh Bhandari

Mr.Rakesh Bhandari is a qualified chartered Accountant and serves as the Senior

Vice-President- Corporate Planning for the Group.

M.Deepak Agarwal

M.Deepak Agarwal is a qualified chartered Accountant and serves as the Head of

Business Development for the Group

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CHAPTER I

INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

This study deals with the relationship between share prices and share dividends. Most

financial textbooks point out that in a well-functioning capital market these two variables

should be related (e.g. Brealey and Myers, 1986); the present value of the share should be

equal to the dividend stream discounted by the return earned on securities of comparable risk.

Of course, this simple relationship only holds in a world of certainty where investors have

access to perfect information. Nevertheless, Shiller (1981) demonstrates that a similar

relationship should hold in a world of uncertainty where investors have rational expectations.

SUBJECT BACKGROUND OF THE RESEARCH TOPIC

A substantive body of empirical research supports the view that share prices are

influenced by changes in company dividends. For example, questionnaire surveys of investors

indicate that dividend information plays an important part in their assessment of the current

value of a share (Arnold and Moizer, 1984; Pike, Meerjanssan and Chadwick, 1993) while

interviews with financial managers suggest that companies take a great deal of care when

setting their dividend level (Lintner, 1956). For example, Arnold and Moizer (1984) reported

that 87% of the 202 investment analysts in their survey “almost always” estimated future

dividend yields when valuing shares. In Pike et al. (1993) dividend information was ranked

third behind price/earnings ratios and net assets per share, in terms of usefulness for share

valuation.

In addition, stock market studies demonstrate that share prices respond to dividend

news; dividend increases tend to be associated with share price increases while dividend cuts

are usually associated with share price falls (Pettit, 1972; Ahrony and Swary, 1980;

Abeyrathna et al., 1996). A small minority of authors has suggested that dividend cuts may

not be seen as bad news by investors; instead, they may indicate that a company has profitable

investments which it wishes to fund from internal cash resources. For example, Woolridge and

Ghosh (1984) cite the example of Gould Inc. where the share price increased by 2% on news

of a 60% cut in dividends; the authors suggested that Gould’s management had convinced the

market that the reduction in dividends was to be used to fund innovative investment.

Researchers such as Watts (1973), Johnson and Jensen (1995) and De Angelo, De Angelo and

Skinner (1996) argue that dividends do not act as a signal to investors about the future

prospects of the firm. These authors point out that dividend changes tend not to be followed

by earnings changes of the same sign. For example, they demonstrate that dividend cuts

usually indicate that the firm has already experienced several years of financial pressure and

are usually followed by earnings increases.

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Once a company makes a profit, they must decide on what to do with those profits.

They could continue to retain the profits within the company, or they could pay out the profits

to the owners of the firm in the form of dividends. Once the company decides on whether to

pay dividends, they may establish a somewhat permanent dividend policy, which may in turn

impact on investors and perceptions of the company in the financial markets. What they

decide depends on the situation of the company now and in the future. It also depends on the

preferences of investors and potential investors.

Dividends are payments made by a company to its shareholders. When a

company earns a profit, that money can be put to two uses: it can either be re-invested in the

business (called retained earnings), or it can be paid to the shareholders of the company as a

dividend. Many companies retain a portion of their earnings and pay the remainder to their

shareholders. Publicly-traded companies usually pay dividends on a fixed schedule,

commonly annually, bi-annually or quarterly; however, they may declare a dividend at any

time.

Dividends are usually paid in cash. Sometimes dividends instead take the form of

shares in the company (either newly-created shares or existing shares bought in the market).

Exceptionally, dividends might take the form of shares in other companies or other assets.

The profits of a company can either be reinvested in the business or paid to its

shareholders as a beverage. The frequency of these varies by country. In the United States

dividends of publicly-traded companies are usually declared quarterly by the board of

directors. In some other countries dividends are paid biannually, as an interim dividend shortly

after the company announces its interim results and a final dividend typically following its

annual general meeting. In other countries, the board of directors will propose the payment of

a dividend to shareholders at the annual meeting who will then vote on the proposal.

Where a company makes a loss during a year, it may opt to continue paying

dividends from the retained earnings from previous years or to suspend the dividend. Where a

company receives a non-recurring gain, e.g. from the sale of some assets, and has no plans to

reinvest the proceeds, the money is often returned to shareholders in the form of a special

dividend.

Dividends are payments made by a company to its shareholders. When a company

earns a profit, that money can be put to two uses: it can either be re-invested in the business

(called retained earnings), or it can be paid to the shareholders of the company as a dividend.

Many companies retain a portion of their earnings and pay the remainder to their shareholders.

Publicly-traded companies usually pay dividends on a fixed schedule, commonly annually, bi-

annually or quarterly; however, they may declare a dividend at any time.

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Forms of payment

Cash

Cash dividends (most common) are those paid out in form of real cash. Such

dividends are a form of investment income and are usually taxable to the recipient in the year

they are paid. This is the most common method of sharing corporate profits with the

shareholders of the company.

Stock

Stock or scrip dividends are those paid out in form of additional stock shares of the

issuing corporation, or other corporation (e.g., its subsidiary corporation). They are usually

issued in proportion to shares owned (e.g., for every 100 shares of stock owned, 5% stock

dividend will yield 5 extra shares). This is very similar to a stock split in that it increases the

total number of shares while lowering the price of each share and does not change the market

capitalization or the total value of the shares held.

Property

Property dividends or dividends in specie (Latin for "in kind") are those paid out in

form of assets from the issuing corporation or another corporation, such as a subsidiary

corporation. They are relatively rare and most frequently are securities of other companies

owned by the issuer, however they can take other forms, e.g. products or services provided by

the corporation.

Dates

Dividends must be "declared" (approved) by a company’s Board of Directors each

time they are paid. There are four important dates to remember regarding dividends. These are

discussed in detail with examples at the Securities and Exchange Commission site

Declaration date

The declaration date is the day the Board of Directors announces its

intention to pay a dividend. On this day, a liability is created and the company records that

liability on its books; it now owes the money to the stockholders. On the declaration date, the

Board will also announce a date of record and a payment date.

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Ex-dividend date

The ex-dividend date is the day after which all shares bought and sold no longer

come attached with the right to be paid the most recently declared dividend. This is an

important date for any company that has many stockholders, including those that trade on

exchanges, as it makes reconciliation of who is to be paid the dividend easier. Prior to this

date, the stock is said to be cum dividend ('with dividend'): existing holders of the stock and

anyone who buys it will receive the dividend, whereas any holders selling the stock lose their

right to the dividend. On and after this date the stock becomes ex dividend: existing holders of

the stock will receive the dividend even if they now sell the stock, whereas anyone who now

buys the stock now will not receive the dividend.

Record date

Shareholders who properly registered their ownership on or before the date of record

will receive the dividend. Shareholders who are not registered as of this date will not receive

the dividend. Registration in most countries is essentially automatic for shares purchased

before the ex-dividend date.

Payment date

The payment date is the day when the dividend checks will actually be mailed to the

shareholders of a company or credited to brokerage accounts.

Dividends may affect capital structure.

• Retaining earnings increases common equity relative to debt.

• Financing with retained earnings is cheaper than issuing new common equity.

Dividend Policy and Stock Value

There are various theories that try to explain the relationship of a firm's dividend

policy and common stock value.

Dividend Irrelevance Theory

This theory purports that a firm's dividend policy has no effect on either its value or

its cost of capital. Investors value dividends and capital gains equally.

Optimal Dividend Policy

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Proponents believe that there is a dividend policy that strikes a balance between

current dividends and future growth that maximizes the firm's stock price.

Dividend Relevance Theory

The value of a firm is affected by its dividend policy. The optimal dividend policy is

the one that maximizes the firm's value.

Dividend policy remains a source of controversy despite years of theoretical and

empirical research, including one aspect of dividend policy: the linkage between dividend

policy and stock price risk (Allen and Rachim, 1996). Paying large dividends reduces risk and

thus influence stock price (Gordon, 1963) and is a proxy for the future earnings (Baskin,

1989). A number of theoretical mechanisms have been suggested that cause dividend yield

and payout ratios to vary inversely with common stock volatility. These are duration effect,

rate of return effect, arbitrage pricing effect and information effect. Duration effect implies

that high dividend yield provides more near term cash flow. If dividend policy is stable high

dividend stocks will have a shorter duration. Gordon Growth Model can be used to predict

that high-dividend will be less sensitive to fluctuations in discount rates and thus ought to

display lower price volatility.

Agency cost argument, as developed by Jensen and Meckling (1976) proposed that

dividend payments reduce costs and increase cash flow, that is payment of dividends

motivates managers to disgorge cash rather than investing at below the cost of capital or

wasting it on organizational inefficiencies (Rozeff, 1982 and Easterbrook 1984). Some authors

have stressed the importance of information content of dividend (Asquith and Mullin, 1983;

Born, Moser and officer 1983). Miller and Rock (1985) suggested that dividend

announcements provide the missing pieces of information about the firm and allows the

market to estimate the firm’s current earnings. Investors may have greater confidence that

reported earnings reflect economic profits when announcements are accompanied by ample

dividends. If investors are more certain in their opinions, they may react less to questionable

sources of information and their expectation of value may be insulated from irrational

influence.

Rate of return effect, as discussed by Gordon (1963), is that a firm with low payout

and low dividend yield may tend to be valued more in terms of future investment

opportunities (Donaldson, 1961). Consequently, its stock price may be more sensitive to

changing estimates of rates of return over distant time periods. Thus expanding firms although

may have lower payout ratio and dividend yield, exhibit price stability. This may be because

dividend yields and payout ratio serves as proxies for the amount of projected growth

opportunities. If forecasts of profits from growth opportunities are less reliable than forecasts

of returns on assets in place, firms with low payout and low dividend yield may have greater

price volatility. According to duration effect and arbitrage effect, the dividend yield and not

the payout ratio is the relevant measure. The rate of return effect implies that both dividend

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yield and payout ratio matters. Dividend policy may serve as a proxy for growth and

investment opportunities. Both the duration effect and the rate of return effect assume

differentials in the timing of the underlying cash flow of the business. If the relationship

between risk and dividend policy remains after controlling for growth, this would suggest

evidence of either the arbitrage or information effect.

THEORETICAL/FRAMEWORK/AND/MODEL/SPECIFICATION

Control variables:

Share price volatility should be related to the basic risks encountered in the firm's

product markets. Market risk may also have impact on the firm's dividend policy. Therefore

include a control variable to account for the variability in the firm's earnings stream. Given

operating risk, there should be a direct link between stock price volatility and leverage. Under

conditions of asymmetric information there is also likely to be a link between borrowing and

dividend policy. A control variable was included to reflect corporate leverage. There are

potential links between size and volatility. Small firms are likely to be less diversified in their

activities and less subject to investor scrutiny. Institutions appear to concentrate their research

activities and investment policies on larger listed companies. The market in the stocks of

small listed firms could conceivably be less informed, more illiquid, and as a consequence

subject to greater price volatility. Baskin (1989) suggests that firms with a more dispersed

body of shareholders may be more disposed towards using dividend policy as a signaling

device. The latter may also be a function of size and thus a size control was required.

Dividend payout policy could be inversely linked to growth and investment

opportunities. The previously mentioned duration and rate of return effects assume timing

differentials in the firm's underlying cash flows. A variable to reflect growth was also

included. The suggestion is that any remaining link between dividend policy and stock price

volatility, after controlling for the influence of growth, would be suggestive of either the

arbitrage or information effect. It is also possible that systematic differences in market

conditions, cost structures, regulatory restrictions etc., may lead to differences in dividend

policy.

Variable definition and opening prices only.

Dividend yield (DY)

The variable was calculated by summing all the annual cash dividends paid to

common stock holders and then dividing this sum by the average market value of the stock in

the year. The average for all available years was utilized.

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Earning volatility (EV)

In order to develop this variable, the first step is to obtain an average of available

years of the ratio of operating earnings (before taxes and interest) to total assets. The next step

is to calculate an average of the squared deviation from the overall average. A square root

transformation is then applied to the mean squared deviation to obtain estimates of standard

deviation.

Payout Ratio (POR)

To begin, total cumulative individual company earnings and dividends were

calculated for all years. Payout is the ratio of total dividends to total earnings. The use of this

procedure controls the problem of extreme values in individual years attributable to low or

possibly negative net income. The payout ratio is set to one in cases where a total dividend

exceeds total cumulative profits.

Size (SZ)

The variable size was constructed in a form that reflects the order of magnitude in

real terms. The variable was constructed by taking the average market value of common

stocks. The value of real size (Rs. milllion) was averaged over the period

Long-term Debt (DA)

The ratio of the sum of all the long-term debt (debt with maturity more than a year)

to total assets is taken. An average is taken over all available years.

Growth in Assets (ASg)

The yearly growth rate was calculated by taking the ratio of the change in total assets in a

year. Then the ratio was averaged over the years.

FACTORS RESPONSIBLE FOR PRICE FLUCTUATIONS

In a securities market, prices or returns show fluctuations for a variety of reasons:

changes in fundamental factors of firms, investors ‘endowments, tastes or alternatively the

attitudes towards risk, correct or incorrect anticipations or expectations of investor and other

market participants, differences in information and mode of evaluation, transient imbalances

between demand for and supply of securities, and the nature and number of stabilizing forces,

among others, cause prices to fluctuate either from one point of equilibrium to another or

above and below an equilibrium point. The changes in fundamental factors cause prices or

returns to shift from one point of equilibrium to another. For instance, information regarding

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changes in the economy, changes in policies, including industrial policy, as also the political

situation, and the social situation, influence the over all price behavior of a market.

Apart from fundamental factors, the transitory imbalances between supply of and

demand for securities may also cause price fluctuations. For instance, in the absence of

stabilizing forces, excess supply (demand) of securities in the short- run causes the price to

fall (rise). In the presence of stabilizing forces, such as traditional speculators and value based

investors, the extent of fluctuations tend to be small, as these stabilizing forces act as buyers

(sellers), when there is excess of supply (demand), thus, arresting the magnitude of a fall (rise)

in the price. However, the stabilizing forces may not completely mitigate the price change; as

such acts may not bestow any benefit on them. These forces require a minimum extent of

price change in order to undertake the act of stabilization of prices, which would give them

scope to earn a responsible reward.

The expectations and foresight of investors as well as speculators determine the

magnitude of price fluctuations to a large extent. If market participants anticipate changes.

In either fundamental factors or other factors correctly, and if the change or

anticipated change comes about gradually, the prices move in a smooth fashion from one point

of equilibrium to another. On the contrary, when the anticipations prove to be either too

optimistic or too pessimistic, or the changes in these factors or anticipations about them,

undergo a sudden change, the prices move erratically, rather than move in a smooth fashion

resulting in greater price fluctuations.

The numbers of speculations in relation to other traders also influences the extent of

fluctuations. The traditional role of a speculator is to act as a buyer when there is excess

supply and as a seller when there is excess demand.

Changes in fundamental and other factors as well as corrector incorrect anticipations

also determine the short- term and the long- term price changes. If the changes takes place

gradually and anticipations prove to be correct, the short-term fluctuations tend to be similar

in magnitude as that of average long-term fluctuations, as in this case, the short-term

fluctuations or price changes tend to be one direction, which add up to determine long- term

fluctuations. On the contrary, if the anticipations are not correct, irrespective of mode of

arrival of information- whether gradual or not gradual the average long-term fluctuations tend

to be smaller than the short-term fluctuations.

It is clear that the fluctuation of prices or price volatility is influenced by the

arrival of information- gradual or otherwise- and the correct or incorrect anticipation of

market participants. Further, the role played by speculators either corrects the situation by

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minimizing the extent of fluctuations, or further accentuates fluctuations and thereby

destabilizes prices.

TITLE

A study on the correlation between the equity price movement and dividend

declaration.

BRIEF BACKGROUND

The dividend policy of a firm determines what proportion of earning is paid to

shareholders by way of dividends and what proportion is ploughed back in the firm for

reinvestment purposes.

If a firm’s capital budgeting decision is independent of its dividend policy, a higher

dividend payment will entail a greater dependence on external financing. Thus the dividend

policy has a bearing on the choice of financing. On the other hand, if a firm’s capital

budgeting decision on its dividend decision, a higher dividend payment will cause shrinkage

of its capital budget and vice versa. In such a case, the dividend policy has a bearing on the

capital budgeting decision.

A firm’s dividend payout ratio obviously depends on how earnings are measured. For

the sake of simplicity, we look at the accounting measure of earnings and do not truly reflect a

firm’s capacity to pay dividends.

STATEMENT OF PROBLEM

A number of studies have been conducted on correlation between equity price

movements and dividend declaration. It is not surprising that correlation between equity price

movement and dividend declaration have become an important area in financial research

considering its strong implications for corporate policy.

The principal objective of corporate financial management is to maximize the market

value of equity shares the key question of interest to general public is: What is the relationship

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between dividend policy and market value of equity shares? This is the most controversial and

unresolved question in corporate finance.

1.2 INDUSTRY PROFILE

Stock Market of India

Introduction

Stock markets refer to a market place where investors can buy and sell

shares . The price at which each buying and selling transaction takes is determined by the

market forces (i.e. demand and supply for a particular stock).

Let us take an example for a better understanding of how market forces determine

stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an

upward movement in its stock price. More and more people would want to buy this stock (i.e.

high demand) and very few people will want to sell this stock at current market price (i.e. less

supply). Therefore, buyers will have to bid a higher price for this stock to match the ask price

from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there

are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd.

in the market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock exchanges to make a

transaction but now with the dawn of IT, most of the operations are done electronically and

the stock markets have become almost paperless. Now investors dont have to gather at the

Exchanges, and can trade freely from their home or office over the phone or through Internet.

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

others.

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Once a company's public offering is complete, it gets listed in a stock exchange. After

listing it would be available for trading to all investors in the stock exchanges where they are

listed. In India we have two major stock exchanges. They are:

\The National Stock Exchanges (NSE)

The NSE is India's largest and the worlds third largest stock exchange in terms of

Transaction volumes & amounts. The NSE is based out of Bombay. The NSE has set up its

trading platform as a nation-wide, fully automated screen based system. This enables anyone

in any part of the country to trade on shares listed in the NSE.

The NSE index or Nifty

The NSE Index or the Nifty Index as it is popularly known, is the index of the

performance of the 50 largest & most profitable, popular companies listed in the index. Each

company that is part of the index has its own weightage in the value of the Index. The value of

the Nifty Index is the weighted average of the prices of these 50 companies.

The Bombay Stock Exchanges (BSE)

The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It

is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has

over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the

NSE. BSE also uses the latest technologies in the IT field to provide a single place where

traders from across the world can buy/sell shares in the Indian share market.

The BSE Index or Sensex (NSE)

The BSE Index or the Sensex as it is popularly known, is the index of the

performance of the 30 largest & most profitable, popular companies listed in the index. Each

company that is part of the index has its own weightage in the value of the Index. Since the

number of companies is lesser, the index variations are higher when compared to the Nifty

index.

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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 Century

East India Company was the dominant institution and by end of the century, busuness in its loan securities gained full 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 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)

1.3 COMPANY PROFILE

ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

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reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering

in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of

Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by

ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the

initiative of the World Bank, the Government of India and representatives of Indian industry.

The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses. In the 1990s,

ICICI transformed its business from a development financial institution offering only project

finance to a diversified financial services group offering a wide variety of products and

services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In

1999, ICICI become the first Indian company and the first bank or financial institution from

non-Japan Asia to be listed on the NYSE.

ICICI Bank has a network of 741 branches (including 48 extension counters) and

over 3300 ATMs in India and presence in 30 International locations. ICICI Bank offers a wide

range of banking products and financial services to corporate and retail customers through a

variety of delivery channels and through its specialised subsidiaries and affiliates in the areas

of investment banking, life and non-life insurance, venture capital and.asset.management.

STATE BANK OF INDIA

State Bank of India (SBI) (LSE: SBID) is the largest bank in India It is. also,

measured by the number of branch offices and employees, the largest bank in the world.

Established in 1806 as Bank of Bengal, it remains the oldest commercial bank in the Indian

Subcontinent and also the most successful one providing various domestic, international and

NRI products and services, through its vast network in India and overseas. With an asset base

of $126 billion and its reach, it is a regional banking behemoth. The government nationalized

the bank in 1955, with the Reserve Bank of India taking a 60% ownership stake. In recent

years the bank has focused on reducing its huge staff through Golden handshake schemes and

computerizing its operations

The roots to the State Bank of India are traceable to the first decade of 19th century,

when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June

1806. The government amalgamated Bank of Bengal and two other Presidency banks, namely,

the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January

1921, and named the reorganized banking entity the Imperial Bank of India. All these

Presidency banks were incorporated as joint stock companies, and were the result of the royal

charters. The Imperial Bank of India continued to remain a joint stock company. Until the

establishment of a central bank in India the Imperial Bank and its early predecessors served as

the nation's central bank printing currency.

There are seven other associate banks that fall under SBI. They all use the "State

Bank of" name followed by the regional headquarters' name. These were originally banks

20

belonging to princely states before the government nationalized them in 1959. In tune with the

first Five Year Plan, emphasizing the development of rural India, the government integrated

these banks with the State Bank of India to expand its rural outreach. The State Bank group

refers to the seven associates and the parent bank. All the banks use the same logo of a blue

keyhole. There has been a proposal to merge all the associate banks into SBI to create a "mega

bank" and streamline operations.

ACC LIMITED

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's

operations are spread throughout the country with 14 modern cement factories, 19 Ready mix

concrete plants, 19 sales offices, and several zonal offices. ACC has made significant

contributions to the nation building process by way of quality products, services and sharing

its expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of

cement and concrete and a trendsetter in many areas of cement and concrete technology

including improvements in raw material utilization, process improvement, energy

conservation and development of high performance concretes.

ACC’s brand name is synonymous with cement and enjoys a high level of equity in

the Indian market. It is the only cement company that figures in the list of Consumer Super

Brands of India.

ACC has rich experience in mining, being the largest user of limestone, and it is also

one of the principal users of coal. As the largest cement producer in India, it is one of the

biggest customers of the Indian Railways, and the foremost user of the road transport network

services for inward and outward movement of materials and products.

ACC has also extended its services overseas to the Middle East, Africa, and South

America, where it has provided technical and managerial consultancy to a variety of

consumers, and also helps in the operation and maintenance of cement plants abroad.

ACC is among the first companies in India to include commitment to environmental

protection as one of its corporate objectives, long before pollution control laws came into

existence. The company installed pollution control equipment and high efficiency

sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants

and coolers as far back as 1966. Every factory has state-of-the art pollution control equipment

and devices.

GUJARAT AMBUJA CEMENTS

21

Ambuja Cements was set up in 1986. In the last decade the company has grown

tenfold. The total cement capacity of the company is 16 million tonnes.Its plants are some of

the most efficient in the world. With environment protection measures that are on par with the

finest in the developed world.

The company's most distinctive attribute, however, is its approach to the business.

Ambuja follows a unique homegrown philosophy of giving people the authority to set their

own targets, and the freedom to achieve their goals. This simple vision has created an

environment where there are no limits to excellence, no limits to efficiency. And has proved to

be a powerful engine of growth for the company. As a result, Ambuja is the most profitable

cement company in India, and the lowest cost producer of cement in the world.

GAMMON INDIA LIMITED

Gammon India Limited is one of the leading Construction companies in India to-day.

The company was established by late Mr. J.C.Gammon in 1919 as a firm of Civil Engineers &

Contractor which in 1922 was incorporated as a Private Limited Company under the name of

J. C. Gammon (Bombay) Pvt. Ltd. The firm went public

in/1962/and/was,rechristened,as..Gammon.India,Limited.

The first work carried out by Mr. J. C. Gammon was the construction of reinforced

concrete pile foundations for Gateway of India. Since then, the Company has executed many

multifarious civil engineering works from Cotton Godowns to Bridges/flyovers, Marine

Structures, Cooling Towers, Chimneys, Tunnels and Dams in India and in the middle-east.

Gammon is the pioneers of prestressed concrete in India. Today, the Company can claim for

the largest numbers of bridges and flyovers built in India. With over 80 years of tradition in

the field of construction, Gammon is a name that is inextricably woven into the fabric of

India. The only construction Company in India to have been accredited with ISO 9001: 1994

certifications in all fields of Civil Engineering including design.

Gammon India Limited, the only Indian Construction Company to have been

accredited with ISO 9001 certification for all fields of Civil Engineering Works including

design, stands out as gateway for Technological and Engineering excellence in Civil

Engineering fields. Gammon's dedicated and experienced team of planners, designers and

construction engineers are ever ready to contribute their expertise together and turn vision into

reality.

NAGARJUNA CONSTRUCTION COMPANY LIMITED

Nagarjuna Construction Company Limited (NCC) is one of the leading

professionally managed public limited construction company in India. The company has

successfully completed 28 years of construction excellence in executing Turnkey Projects,

22

Industrial Buildings, Multistoried/Commercial Structures, Townships, Roads & Bridges,

Pipelines, etc.

NCC is the brainchild of this visionary. Having achieved a high-caliber standing

under his able steering, the company rededicates itself with renewed vigor and commitment to

the cause of elevating the Indian infrastructure industry to international standards of

excellence. To place it on par with the best in the world, will always be the company's

endeavor.

Behind every progressive company is a dynamic team that propels it to reach higher

and greater echelons of success. NCC's governing body is a veritable treasure trove of

experience and expertise. Each of the members has made invaluable contribution in their

chosen fields of activity. From the innovating new construction and cost saving

methodologies, to identifying new areas of contribution, and ensuring an uninterrupted flow of

day-to-day activities, they have been instrumental in making NCC a formidable force in the

Indian construction sector.

NCC has made concrete contribution to nation building by fusing tremendous

engineering knowledge with unique innovative skills. It aims at offering best value solutions

by acquiring total expertise in infrastructure building for the country. In keeping with its

mission of contributing effectively to economic development, NCC has taken up the cudgels

to provide long lasting buildings and industrial structures at optimum cost and in minimal

time. Construction of large factory and workshop structures has been made speedier and more

economical by the use of modern construction methods including folded plate and shell roofs,

precast and prestressed roof/elements/etc.

INFOSYS

Infosys was established in the year 1981 and successfully completed IPO in India in

the year 1993. In 1999 the company crossed $100 Million in annual revenue. In 2000 Infosys

crossed $200 Million in annual revenue. Infosys was ranked No. 1 in the "Best Employers in

India 2002" survey conducted by Hewitt Associates for the second consecutive year.

In 2004 the company crossed US $1 Billion in annual revenue. Infosys has crossed

crosses $ 2 billion in revenue in the year 2005. Infosys Technologies Ltd. (NASDAQ: INFY)

provides consulting and IT services to clients globally - as partners to conceptualize and

realize technology driven business transformation initiatives. With over 52,000 employees

worldwide, we use a low-risk Global Delivery Model (GDM) to accelerate schedules with a

high degree of time and cost predictability.

23

The services provides by Infosys are Application Development and Maintenance,

Corporate Performance Management, Independent Validation Services, Infrastructure

Services, Packaged Application Services, Product Engineering, Systems Integration.

TATA CONSULTANCY SERVICES

TCS commenced operations in 1968, when the IT services industry didn’t exist as it

does today. Now, with a presence in 34 countries across 6 continents, & a comprehensive

range of services across diverse industries, TCS is one of the world's leading Information

Technology companies. Six of the Fortune Top 10 companies are among their valued

customers.

Tata Consultancy Services Limited (TCS) is the world-leading information

technology consulting, services, and business process outsourcing organization that

envisioned and pioneered the adoption of the flexible global business practices that today

enable companies to operate more efficiently and produce more value.

TCS is a part of one of Asia's largest conglomerates - the TATA Group -

which, with its interests in Energy, Telecommunications, Financial Services, Chemicals,

Engineering & Materials, provides them with a grounded understanding of specific business

challenges facing global companies.

INDIAN OIL CORPORATION LTD

Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of

Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).It is currently

India’s largest company by sales with a turnover of Rs. 1,83,204 crore (US $ 41 billion) and

profits of Rs. 4,915 crore (US $ 1.10 billion) for fiscal 2005.

Indian Oil is also the highest ranked Indian company in the prestigious Fortune

‘Global 500’ listing, having moved up 17 places to the153rd position this year based on fiscal

2005 performance. It is also the 21st largest petroleum company in the world and the No 1

petroleum trading companies among the National Oil Companies in the Asia-Pacific region.

Indian Oil and its subsidiaries account for 47% petroleum products market share

among public sector oil companies, 43.5% national refining capacity and 74% petroleum

products pipeline capacity. The Indian Oil Group of companies owns and operates 10 of

India’s 18 refineries with a combined refining capacity of 60.20 million tones per annum (1.2

million barrels per day). These include two refineries of subsidiary Chennai Petroleum

Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited

24

(BRPL).The Company’s cross-country crude oil and product pipelines network spanning over

9,000 km meets the vital energy needs of the country.

As the flagship national oil company in the downstream sector, Indian Oil, together

with its marketing subsidiary, IBP Co. Ltd., reaches precious petroleum products to millions

of people everyday through a countrywide network of over 30,000 sales points. They are

backed for supplies by 183 bulk storage terminals and depots, 97 aviation fuel stations and 88

Indane LPG bottling plants.

OIL AND NATURAL GAS CORPORATION

In 1955, Government of India developed the oil and natural gas resources in the

various regions of the country as part of the Public Sector development. With this objective,

an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office

under the then Ministry of Natural Resources and Scientific Research. The department was

constituted with a nucleus of geoscientists from the Geological survey of India.

ONGC is placed at the top of all Indian Corporates listed in Forbes 400 Global

Corporates (rank 133rd) and Financial Times Global 500 (rank 326th), by Market

Capitalization. ONGC is the only Indian company to have earned a Net Profit of over Rs

10,000 crores (2002-03).

Oil and Natural Gas Corporation Limited (ONGC) is India’s Most Valuable

Company, having a market share of above 80% in India’s Crude Oil and Natural Gas

Exploration and Production. ONGC registered the highest profit among all Indian companies

at US $ 1.92 billion (Rs. 8664.4 Crore) in the year 2003-04. Its production of Crude Oil in

2003-04 was 26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC also produce

Value-Added Products (VAP) like C2-C3; LPG; Naphtha and SKO.

25

1.4 REVIEW OF LITERATURE

In this project work, secondary data are used as a basis of analysis. In this study, Beta

and Volatility calculations and different types of trading strategies are analyzed. The current

study has been undertaken to measure the risk and variability of different company’s shares at

different point of time. It is also helpful for analyzing the company’s performance in the share

market at the time of dividend declaration. So the progress in the share market is high and we

can see the investors are in the right path or they are achieving their objectives.

Methods of Review

In this project work, the researcher used the one month share prices of ten different

company’s before dividend declaration, after dividend declaration till ex date and after ex date

for the purpose of calculating the Beta values, correlation coefficient and Volatility values and

trading strategy analysis. In order to get the Beta values Nifty is the base for all the ten

different companies. The data collected for the purpose of calculations are mainly from the

websites like nseindia.com and corresponding company’s websites.

Benefits from the Literature

The monthly prices of the shares were the main source for the Beta, coefficient of

correlation and Volatility calculation and for analyzing the different strategies.

Without these secondary sources, it is not able to do the same; the web site is one of

the much useful sources of secondary data for getting information about the share prices and

26

dividend declaration. Thus this secondary data played an important role in completing this

project.

1.5 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To identify an effective portfolio construction for the investment made by the

investors.

SECONDARY OBJECTIVES

To identify the correlation between price movement of equities corresponding

with dividend declaration.

To find out the good dividend yield companies for best investors

To help investors to made wise investment strategy

To show the beta and volatility calculation for measuring the risk and variability

of different companies share.

27

1.6 SCOPE OF THE STUDY

The study is confined to very few sectors like oil, construction, cement, IT and

Banking. The study is undertaken to know beta values, coefficient of correlation and Volatility

of ten companies from the said industries. They are:

1. ICICI

2. SBI

3. ACC

4. GUJARAT AMBUJA CEMENTS

5. GAMMON INDIA LIMITED

6. NAGARJUNA CONSTRUCTION COMPANY LIMITED

7. INFOSYS

8. TCS

9. IOC

10. ONGC

1.7 LIMITATIONS TO THE STUDY

Since the study is confined to five sectors that itself selective few

companies, a universally applicable results cannot be drawn.

The trend in dividend declaration cannot be expected to continue in the

same manner.

28

CHAPTER-II

RESEARCH METHODOLOGY

CHAPTER 2

RESEARCH METHODOLOGY

. It covers the type of research used in this project, sample size chosen, sample

description, data collection. Each will be described separately under the following headings.

Type of research

29

Research design is purely and simply the framework for a study that guides the

collection and analysis of data.

Sellitz and others (1962) define the research design as the arrangement of data

collection and analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedure. It is a conceptual structure within which research is

conducted.

This study is basically an exploratory research. Exploratory research is a study

undertaken to define nature of problem & opportunity and to gain a better understanding of

the environment within which the problem &opportunity has occurred.

Convenient Sampling

Under this method researcher is conveniently drawing the sample. Researcher is

conveniently picking samples from companies with track trend of consistency in dividend

declaration

Statistical Tools used for calculation of volatility

Beta

Beta measures the non diversifiable risk. Beta shows how the price of a security

responds to market forces. In effect, the more responsive the price of a security is to changes

in the market, the higher will be its Beta. Beta is calculated by relating the returns on a

security with the return for the market. It can be positive or negative.

Beta for each stock calculated using daily opening and closing share price each

company and corresponding daily National Stock Exchange Sensex. First, rate of returns of

companies and National Stock Exchange Sensex are calculated. The calculation as follows:

Rate of Return = share price in the closing – share price at the opening

Share price in the opening

Computation of Beta:

β = N

30

N

Coefficient of Correlation

Coefficient of correlation is a statistical technique, which measures the degree or

extent to which two or more variables fluctuate with reference to one another. Correlation

analysis helps in determining the degree of relationship between two variables but correlation

does not always imply cause and effect relationship

The coefficient of correlation is essentially the covariance taken not as an absolute

value but relative to the standard deviations of the individual securities. It indicates, in effect,

how much x and y vary together as a proportion of their combined individual variations,

measured by SD of x multiplied by SD of Y

Coefficient of correlation

=

2/12222

EXPECTED CONTRIBUTION

This study will be useful from the point of view of investors and portfolio managers

as tool for identifying the market volatility.

CHAPTER-III

31

ANALYSIS AND INTERPRETATION OF DATA

CHAPTER 3

ANALYSIS AND INTERPRETATION OF DATA

CALCULATION OF BETA

Formula used for the calculation of Beta and Standard Deviation Correlation Coefficient

This chapter provides the beta, coefficient of correlation and Volatility of shares of

ten companies.

Computation of Beta:

β = N

N

Market Return (X) = (Adj close – Open) / Open *100 (of sensex price)

Stock Return (Y) = (Adj close – open)/ Open *100 (of stock price)

32

NSE VALUE OF ICICI BANK

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)H - L C - O

4 May 2009  732.00  751.70  722.00  733.50  737.20  994539  20260  733,173,360  29.70  1.50 5 May 2009 725.00  739.80  714.55  733.35  725.47  1916509  29733  1,390,379,055 25.25  8.35 6 May 2009 737.00  749.50  716.20  722.50  733.92  1835316  30958  1,346,968,603 33.30  -14.50 7 May 2009 723.10  734.90  695.00  703.85  717.49  2180669  32285  1,564,597,731  39.90  -19.25 8 May 2009 712.85  722.80  684.00  713.75  700.73  2709386  47431  1,898,538,388 38.80  0.90 11May 2009 720.00  749.00  720.00  726.90  735.99  1735206  33729  1,277,093,435 29.00  6.90 12 May 2009 715.00  715.00  684.50  697.45  694.88  2479121  38022  1,722,680,412. 30.50  -17.55 13 May 2009 702.00  706.00  675.15  689.35  685.48  2029813  38175  1,391,402,877 30.85  -12.65 14 May 2009 700.00  713.35  691.10  698.70  703.45  1836787  33640  1,292,080,034 22.25  -1.30 15 May 2009 709.00  762.00  706.00  754.35  736.75  2387661  46361  1,759,105,821 56.00  45.35 18 May 2009 760.00  772.70  740.00  748.70  759.92  2124451  40048  1,614,414,839 32.70  -11.30 19 May 2009 753.75  754.90  716.25  722.00  731.73  1684010  29582  1,232,243,424 38.65  -31.75 20 May 2009 740.00  740.00  704.00  729.25  724.02  2018225  40888  1,461,239,312 36.00  -10.75 21 May 2009 732.50  744.00  720.00  731.70  731.51  1523633  31367  1,114,553,502 24.00  -0.80 22 May 2009 721.00  760.00  715.00  754.05  742.19  1838423  36514  1,364,451,911 45.00  33.05 25 May 2009 760.00  776.80  665.05  678.00  710.12  3565241  54796  2,531,761,953 111.75  -82.00 26 May 2009 683.00  713.00  683.00  695.00  697.77  2981209  39933  2,080,196,860 30.00  12.00 27 May 2009 685.00  685.00  642.55  654.55  657.56  2281854  39115  1,500,446,610 42.45  -30.45 28 May 2009 654.55  668.70  622.15  636.45  637.35  2072218  40461  1,320,723,603  46.55  -18.10 

Table 1.1 shows about the beta value of ICICI Bank

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

33

4 May 2009 732.00  733.50  3478.57 3654 5.04 0.20 1.00 25.405 May 2009 725.00  733.35  3664.50 3661.59 -0.07 1.15 -0.08 0.00496 May 2009 737.00  722.50  3662 3625.05 -1.00 -1.96 1.96 17 May 2009 723.10  703.85  3671.5 3683.90 0.34 -2.66 -0.90 0.118 May 2009 712.85  713.75  3681.80 3620.70 -1.66 0.12 -0.19 2.7611 May 2009 720.00  726.90  3615.75 3554.60 -1.69 0.95 -1.61 2.8612 May 2009 715.00  697.45  3554.65 3681.10 3.55 -2.45 -8.70 12.6013 May 2009 702.00  689.35  3668.75 3621.85 -1.27 -1.80 2.29 1.6114 May 2009 700.00  698.70  3631.90 3593.45 -1.05 -0.18 0.19 1.1015 May 2009 709.00  754.35  3595.85 3671.65 2.10 6.39 13.42 4.4118 May 2009 760.00  748.70  3673.15 4323.15 17.69 -1.48 -26.18 312.9319 May 2009 753.75  722.00  4324.95 4318.45 -0.15 -4.21 0.63 0.0220 May 2009 740.00  729.25  4318.75 4320.30 0.03 -1.45 -0.04 0.000921 May 2009 732.50  731.70  4217.30 4210.90 -0.15 -0.10 0.01 0.0222 May 2009 721.00  754.05  4211.85 4238.50 0.63 4.58 2.89 0.4025 May 2009 760.00  678.00  4213.10 4237.55 0.58 -10.78 -6.25 0.3426 May 2009 683.00  695.00  4239.55 4116.70 -2.89 1.75 -5.05 8.3527 May 2009 685.00  654.55  4117.30 4276.05 3.85 -4.44 -17.09 14.8228 May 2009 654.55  636.45  4276.15 4337.10 1.42 -2.76 -3.92 2.01

25.30 -19.13 -47.62 390.75

Calculation of Beta

β = N

N

β = -47.62 – (25.30) (19.13) / 390.75 – (25.30)2

β = 1.7

INTERPRETATION:

The above table shows as beta value is greater than one, so there is

high risk to the investor.

Chart 1.1 shows about the market return and stock return of

ICICI Bank

34

NSE VALUE OF ACC LTD

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)H - L C - O

35

4 May 2009  846.00  873.00  842.00  852.65  858.13  87061  2698  74,709,874.00  31.00  6.65 5 May 2009 848.00  858.00  826.10  853.15  843.01  96947  3003  81,726,853.00  31.90  5.15 6 May 2009 842.00  849.00  821.00  826.55  836.02  70282  2282  58,757,105.00  28.00  -15.45 7 May 2009 817.00  820.90  750.40  758.35  770.53  185848  5868  143,200,552.00  70.50  -58.65 8 May 2009 770.00  774.85  732.85  750.65  749.96  135378  4471  101,527,498.00  42.00  -19.35 11May 2009753. 760.00 772.90  733.25  740.50  755.20  99616  3227  75,229,956.00  39.65  -19.50 12 May 2009 729.80  750.00  709.00  744.55  729.90  123504  4506  90,145,384.00  41.00  14.75 13 May 2009 750.00  772.70  745.00  768.65  757.80  117866  3473  89,318,813.00  27.70  18.65 14 May 2009 777.00  788.95  763.50  781.95  778.03  114238  3517  88,880,536.00  25.45  4.95 15 May 2009 790.00  802.80  778.50  799.05  794.11  121787  3878  96,712,875.00  24.30  9.05 18 May 2009 805.00  812.20  783.15  794.00  797.24  103975  3309  82,893,273.00  29.05  -11.00 19 May 2009 801.00  808.70  763.10  768.90  783.20  95011  2875  74,412,628.00  45.60  -32.10 20 May 2009 760.00  774.80  743.35  763.90  755.22  140176  4484  105,863,483.00  31.45  3.90 21 May 2009 775.00  777.00  753.50  761.30  761.81  74164  2395  56,499,131.00  23.50  -13.70 22 May 2009 753.80  774.00  752.00  766.90  764.58  77288  2894  59,093,217.00  22.00  13.10 25 May 2009 770.00  774.00  720.00  723.80  741.64  140703  3716  104,350,718.00  54.00  -46.20 26 May 2009 727.00  770.00  720.00  762.45  743.76  217147  4581  161,506,086.00  50.00  35.45 27 May 2009 755.00  809.10  738.50  786.00  786.16  289472  8817  227,572,607.00  70.60  31.00 28 May 2009 796.00  796.00  774.00  782.50  784.96  219052  4258  171,947,064.00  22.00  -13.50 

Table 1.2 shows about the beta value of Acc Ltd

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 846.00  852.65  3478.57 3654 5.04 0.78 3.93 25.405 May 2009 848.00  853.15  3664.50 3661.59 -0.07 0.60 -0.04 0.00496 May 2009 842.00  826.55  3662 3625.05 -1.00 -1.83 1.83 17 May 2009 817.00  758.35  3671.5 3683.90 0.34 -7.17 -2.44 0.118 May 2009 770.00  750.65  3681.80 3620.70 -1.66 -2.51 4.17 2.7611 May 2009753. 760.00 740.50  3615.75 3554.60 -1.69 -2.56 4.33 2.8612 May 2009 729.80  744.55  3554.65 3681.10 3.55 2.02 7.17 12.6013 May 2009 750.00  768.65  3668.75 3621.85 -1.27 2.48 -3.15 1.6114 May 2009 777.00  781.95  3631.90 3593.45 -1.05 0.63 -0.66 1.1015 May 2009 790.00  799.05  3595.85 3671.65 2.10 1.14 2.39 4.4118 May 2009 805.00  794.00  3673.15 4323.15 17.69 -1.36 -24.05 312.9319 May 2009 801.00  768.90  4324.95 4318.45 -0.15 4.00 -0.6 0.0220 May 2009 760.00  763.90  4318.75 4320.30 0.03 0.51 0.01 0.000921 May 2009 775.00  761.30  4217.30 4210.90 -0.15 -1.76 0.26 0.0222 May 2009 753.80  766.90  4211.85 4238.50 0.63 1.73 1.08 0.4025 May 2009 770.00  723.80  4213.10 4237.55 0.58 -6.00 -3.48 0.3426 May 2009 727.00  762.45  4239.55 4116.70 -2.89 4.87 -14.07 8.3527 May 2009 755.00  786.00  4117.30 4276.05 3.85 4.10 15.79 14.8228 May 2009 796.00  782.50  4276.15 4337.10 1.42 1.70 2.41 2.01

25.30 1.37 -9.9 390.75

36

Calculation of Beta

β = N

N

β = -9.9 – (25.30) (1.37)/ 390.75 – (25.30)2

β = 0.17

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.2 shows about the market return and stock

return of Acc Ltd

37

NSE VALUE OF GUJARAT AMBUJA CEMENTS

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)

H - L C - O

4 May 2009  27.00  28.20  26.50  26.55  26.87  5830  55  156,666.00  1.70  -0.45 5 May 2009 26.00  26.00  25.55  25.95  25.89  7857  48  203,454.00  0.45  -0.05 6 May 2009 25.20  27.15  24.80  24.90  25.55  12613  79  322,266.00  2.35  -0.30 7 May 2009 24.30  24.35  23.70  23.70  23.86  6075  36  144,973.00  0.65  -0.60 

38

8 May 2009 23.50  23.50  22.55  22.55  22.75  3247  35  73,858.00  0.95  -0.95 11May 2009 22.50  22.50  21.45  21.50  21.77  13249  90  288,495.00  1.05  -1.00 12 May 2009 21.95  22.00  20.85  21.05  21.15  11363  48  240,345.00  1.15  -0.90 13 May 2009 21.00  21.90  20.60  21.00  21.07  17377  69  366,167.00  1.30  0.00 14 May 2009 21.75  21.75  20.00  20.15  20.62  19631  94  404,729.00  1.75  -1.60 15 May 2009 20.00  20.95  19.80  20.00  20.13  17577  60  353,892.00  1.15  0.00 18 May 2009 20.95  20.95  19.50  19.85  20.08  24123  105  484,465.00  1.45  -1.10 19 May 2009 20.10  20.75  19.60  19.80  19.92  10478  63  208,767.00  1.15  -0.30 20 May 2009 20.65  20.65  19.20  19.75  19.71  12086  88  238,198.00  1.45  -0.90 21 May 2009 20.00  20.00  19.15  19.85  19.88  13406  57  266,550.00  0.85  -0.15 22 May 2009 20.00  20.00  18.90  19.00  19.52  18912  97  369,107.00  1.10  -1.00 25 May 2009 19.95  19.95  19.05  19.15  19.76  13699  80  270,636.00  0.90  -0.80 26 May 2009 20.00  20.00  18.70  19.40  19.15  6539  38  125,204.00  1.30  -0.60 27 May 2009 18.50  19.20  18.45  18.45  18.74  4270  32  80,018.00  0.75  -0.05 28 May 2009 18.50  18.50  17.70  17.75  17.91  5291  53  94,756.00  0.80  -0.75 

Table 1.3 shows about the beta value of Gujarat

Ambuja Cements

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 27.00  26.55  3478.57 3654 5.04 -1.67 -8.41 25.405 May 2009 26.00  25.95  3664.50 3661.59 -0.07 -0.19 0.01 0.00496 May 2009 25.20  24.90  3662 3625.05 -1.00 -1.19 1.19 17 May 2009 24.30  23.70  3671.5 3683.90 0.34 -2.46 -0.83 0.118 May 2009 23.50  22.55  3681.80 3620.70 -1.66 -4.04 6.71 2.76

39

11 May 2009 22.50  21.50  3615.75 3554.60 -1.69 -4.44 7.50 2.8612 May 2009 21.95  21.05  3554.65 3681.10 3.55 -4.10 -14.55 12.6013 May 2009 21.00  21.00  3668.75 3621.85 -1.27 0 0 1.6114 May 2009 21.75  20.15  3631.90 3593.45 -1.05 -7.35 7.71 1.1015 May 2009 20.00  20.00  3595.85 3671.65 2.10 0 0 4.4118 May 2009 20.95  19.85  3673.15 4323.15 17.69 -5.25 -92.87 312.9319 May 2009 20.10  19.80  4324.95 4318.45 -0.15 -1.49 0.22 0.0220 May 2009 20.65  19.75  4318.75 4320.30 0.03 -4.35 0.13 0.000921 May 2009 20.00  19.85  4217.30 4210.90 -0.15 -0.75 0.11 0.0222 May 2009 20.00  19.00  4211.85 4238.50 0.63 -5.00 -3.15 0.4025 May 2009 19.95  19.15  4213.10 4237.55 0.58 -4.01 -2.32 0.3426 May 2009 20.00  19.40  4239.55 4116.70 -2.89 -3.00 8.67 8.3527 May 2009 18.50  18.45  4117.30 4276.05 3.85 -0.27 1.03 14.8228 May 2009 18.50  17.75  4276.15 4337.10 1.42 -4.05 5.75 2.01

25.30 -53.61 -83.10 390.75

Calculation of Beta

β = N

N

β = -83.10 – (25.30) (-53.61) / 390.75 – (25.30)2

β = 0.06

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.3 shows about the market return and stock return of

Gujarat Ambuja Cements

40

NSE VALUE OF INFOSYS

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No.ofShares

No.ofTrades

Total Turnover(Rs.)

* Spread (Rs.)H - L C - O

4 May 2009  1,724.95  1,775.00  1,690.00  1,720.35  1,722.40  143796  5090  247,674,354.00  85.00  -4.60 5 May 2009 1,702.00  1,733.75  1,685.35  1,724.15  1,712.40  83072  4208  142,252,089.00  48.40  22.15 

41

6 May 2009 1,740.00  1,744.70  1,672.00  1,710.50  1,707.58  159038  7219  271,569,474.00  72.70  -29.50 7 May 2009 1,710.00  1,760.00  1,694.00  1,721.45  1,736.62  166085  7004  288,427,038.00  66.00  11.45 8 May 2009 1,725.00  1,785.00  1,720.00  1,771.10  1,761.71  147777  7251  260,339,952.00  65.00  46.10 11May 2009 1,775.00  1,790.00  1,749.15  1,765.75  1,770.49  99748  4624  176,602,767.00  40.85  -9.25 12 May 2009 1,699.00  1,770.00  1,699.00  1,746.05  1,744.62  178176  5096  310,848,898.00  71.00  47.05 13 May 2009 1,751.10  1,773.90  1,722.20  1,759.15  1,748.00  109492  4409  191,391,536.00  51.70  8.05 14 May 2009 1,780.00  1,797.70  1,746.05  1,757.75  1,776.61  97423  4971  173,082,848.00  51.65  -22.25 15 May 2009 1,770.00  1,838.70  1,752.35  1,826.75  1,798.41  216841  10615  389,968,997.00  86.35  56.75 18 May 2009 1,820.20  1,830.00  1,772.55  1,783.75  1,794.04  136266  5958  244,466,061.00  57.45  -36.45 19 May 2009 1,785.05  1,799.00  1,760.00  1,776.90  1,777.59  115372  4205  205,083,638.00  39.00  -8.15 20 May 2009 1,776.80  1,812.90  1,771.05  1,796.70  1,791.91  99230  4475  177,811,131.00  41.85  19.90 21 May 2009 1,785.00  1,800.00  1,765.00  1,795.90  1,779.14  76312  3030  135,770,045.00  35.00  10.90 22 May 2009 1,780.00  1,810.00  1,750.00  1,800.90  1,774.98  111967  4144  198,739,392.00  60.00  20.90 25 May 2009 1,799.95  1,819.00  1,750.00  1,760.00  1,771.31  208007  5603  368,444,368.00  69.00  -39.95 26 May 2009 1,770.00  1,775.00  1,726.00  1,739.20  1,752.87  144282  4159  252,908,165.00  49.00  -30.80 27 May 2009 1,725.00  1,733.00  1,688.00  1,705.70  1,707.18  225767  4670  385,425,028.00  45.00  -19.30 28 May 2009 1,708.00  1,712.00  1,670.00  1,676.75 1,688.48  201347  5109  339,971,094.00  42.00  -31.25 

Table 1.4 shows about the beta values of Infosys

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 1,724.95  1,720.35  3478.57 3654 5.04 -0.26 -1.31 25.405 May 2009 1,702.00  1,724.15  3664.50 3661.59 -0.07 1.30 -0.09 0.00496 May 2009 1,740.00  1,710.50  3662 3625.05 -1.00 -1.70 1.70 17 May 2009 1,710.00  1,721.45  3671.5 3683.90 0.34 0.66 0.22 0.118 May 2009 1,725.00  1,771.10  3681.80 3620.70 -1.66 2.67 4.43 2.7611 May 2009 1,775.00  1,765.75  3615.75 3554.60 -1.69 -0.52 0.87 2.8612 May 2009 1,699.00  1,746.05  3554.65 3681.10 3.55 2.76 9.79 12.6013 May 2009 1,751.10  1,759.15  3668.75 3621.85 -1.27 0.45 0.57 1.6114 May 2009 1,780.00  1,757.75  3631.90 3593.45 -1.05 -1.25 1.31 1.1015 May 2009 1,770.00  1,826.75  3595.85 3671.65 2.10 3.20 6.72 4.4118 May 2009 1,820.20  1,783.75  3673.15 4323.15 17.69 2.00 35.38 312.9319 May 2009 1,785.05  1,776.90  4324.95 4318.45 -0.15 -0.45 0.06 0.0220 May 2009 1,776.80  1,796.70  4318.75 4320.30 0.03 1.11 0.03 0.000921 May 2009 1,785.00  1,795.90  4217.30 4210.90 -0.15 0.61 0.09 0.0222 May 2009 1,780.00  1,800.90  4211.85 4238.50 0.63 1.17 0.73 0.4025 May 2009 1,799.95  1,760.00  4213.10 4237.55 0.58 -2.21 -1.28 0.3426 May 2009 1,770.00  1,739.20  4239.55 4116.70 -2.89 -1.74 5.02 8.3527 May 2009 1,725.00  1,705.70  4117.30 4276.05 3.85 -1.11 -4.27 14.8228 May 2009 1,708.00  1,676.75  4276.15 4337.10 1.42 1.82 2.58 2.01

25.30 8.52 62.55 390.75

Calculation of Beta

β = N

N

42

β = 62.55 – (25.30) (8.52) / 390.75 – (25.30)2

β = 0.61

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.4 shows about the market return and stock

return of Infosys

43

NSE VALUE OF Indian Oil Corporation

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)

H - L C - O

4 May 2009  500.00  567.90  500.00  562.45  557.50  224082  4050  124,925,787.00  67.90  62.45 5 May 2009 562.00  578.00  561.00  572.85  570.95  171502  4259  97,918,449.00  17.00  10.85 6 May 2009 570.00  574.70  558.00  562.95  565.75  208085  2398  117,724,785.00  16.70  -7.05 7 May 2009 565.05  570.00  538.00  550.55  549.92  140339  2804  77,175,014.00  32.00  -14.50 8 May 2009 555.00  559.35  541.15  551.80  550.14  153267  1744  84,318,363.00  18.20  -3.20 11May 2009 553.00  556.00  538.35  545.45  544.45  208390  3693  113,457,861.00  17.65  -7.55 12 May 2009 540.00  554.00  540.00  544.95  547.12  116120  2541  63,531,527.00  14.00  4.95 13 May 2009 548.00  551.00  540.00  542.75  544.28  52918  1379  28,802,417.00  11.00  -5.25 14 May 2009 550.00  552.00  526.10  534.55  544.37  103385  1709  56,279,452.00  25.90  -15.45 15 May 2009 535.00  541.90  533.00  537.90  537.20  50896  1165  27,341,549.00  8.90  2.90 18 May 2009 545.00  559.00  539.00  545.40  551.05  98602  2601  54,334,373.00  20.00  0.40 19 May 2009 550.00  550.50  525.15  532.05  536.81  322980  1997  173,378,775.00  25.35  -17.95 20 May 2009 534.00  547.00  523.10  541.20  539.08  240516  2944  129,658,350.00  23.90  7.20 21 May 2009 520.00  567.00  520.00  549.35  553.63  265804  8272  147,157,228.00  47.00  29.35 22 May 2009 552.00  565.00  545.25  562.60  557.94  169482  4577  94,561,013.00  19.75  10.60 25 May 2009 568.00  571.00  531.00  540.75  551.26  98452  2949  54,272,819.00  40.00  -27.25 26 May 2009 550.00  551.00  535.50  541.50  541.26  45535  1162  24,646,175.00  15.50  -8.50 27 May 2009 544.00  574.70  536.00  562.35  559.58  234175  6498  131,039,699.00  38.70  18.35 28 May 2009 562.00  573.00  554.00  565.60  567.09  131525  3767  74,586,013.00  19.00  3.60 

Table 1.5 shows about the beta values of Indian oil Corporation

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 500.00  562.45  3478.57 3654 5.04 12.49 62.94 25.405 May 2009 562.00  572.85  3664.50 3661.59 -0.07 1.93 0.13 0.00496 May 2009 570.00  562.95  3662 3625.05 -1.00 -1.23 1.23 17 May 2009 565.05  550.55  3671.5 3683.90 0.34 -2.56 -0.87 0.11

44

8 May 2009 555.00  551.80  3681.80 3620.70 -1.66 -0.57 0.94 2.7611 May 2009 553.00  545.45  3615.75 3554.60 -1.69 -1.36 2.29 2.8612 May 2009 540.00  544.95  3554.65 3681.10 3.55 0.91 3.23 12.6013 May 2009 548.00  542.75  3668.75 3621.85 -1.27 -0.95 1.20 1.6114 May 2009 550.00  534.55  3631.90 3593.45 -1.05 -2.80 2.94 1.1015 May 2009 535.00  537.90  3595.85 3671.65 2.10 0.54 1.13 4.4118 May 2009 545.00  545.40  3673.15 4323.15 17.69 0.0007 0.01 312.9319 May 2009 550.00  532.05  4324.95 4318.45 -0.15 -3.26 0.48 0.0220 May 2009 534.00  541.20  4318.75 4320.30 0.03 1.34 0.04 0.000921 May 2009 520.00  549.35  4217.30 4210.90 -0.15 5.64 0.84 0.0222 May 2009 552.00  562.60  4211.85 4238.50 0.63 1.92 1.20 0.4025 May 2009 568.00  540.75  4213.10 4237.55 0.58 -4.79 -2.77 0.3426 May 2009 550.00  541.50  4239.55 4116.70 -2.89 -0.01 0.02 8.3527 May 2009 544.00  562.35  4117.30 4276.05 3.85 3.37 12.97 14.8228 May 2009 562.00  565.60  4276.15 4337.10 1.42 0.64 0.90 2.01

25.30 11.25 88.85 390.75

Calculation of Beta

β = N

N

β = 88.85 – (25.3) (11.25) / 390.75 – (25.30)2

β = 0.78

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.5 shows about the market return and stock return of

Indian Oil Corporation

45

NSE VALUE OF NAGARJUNA CONSTRUCTION

COMPANY LIMITED

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)H - L C - O

4 May 2009  134.00  139.90  127.85  130.95  133.72  486920  4843  65,112,684.00  12.05  -3.05 5 May 2009 127.85  135.45  124.00  133.05  131.72  348807  3379  45,944,609.00  .45  5.20 6 May 2009 130.00  136.90  124.00  126.90  132.05  387299  3734  51,141,579.00  12.90  -3.10 7 May 2009 127.00  128.70  116.00  122.70  123.08  241103  2876  29,673,940.00  12.70  -4.30 8 May 2009 126.35  126.90  116.15  120.95  121.61  438403  3333  53,315,699.00  10.75  -5.40 11May 2009 122.90  125.65  120.25  121.55  123.52  333395  3312  41,181,932.00  5.40  -1.35 12 May 2009 116.50  122.65  116.00  121.00  120.59  266860  2294  32,180,993.00  6.65  4.50 13 May 2009 122.95  127.40  120.00  124.85  124.91  505581  3982  63,152,207.00  7.40  1.90 

46

14 May 2009 126.30  133.00  125.40  128.90  129.01  481524  4885  62,119,237.00  7.60  2.60 15 May 2009 131.00  138.00  125.25  136.35  132.84  723203  6546  96,067,615.00  12.75  5.35 18 May 2009 139.00  146.50  137.50  142.80  142.46  1208137  9772  172,112,160.00  9.00  3.80 19 May 2009 145.70  145.80  132.80  134.80  139.55  402249  4227  56,132,292.00  13.00  -10.90 20 May 2009 135.00  140.10  131.00  137.40  136.44  581768  6468  79,373,945.00  9.10  2.40 21 May 2009 138.90  138.90  133.55  137.50  136.77  228723  2600  31,281,838.00  5.35  -1.40 22 May 2009 137.00  141.60  134.00  140.25  138.74  572262  3944  79,398,253.00  7.60  3.25 25 May 2009 141.45  144.30  125.35  128.65  137.55  408446  4491  56,180,996.00  18.95  -12.80 26 May 2009 128.40  135.50  126.55  132.65  131.13  218297  3101  28,625,836.00  8.95  4.25 27 May 2009 130.00  130.90  120.50  126.20  125.21  538272  4249  67,398,687.00  10.40  -3.80 28 May 2009 125.50  133.50  125.00  130.25  128.96  548982  3460  70,795,705.00  8.50  4.75 

Table 1.6 shows about the beta values of Nagarjuna Construction Company Limited

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 134.00 130.95 3478.57 3654 5.04 -2.27 -11.44 25.405 May 2009 127.85 133.05 3664.50 3661.59 -0.07 4.06 -0.28 0.00496 May 2009 130.00 126.90 3662 3625.05 -1.00 -2.38 2.38 17 May 2009 127.00 122.70 3671.5 3683.90 0.34 -3.38 -1.14 0.118 May 2009 126.35 120.95 3681.80 3620.70 -1.66 -4.27 7.08 2.7611 May 2009 122.90 121.55 3615.75 3554.60 -1.69 -1.09 1.84 2.8612 May 2009 116.50 121.00 3554.65 3681.10 3.55 3.86 13.70 12.6013 May 2009 122.95 124.85 3668.75 3621.85 -1.27 1.54 1.95 1.6114 May 2009 126.30 128.90 3631.90 3593.45 -1.05 2.05 -2.15 1.1015 May 2009 131.00 136.35 3595.85 3671.65 2.10 4.08 8.56 4.4118 May 2009 139.00 142.80 3673.15 4323.15 17.69 2.73 48.29 312.9319 May 2009 145.70 134.80 4324.95 4318.45 -0.15 -7.48 1.07 0.0220 May 2009 135.00 137.40 4318.75 4320.30 0.03 1.78 0.05 0.000921 May 2009 138.90 137.50 4217.30 4210.90 -0.15 -1 0.15 0.0222 May 2009 137.00 140.25 4211.85 4238.50 0.63 2.37 1.50 0.4025 May 2009 141.45 128.65 4213.10 4237.55 0.58 -9.04 -5.24 0.3426 May 2009 128.40 132.65 4239.55 4116.70 -2.89 3.30 -9.53 8.3527 May 2009 130.00 126.20 4117.30 4276.05 3.85 -2.92 -11.24 14.8228 May 2009 125.50 130.25 4276.15 4337.10 1.42 3.78 5.36 2.01

25.30 -2.28 48.63 390.75

47

Calculation of Beta

β = N

N

β = 48.63 – (25.30) (-2.28) / 390.75 – (25.30)

β = 0.42

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.6 shows about the market return and stock return of

Nagarjuna Construction Company Limited

48

NSE VALUE OF OIL AND NATURAL GAS CORPPORATION

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)H - L C - O

4 May 2009  1,112.00  1,167.00  1,093.50  1,123.10  1,142.52  261432  6788  298,690,383.00  73.50  11.10 5 May 2009 1,100.00  1,138.00  1,100.00  1,124.55  1,121.68  136586  5469  153,205,370.00  38.00  24.55 6 May 2009 1,130.00  1,130.00  1,052.10  1,064.25  1,091.14  345263  7998  376,730,200.00  77.90  -65.75 7 May 2009 1,050.00  1,077.00  1,001.10  1,012.40  1,032.76  508818  9490  525,486,186.00  75.90  -37.60 8 May 2009 1,000.00  1,020.00  973.30  1,010.05  994.90  512227  15256  509,615,455.00  46.70  10.05 11May 2009 1,017.00  1,019.00  971.25  993.70  989.08  505153  11161  499,638,099.00  47.75  -23.30 12 May 2009 980.00  1,042.65  978.90  1,026.45  1,019.48  523748  14938  533,948,859.00  63.75  46.45 13 May 2009 1,034.00  1,056.00  1,027.00  1,051.00  1,042.83  346784  11792  361,635,166.00  29.00  17.00 14 May 2009 1,045.25  1,052.00  1,005.00  1,025.20  1,022.85  485239  11092  496,326,552.00  47.00  -20.05 15 May 2009 1,035.00  1,048.00  1,009.00  1,040.90  1,026.00  327640  8294  336,157,274.00  39.00  5.90 18 May 2009 1,055.00  1,088.70  1,041.15  1,068.05  1,070.30  215485  6678  230,633,257.00  47.55  13.05 19 May 2009 1,078.00  1,089.00  1,062.50  1,067.10  1,074.11  308004  7416  330,828,816.00  26.50  -10.90 20 May 2009 1,067.00  1,083.00  1,046.00  1,052.60  1,054.17  263921  5579  278,218,795.00  37.00  -14.40 21 May 2009 1,081.10  1,155.70  1,076.10  1,126.45  1,125.75  1922749  33992  2,164,539,961.00  79.60  45.35 22 May 2009 1,104.00  1,140.50  1,091.15  1,134.65  1,125.51  806485  13564  907,706,231.00  49.35  30.65 25 May 2009 1,145.00  1,150.00  1,054.00  1,070.35  1,095.42  546666  12031  598,826,725.00  96.00  -74.65 26 May 2009 1,080.50  1,080.50  1,030.00  1,049.95  1,048.64  295532  7706  309,907,109.00  50.50  -30.55 27 May 2009 1,049.95  1,055.00  996.00  1,009.15  1,016.44  259033  7608  263,291,092.00  59.00  -40.80 28 May 2009 1,025.00  1,029.00  990.00  998.95  999.34  196290  5972  196,159,684.00  39.00  -26.05 

Table 1.7 shows about the beta values of Oil and Natural

Gas Corporation

49

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 1,112.00  1,123.10  3478.57 3654 5.04 0.99 4.98 25.405 May 2009 1,100.00  1,124.55  3664.50 3661.59 -0.07 2.23 -0.15 0.00496 May 2009 1,130.00  1,064.25  3662 3625.05 -1.00 -5.81 5.81 17 May 2009 1,050.00  1,012.40  3671.5 3683.90 0.34 -3.58 -1.21 0.118 May 2009 1,000.00  1,010.05  3681.80 3620.70 -1.66 1 -1.66 2.7611 May 2009 1,017.00  993.70  3615.75 3554.60 -1.69 2.29 -3.87 2.8612 May 2009 980.00  1,026.45  3554.65 3681.10 3.55 4.73 16.79 12.6013 May 2009 1,034.00  1,051.00  3668.75 3621.85 -1.27 1.64 -2.08 1.6114 May 2009 1,045.25  1,025.20  3631.90 3593.45 -1.05 -1.91 2.00 1.1015 May 2009 1,035.00  1,040.90  3595.85 3671.65 2.10 0.57 1.197 4.4118 May 2009 1,055.00  1,068.05  3673.15 4323.15 17.69 1.23 21.75 312.9319 May 2009 1,078.00  1,067.10  4324.95 4318.45 -0.15 -1.01 0.15 0.0220 May 2009 1,067.00  1,052.60  4318.75 4320.30 0.03 -1.34 -0.04 0.000921 May 2009 1,081.10  1,126.45  4217.30 4210.90 -0.15 4.31 -0.64 0.0222 May 2009 1,104.00  1,134.65  4211.85 4238.50 0.63 2.77 1.74 0.4025 May 2009 1,145.00  1,070.35  4213.10 4237.55 0.58 -6.51 -3.77 0.3426 May 2009 1,080.50  1,049.95  4239.55 4116.70 -2.89 -2.82 8.14 8.3527 May 2009 1,049.95  1,009.15  4117.30 4276.05 3.85 -3.88 -14.93 14.8228 May 2009 1,025.00  998.95  4276.15 4337.10 1.42 -2.54 -3.6 2.01

25.30 -6.83 30.6 390.75

Calculation of Beta

β = N

N

β = 30.60 – (25.30) (-6.83) / 390.75 – (25.30)2

β = 0.57

INTERPRETATION:

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.7 shows about the market return and stock return of

Oil and Natural Gas Corporation

50

NSE VALUE OF STATE BANK OF INDIA

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)

H - L C - O

4 May 2009  1,623.90  1,673.70  1,612.00  1,642.00  1,650.71  544000  21704  897,987,353.00  61.70  18.105 May 2009 1,634.00  1,722.00  1,620.00  1,714.10  1,693.61  736347  30740  1,247,086,537.00  102.00  80.106 May 2009 1,725.00  1,725.00  1,654.50  1,663.40  1,685.65  640633  22197  1,079,885,099.00  70.50  -61.607 May 2009 1,672.00  1,729.00  1,660.00  1,702.20  1,696.55  843253  32376  1,430,624,781.00  69.00  30.208 May 2009 1,725.00  1,744.90  1,680.00  1,724.35  1,715.76  624982  27302  1,072,320,825.00  64.90  -0.6511May 2009 1,735.00  1,759.50  1,686.10  1,694.75  1,720.12  629308  23981  1,082,488,153.00  73.40  -40.2512 May 2009 1,694.70  1,724.00  1,663.00  1,708.35  1,701.07  592613  24067  1,008,074,194.00  61.00  13.6513 May 2009 1,725.00  1,731.00  1,696.00  1,716.50  1,712.74  400117  16095  685,296,153.00  35.00  -8.5014 May 2009 1,735.00  1,740.00  1,697.15  1,704.30  1,717.90  502872  19269  863,883,812.00  42.85  -30.7015 May 2009 1,715.00  1,759.90  1,692.60  1,748.95  1,725.91  533863  21614  921,397,735.00  67.30  33.9518 May 2009 1,760.00  1,777.60  1,737.00  1,765.10  1,762.36  517919  19447  912,759,103.00  40.60  5.10 19 May 2009 1,780.00  1,781.70  1,735.60  1,742.05  1,755.19  487124  16350  854,993,950.00  46.10  -37.95

51

20 May 2009 1,737.90  1,792.00  1,724.00  1,779.80  1,765.44  536145  19617  946,532,128.00  68.00  41.9021 May 2009 1,791.00  1,794.40  1,734.15  1,758.90  1,754.91  412677  15522  724,212,556.00  60.25  -32.1022 May 2009 1,754.00  1,820.00  1,740.05  1,810.65  1,792.46  588701  21190  1,055,225,462.00  79.95  56.6525 May 2009 1,815.00  1,840.00  1,635.00  1,655.00  1,713.85  1156976  39979  1,982,878,708.00  205.00  -160.0026 May 2009 1,670.00  1,694.60  1,616.55  1,636.35  1,641.78  846044  21996  1,389,018,496.00  78.05  -33.6527 May 2009 1,630.00  1,630.00  1,570.15  1,587.00  1,589.73  671593  25395  1,067,651,575.00  59.85  -43.0028 May 2009 1,580.00  1,624.80  1,570.60  1,601.95  1,601.03  550159  24355  880,819,568.00  54.20  21.95

Table 1.8 shows about the beta values of State Bank of India

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 1,623.90  1,642.00  3478.57 3654 5.04 1.11 5.59 25.405 May 2009 1,634.00  1,714.10  3664.50 3661.59 -0.07 4.90 -0.34 0.00496 May 2009 1,725.00  1,663.40  3662 3625.05 -1.00 -3.57 3.57 17 May 2009 1,672.00  1,702.20  3671.5 3683.90 0.34 1.80 0.61 0.118 May 2009 1,725.00  1,724.35  3681.80 3620.70 -1.66 -0.03 0.04 2.7611 May 2009 1,735.00  1,694.75  3615.75 3554.60 -1.69 -2.31 3.90 2.8612 May 2009 1,694.70  1,708.35  3554.65 3681.10 3.55 0.80 2.84 12.6013 May 2009 1,725.00  1,716.50  3668.75 3621.85 -1.27 -0.49 0.62 1.6114 May 2009 1,735.00  1,704.30  3631.90 3593.45 -1.05 -1.76 1.84 1.1015 May 2009 1,715.00  1,748.95  3595.85 3671.65 2.10 1.97 4.13 4.4118 May 2009 1,760.00  1,765.10  3673.15 4323.15 17.69 0.28 4.95 312.9319 May 2009 1,780.00  1,742.05  4324.95 4318.45 -0.15 -2.13 0.31 0.0220 May 2009 1,737.90  1,779.80  4318.75 4320.30 0.03 2.41 0.07 0.000921 May 2009 1,791.00  1,758.90  4217.30 4210.90 -0.15 -1.79 0.26 0.0222 May 2009 1,754.00  1,810.65  4211.85 4238.50 0.63 3.22 2.02 0.4025 May 2009 1,815.00  1,655.00  4213.10 4237.55 0.58 -8.81 -5.10 0.3426 May 2009 1,670.00  1,636.35  4239.55 4116.70 -2.89 -2.01 5.80 8.3527 May 2009 1,630.00  1,587.00  4117.30 4276.05 3.85 -2.63 -10.12 14.8228 May 2009 1,580.00  1,601.95  4276.15 4337.10 1.42 1.38 0.04 2.01

25.30 -7.66 20.35 390.75

Calculation of Beta

β = N

N

β = 20.35 – (25.30) (-7.66) / 390.75 – (20.35)2

β = 0.69

INTERPRETATION:

52

The above table shows as beta value is less than one, so there is less

risk to the investor.

Chart 1.8 shows about the market return and stock return of

State Bank of India

53

NSE VALUE OF TATA CONSULTANCY SERVICES

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)

H - L C - O

4 May 2009  764.00  785.00  764.00  778.60  774.86  339566  6548  263,117,223.00  21.00  14.60 5 May 2009 392.70  393.00  370.05  389.80  385.28  435141  10302  167,649,007.00  22.95  -2.90 6 May 2009 380.00  394.90  375.30  379.00  381.12  458299  9571  174,667,395.00  19.60  -1.00 7 May 2009 370.00  393.50  370.00  379.75  383.59  321161  7799  123,195,238.00  23.50  9.75 8 May 2009 383.00  392.40  374.50  380.85  385.39  349964  7116  134,873,368.00  17.90  -2.15 11May 2009 387.80  388.00  368.00  369.75  377.51  372042  9414  140,449,227.00  20.00  -18.05 12 May 2009 360.00  377.00  355.25  366.20  368.03  400450  6930  147,378,889.00  21.75  6.20 13 May 2009 367.00  387.70  360.60  382.05  376.15  406331  8476  152,840,199.00  27.10  15.05 14 May 2009 384.00  391.95  373.30  380.35  385.80  456652  7345  176,174,709.00  18.65  -3.65 15 May 2009 375.00  402.40  375.00  396.90  389.21  511628  9241  199,131,115.00  27.40  21.90 18 May 2009 402.00  402.00  384.00  385.90  390.68  656652  8773  256,537,546.00  18.00  -16.10 19 May 2009 380.00  397.90  380.00  389.70  391.45  632618  9301  247,640,153.00  17.90  9.70 20 May 2009 380.00  399.60  380.00  392.35  389.29  343883  6927  133,869,870.00  19.60  12.35 21 May 2009 385.00  396.00  383.00  390.15  387.54  313459  4490  121,477,077.00  13.00  5.15 22 May 2009 385.00  394.00  385.00  391.40  389.50  197265  4068  76,835,669.00  9.00  6.40 25 May 2009 394.50  397.95  378.20  381.60  387.03  444835  6602  172,165,181.00  19.75  -12.90 26 May 2009 383.00  393.05  381.05  389.00  387.00  329007  5715  127,324,828.00  12.00  6.00 27 May 2009 385.00  386.00  368.00  380.05  376.62  652210  7629  245,636,349.00  18.00  -4.95 28 May 2009 381.00  390.90  375.00  388.60  385.07  352803  6408  135,853,454.00  15.90  7.60 

Table 1.9 shows about the beta values of Tata Consultancy services

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

54

4 May 2009 764.00  778.60  3478.57 3654 5.04 1.91 9.62 25.405 May 2009 392.70  389.80  3664.50 3661.59 -0.07 -0.73 0.05 0.00496 May 2009 380.00  379.00  3662 3625.05 -1.00 -0.26 0.26 17 May 2009 370.00  379.75  3671.5 3683.90 0.34 2.63 0.89 0.118 May 2009 383.00  380.85  3681.80 3620.70 -1.66 -0.005 0.008 2.7611 May 2009 387.80  369.75  3615.75 3554.60 -1.69 -4.65 7.85 2.8612 May 2009 360.00  366.20  3554.65 3681.10 3.55 1.72 6.10 12.6013 May 2009 367.00  382.05  3668.75 3621.85 -1.27 4.10 -5.20 1.6114 May 2009 384.00  380.35  3631.90 3593.45 -1.05 -0.95 0.99 1.1015 May 2009 375.00  396.90  3595.85 3671.65 2.10 5.84 12.26 4.4118 May 2009 402.00  385.90  3673.15 4323.15 17.69 -4 -70.76 312.9319 May 2009 380.00  389.70  4324.95 4318.45 -0.15 2.55 0.38 0.0220 May 2009 380.00  392.35  4318.75 4320.30 0.03 3.25 0.09 0.000921 May 2009 385.00  390.15  4217.30 4210.90 -0.15 1.33 -0.19 0.0222 May 2009 385.00  391.40  4211.85 4238.50 0.63 1.66 1.04 0.4025 May 2009 394.50  381.60  4213.10 4237.55 0.58 -3.26 1.89 0.3426 May 2009 383.00  389.00  4239.55 4116.70 -2.89 1.56 -4.5 8.3527 May 2009 385.00  380.05  4117.30 4276.05 3.85 -1.28 -4.92 14.8228 May 2009 381.00  388.60  4276.15 4337.10 1.42 1.99 2.82 2.01

25.30 13.40 -36.81 390.75

Calculation of Beta

β = N

N

β = -36.81 – (25.3) (13.4) / 390.75 – (25.30)2

β = 1.50

INTERPRETATION:

The above table shows as beta value is less than one, so

there is less risk to the investor.

Chart 1.9 shows about the market return and stock return of

Tata Consultancy services

55

NSE VALUE OF GAMMON INDIA LIMITED

Date Open Price

High Price

Low Price

Close Price

Weighted AveragePrice

No. ofShares

No. ofTrades

Total Turnover(Rs.)

* Spread (Rs.)

H - L C - O

4 May 2009  844.45  865.00  820.00  829.05  832.52  371  60  308,864.00  45.00  -15.40 5 May 2009 806.00  830.00  806.00  820.50  817.61  797  63  651,636.00  24.00  14.50 6 May 2009 827.00  859.00  813.00  818.30  830.18  1533  130  1,272,665.00  46.00  -8.70 7 May 2009 819.00  824.00  800.00  806.30  808.03  786  62  635,113.00  24.00  -12.70 

56

8 May 2009 810.00  817.00  806.00  807.10  808.97  30  13  24,269.00  11.00  -2.90 11May 2009 805.00  825.00  805.00  808.10  810.42  504  50  408,451.00  20.00  3.10 12 May 2009 815.00  815.00  788.00  802.50  801.84  1252  83  1,003,909.00  27.00  -12.50 13 May 2009 795.15  819.95  795.15  812.00  809.24  1385  44  1,120,802.00  24.80  16.85 14 May 2009 810.00  811.00  795.15  799.10  801.89  1208  43  968,679.00  15.85  -10.90 15 May 2009 799.95  800.00  789.00  790.60  794.83  939  81  746,343.00  11.00  -9.35 18 May 2009 799.00  799.00  766.75  771.75  774.79  2645  149  2,049,317.00  32.25  -27.25 19 May 2009 779.95  824.00  771.75  792.05  801.37  872  158  698,792.00  52.25  12.10 20 May 2009 796.00  864.00  796.00  817.50  834.47  4584  506  3,825,213.00  68.00  21.50 21 May 2009 818.05  834.00  803.65  809.40  820.84  1381  108  1,133,584.00  30.35  -8.65 22 May 2009 819.95  819.95  805.00  808.65  807.80  162  20  130,864.00  14.95  -11.30 25 May 2009 819.00  827.95  776.00  784.50  801.66  1414  125  1,133,548.00  51.95  -34.50 26 May 2009 782.00  859.00  781.20  827.25  835.49  5441  484  4,545,894.00  77.80  45.25 27 May 2009 824.95  830.00  800.05  820.40  815.26  1313  107  1,070,433.00  29.95  -4.55 28 May 2009 829.00  832.00  816.00  828.20  823.04  773  45  636,211.00  16.00  -0.80 

Table 1.10 shows about the beta values of Gammon India Limited

DATE OPEN CLOSE OPEN CLOSE MR(X) SR(Y) XY X2

4 May 2009 844.45  829.05  3478.57 3654 5.04 -1.82 -9.17 25.405 May 2009 806.00  820.50  3664.50 3661.59 -0.07 1.79 -0.12 0.00496 May 2009 827.00  818.30  3662 3625.05 -1.00 -1.05 1.05 17 May 2009 819.00  806.30  3671.5 3683.90 0.34 1.55 0.52 0.118 May 2009 810.00  807.10  3681.80 3620.70 -1.66 -0.35 0.58 2.7611 May 2009 805.00  808.10  3615.75 3554.60 -1.69 0.38 -0.64 2.8612 May 2009 815.00  802.50  3554.65 3681.10 3.55 -1.53 -5.43 12.6013 May 2009 795.15  812.00  3668.75 3621.85 -1.27 2.11 2.67 1.6114 May 2009 810.00  799.10  3631.90 3593.45 -1.05 -1.34 1.40 1.1015 May 2009 799.95  790.60  3595.85 3671.65 2.10 -1.16 -2.43 4.4118 May 2009 799.00  771.75  3673.15 4323.15 17.69 -3.41 -60.32 312.9319 May 2009 779.95  792.05  4324.95 4318.45 -0.15 1.55 -9.67 0.0220 May 2009 796.00  817.50  4318.75 4320.30 0.03 2.70 8.1 0.000921 May 2009 818.05  809.40  4217.30 4210.90 -0.15 -1.05 15.75 0.0222 May 2009 819.95  808.65  4211.85 4238.50 0.63 -1.37 -0.86 0.4025 May 2009 819.00  784.50  4213.10 4237.55 0.58 -4.21 -2.44 0.3426 May 2009 782.00  827.25  4239.55 4116.70 -2.89 5.78 -16.70 8.35

57

27 May 2009 824.95  820.40  4117.30 4276.05 3.85 -0.55 -2.11 14.8228 May 2009 829.00  828.20  4276.15 4337.10 1.42 -0.09 -0.12 2.01

25.30 -2.07 -62.50 390.75

Calculation of Beta

β = N

N

β = -62.50 – (25.30) (-2.07) / 390.75 - (25.30)2

β = 0.46

INTERPRETATION:

The above table shows as beta value is less than,one, so there is less

risk to the investor.

Chart 1.10 shows about the market return and stock

return of Gammon India Limited

58

CHAPTER-IV

FINDINGS & SUGGESSTIONS

CHAPTER 4

59

FINDINGS

From the analysis of table, most of the investors were in low risk with their

investment.

From the analysis of table there is ups and downs in market return and stock return.

From the analysis the investors are in risk with two companies of their investment.

From the analysis of table the beta value should be less than one so the investors are

with low risk.

From the analysis of table the investors are not met with high risk.

SUGGESSTIONS

The investors should invest their money in good company shares.

The investor should analyse that which gives maximum profit with low risk.

The investors should invest in different shares so they can compensate with their loss

in profit shares.

They could make good profit with less minimum of risk.

They can invest their shares in bank also to get maximum return.

CHAPTER-V

CONCLUSION

60

CHAPTER 5

CONCLUSION

The study on portfolio construction of Gupta Equities Coimbatore reveals that

there is a slight risk facing an investors where discomfort is felt. They can arrange it more

favourable to maintain the return value.

They can enable to contribute to increase the level of income from the investors

current level. Hence investing in different share will reduce risk and in increases the return.

BIBLIOGRAPHY

A. BOOKS

1. Dr. Gurusamy S., "Capital Markets", Vijay Nicole Imprints Pvt. Ltd., 2006.

2. Gupta S.P., "Statistical Method", Sultan Chand and Sons, New Delhi, 2000.

3. Kothari C.R., "Research Methodology", Vishwa Prakasam, New Delhi, 1996 edition.

61

4. Memoria C.B., "Marketing Management", Kitab Mahal, Allahabad, 1998.

5. Philip Kotler, "Marketing Management", Pearson Education (Singapore) Pvt. Ltd.,

New Delhi, 2003.

6. Preeti Singh, "Investment Management Security analysis and portfolio management",

Himalaya Publishing House, Mumbai, 2006.