A Study on Sectoral Analysis Using Nifty

8/6/2019 A Study on Sectoral Analysis Using Nifty

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NATURE OF THE BUSINESS CARRIED

Sharekhan is a broking company. The company offers a complete range of pre

trade, trade and post trade service on the BSE (Bombay Stock Exchange) and

the NSE (National Stock exchange). Whether the client come in to the

company¶s conventionally located officers and trade in a dedicated ambience

or issue instructions over the phone, our highly trained team sophisticated

equipment ensure smooth transactions and prompt service.

Investment Advisory Service

Facilitation Services to Retail Investors, Corporate

Depository Services

Investment potions includes:

1. Online trading (Includes equity, derivatives

2. Commodities trading

3. Mutual Funds

4. Portfolio management Services



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SERVICES OFFERED BY SHAREKHAN



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ACHIEVEMENT/ AWARDS

Rated among the Top 20 wired companies along with

Reliance, HLL, Infosys, etc by ³business Today¶, January

2004 edition

Awarded µTop Domestic Brokerage House¶ four times by

Euro money and Asia money.

Pioneers of online trading in India amongst the top 3

online trading websites from India. Most preferred

financial destination amongst online broking customers.

Winners of ³Best Financial Website´ award

India¶s most preferred brokers within 5 years. ³Awaaz

Consumers Award 2005´



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STATEMENT OF THE PROBLEM

An investor who is looking for investment in the

stock market is in the dilemma of choosing shares

in his portfolio. An investor will always look for

lower risk and higher return. Major problem most

investors is facing is that in which stocks they must

invest so as to earn more return with less risk.

This study deals with testing the significance

of the risk return relationship.



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SCOPE OF THE RESEARCH

1. Information techonologysector:

. Wipro

. Infosys

. Tcs

2. Steel sector:

. Jindal steel

.Tata steel

. Sail

3. Banking sector:

. HDFC

. ICICI

. AXIS

4. Pharma sector

. Ranbaxy

. Dr . Reddys lab

. Sun pharma



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DATE CLOSING PRICE RETURN(R ) (R-Ra) (R-Ra)²20-Jan-11 5711.6

21-Jan-11 5696.5 -0.26437 0.06649 0.004421

24-Jan-11 5743.25 0.820679 1.15155 1.32607

25-Jan-11 5687.4 -0.97244 -0.64157 0.411612

27-Jan-11 5604.3 -1.46112 -1.13026 1.27749

28-Jan-11 5512.15 -1.64427 -1.3134 1.72502

31-Jan-11 5505.9 -0.11339 0.217484 0.0473

1-Feb-11 5417.2 -1.611 -1.28013 1.63873

2-Feb-11 5432 0.2732 0.60407 0.3649

3-Feb-11 5526.75 1.74429 2.07516 4.30629

4-Feb-11 5395.75 -2.37029 -2.03942 4.15923

7-Feb-11 5396 0.00463 0.3355 0.11256

8-Feb-11 5312.55 -1.5465 -1.21563 1.47776

9-Feb-11 5253.55 -1.11058 -0.77971 0.60795

10-Feb-11 5225.8 -0.52821 -0.19734 0.03894

11-Feb-11 5310 1.61124 1.94211 3.77179

14-Feb-11 5456 2.74953 3.0804 9.48886

15-Feb-11 5481 0.45821 0.78908 0.62265

16-Feb-11 5481.7 0.01277 0.34364 0.118088

17-Feb-11 5546.45 1.1812 1.51207 2.28636

18-Feb-11 5458.95 -1.57758 -1.24671 1.55429

21-Feb-11 5518.6 1.0927 1.42357 2.02655

22-Feb-11 5469.2 -0.89515 -0.56428 0.318412

24-Feb-11 5437.35 -0.58235 -0.25148 0.06324

25-Feb-11 5262.7 -3.21204 -2.88117 8.30114

TOTAL -7.94085 46.04965

CALCULATIONOF RETURN,STANDARD

DEVIATION OFNIFTY 50



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CALCULATION OF RETURN, STANDARD

DEVIATION OF

RETURN [R] = (P1-P0)/P0*100

Where, P1 = todays price

P0= yesterdays price

AVERAGE RETURN [Ra]

Ra= Total of return/ n

Ra=7.940845483/24

Ra = 0.33087

STANDARD DEVIATION [S.D]

S.D = ¥�(R -Ra)²/(n-1)S.D = 1.4149

MARKET RETURN [Ra] = 0.33087

MARKET RISK [S.D] = 1.41497

MARKET RETURN [Ra] = 0.33087 MARKET RISK [S.D] = 1.41497



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Calculationof return,standard

deviation andbeta of W IPRO

DATE CLOSING PRICE RETURN (R ) R-Ra (R-Ra)²

20-Jan-11 477.5

21-Jan-11 455.95 -4.51309 -3.93346 15.47211

24-Jan-11 443.9 -2.64283 -2.0632 4.256795

25-Jan-11 446.9 0.675828 1.255461 1.576183

27-Jan-11 438.65 -1.84605 -1.26642 1.603812

28-Jan-11 437.6 -0.23937 0.340263 0.115779

31-Jan-11 438.1 -4.51309 -3.93346 15.47207

1-Feb-11 429.35 -1.99726 -1.41763 2.009668

2-Feb-11 437.85 1.979737 2.55937 6.550376

3-Feb-11 442 0.947813 1.527447 2.333093

4-Feb-11 436.7 -1.1991 -0.61946 0.383733

7-Feb-11 426.9 -2.2441 -1.66447 2.770461

8-Feb-11 425.75 -0.26938 0.31025 0.096255

9-Feb-11 424.1 -0.38755 0.192082 0.036896

10-Feb-11 417.95 -1.45013 -0.8705 0.757764

11-Feb-11 420.25 0.550305 1.129939 1.276761

14-Feb-11 424.4 0.987507 1.567141 2.455931

15-Feb-11 425.45 0.247408 0.827042 0.683998

16-Feb-11 437.15 2.750029 3.329663 11.08665

17-Feb-11 432.05 -1.16665 -0.58701 0.344586

18-Feb-11 432.7 0.150446 0.730079 0.533015

21-Feb-11 451.05 4.240813 4.820447 23.23671

22-Feb-11 444.8 -1.38566 -0.80602 0.649672

24-Feb-11 427.15 -3.96808 -3.38844 11.48154

25-Feb-11 433.05 1.381248 1.960881 3.845055

TOTAL -13.9112 109.0289



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Calculation of BE TA and ALPHADATE R Rm R*Rm R²

21-Jan-11 -4.51309 -0.26437 1.193145 20.36798

24-Jan-11 -2.64283 0.820679 -2.16892 6.98457

25-Jan-11 0.675828 -0.97244 0.456743 0.456743

27-Jan-11 -1.84605 -1.46112 2.69731 2.69731

28-Jan-11 -0.23937 -1.64427 0.39359 0.39359

31-Jan-11 -4.51309 -0.11339 0.511721 20.36797

1-Feb-11 -1.99726 -1.611 3.217587 3.989051

2-Feb-11 1.979737 0.2732 0.540864 3.919358

3-Feb-11 0.947813 1.74429 1.653261 0.89835

4-Feb-11 -1.1991 -2.37029 2.842203 1.437829

7-Feb-11 -2.2441 0.00463 -0.01039 5.036001

8-Feb-11 -0.26938 -1.5465 0.416602 0.072568

9-Feb-11 -0.38755 -1.11058 0.765973 0.150196

10-Feb-11 -1.45013 -0.52821 0.765973 2.102876

11-Feb-11 0.550305 1.61124 0.886674 0.302836

14-Feb-11 0.987507 2.74953 2.715181 0.975171

15-Feb-11 0.247408 0.45821 0.113365 0.061211

16-Feb-11 2.750029 0.01277 0.035118 7.562662

17-Feb-11 -1.16665 1.1812 -1.37804 1.361067

18-Feb-11 0.150446 -1.57758 -0.23734 0.022634

21-Feb-11 4.240813 1.0927 4.633937 17.9845

22-Feb-11 -1.38566 -0.89515 1.24037 1.920042

24-Feb-11 -3.96808 -0.58235 2.310809 15.74562

25-Feb-11 1.381248 -3.21204 -4.43662 1.907845

TOTAL -13.9112 -7.94085 19.15911 116.718

AVERAGE -0.57963



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RETURN [R] = (P1-P0)/P0*100

Where, P1 = todays price

P0= yesterdays price

AVERAGE RETURN [Ra]

Ra= Total of return/ n

Ra= -13.9112/ 24

Ra= -0.57963

STANDARD DEVIATIONS.D =¥�(R -Ra)²/(n-1)

S.D=2.177242

BETA () = [n�(Rm*R)-(�Rm*�R)]/ [n�Rm²-(�Rm)²]

= [(24*19.15911)-(7.94085*13.9112)] / [(24*48.67701)-(-7.94085)²]

= 0.316101

ALPHA () = Ra- *Rm

= -0.57963- (0.316101*-0.56917)

= -0.399715



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Ra S.D

WIPRO -0.57963 2.177242 0.316101 -0.399715

TCS -0.35189 1.72981 0.62982 -0.006585

INFOSYS -0.37018 1.50057 0.51024 -0.0797

-1

-0.5

0

0.5

1

1.5

2

2.5

WIPRO TCS INFOSYS

Ra

S.D

SUMMARY STATEMENTOF RETURN, SD, BETA AND

ALPHA OF IT SECTOR



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SUMMARY STATEMENTOF RETURN, SD, BETAAND ALPHA OF STEEL SECTOR

COMPANY Ra S.D JINDAL STEEL -0.34518 2.35869 0.708021 0.009889

TATA STEEL -0.16153 2.1458 0.80921 0.299162

SAIL -0.30864 1.861 0.40249 -0.07955

-1

0

1

2

3

JINDALSTEEL

TATASTEEL

SAIL

Ra

S.D



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SUMMARY STATEMENTOF RETURN, SD, BETAAND ALPHA OF BANKING SECTOR

COMPANY Ra S.D

HDFC -0.13283 1.94626 0.89467 0.37639

ICICI -0.22655 2.7318 0.88882 0.27934

AXIS -0.13982 2.6661 0.9945 0.42622

-1

0

1

2

3

HDFC ICICI AXIS

Ra

S.D



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SUMMARY STATEMENTOF RETURN, SD, BETA AND

ALPHA OF PHARMACEUTICAL SECTOR

COMPANY Ra S.D RANBAXY -0.89924 2.67995 0.66156 -0.5227

Dr. REDDY¶S -0.3475 6.0611 0.281156 -0.18747

SUNPHARM

A

-0.7785 2.63141 1.14801 -0.12509

-2

02468

a

S.D



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Summary Statement of Return, Standard

deviation, Beta and AlphaCOMPANY Ra S.D

WIPRO -0.57963 2.177242 0.316101 -0.399715TCS -0.35189 1.72981 0.62982 -0.006585

INFOSYS -0.37018 1.50057 0.51024 -0.0797

JINDAL STEEL -0.34518 2.35869 0.708021 0.009889

TATA STEEL -0.16153 2.1458 0.80921 0.299162

SAIL -0.30864 1.861 0.40249 -0.07955

HDFC-

0.1

32831

.94626 0.89467 0.37639ICICI -0.22655 2.7318 0.88882 0.27934

AXIS -0.13982 2.6661 0.9945 0.42622

RANBAXY -0.89924 2.67995 0.66156 -0.5227

Dr. REDDY¶S -0.3475 6.0611 0.281156 -0.18747

SUNPHARMA -0.7785 2.63141 1.14801 -0.12509

-2024

68

Ra

S.D



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THANK YOU

A Study on Sectoral Analysis Using Nifty

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