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    Alpha-Research and Investment Club: Task 1

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    Shitanshu Yadav
    The document discusses stock market indices in India. It provides information on the Nifty 50 index, including that it tracks the performance of the 50 largest companies listed on the National Stock Exchange and accounts for approximately 66.8% of its market capitalization. It also discusses the Sensex index, noting that it tracks the 30 largest companies on the Bombay Stock Exchange and is India's oldest stock index. The document calculates the holding period returns for both indices over the past year, finding returns of 9.47% for Nifty 50 and 10.98% for Sensex.

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    Alpha-Research and Investment Club: Task 1

    Uploaded by

    Shitanshu Yadav
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    The document discusses stock market indices in India. It provides information on the Nifty 50 index, including that it tracks the performance of the 50 largest companies listed on the National Stock Exchange and accounts for approximately 66.8% of its market capitalization. It also discusses the Sensex index, noting that it tracks the 30 largest companies on the Bombay Stock Exchange and is India's oldest stock index. The document calculates the holding period returns for both indices over the past year, finding returns of 9.47% for Nifty 50 and 10.98% for Sensex.

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    Shitanshu_Yadav_Task 1&2

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    The document discusses stock market indices in India. It provides information on the Nifty 50 index, including that it tracks the performance of the 50 largest companies listed on the National Stock Exchange and accounts for approximately 66.8% of its market capitalization. It also discusses the Sensex index, noting that it tracks the 30 largest companies on the Bombay Stock Exchange and is India's oldest stock index. The document calculates the holding period returns for both indices over the past year, finding returns of 9.47% for Nifty 50 and 10.98% for Sensex.

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    © All Rights Reserved
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    15 views2 pages

    Alpha-Research and Investment Club: Task 1

    Uploaded by

    Shitanshu Yadav
    The document discusses stock market indices in India. It provides information on the Nifty 50 index, including that it tracks the performance of the 50 largest companies listed on the National Stock Exchange and accounts for approximately 66.8% of its market capitalization. It also discusses the Sensex index, noting that it tracks the 30 largest companies on the Bombay Stock Exchange and is India's oldest stock index. The document calculates the holding period returns for both indices over the past year, finding returns of 9.47% for Nifty 50 and 10.98% for Sensex.

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    of 2

    ALPHA-RESEARCH AND

    INVESTMENT CLUB
    Task 1:

    Closing price of 1 share of HUL on 1 st April 2018 = ₹1333.35

    Price of 100 share on 1st April 2018 = ₹1,333.35*100=₹133335

    Closing price of 1 share of HUL on 9 th June 2019 = ₹1830.75

    Price of 100 share on 9th June 2019 = ₹183075

    Absolute value of capital generated on selling 100 shares on 9 th June 2019(profit) = ₹183075-
    ₹133335 = ₹ 49740

    Total dividend declared during this period=12+9+13= ₹34/share

    Holding period return = {(34+1830.75)/1333.35-1}*100=39.86%

    Task 2:

    What is Nifty 50?

    The NIFTY 50 is a diversified 50 stock index accounting for 13 sectors of the economy. It is used for a
    variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

    NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services &
    Products Limited) (NSE Indices). NSE Indices is India's specialised company focused upon the index as
    a core product.

     The NIFTY 50 Index represents about 66.8% of the free float market capitalization of the
    stocks listed on NSE as on March 29, 2019.

     The total traded value of NIFTY 50 index constituents for the last six months ending March
    2019 is approximately 53.4% of the traded value of all stocks on the NSE.

     Impact cost of the NIFTY 50 for a portfolio size of Rs.50 lakhs is 0.02% for the month March
    2019.

     NIFTY 50 is ideal for derivatives trading.

    What is Sensex?

    Sensex, otherwise known as the S&P BSE Sensex index, is the benchmark index of the Bombay Stock
    Exchange (BSE) in India. Sensex comprises 30 of the largest and most actively-traded stocks on the
    BSE, providing an accurate gauge of India's economy. The index's composition is reviewed in June
    and December each year. Initially compiled in 1986, the Sensex is the oldest stock index in India.
    Analysts and investors use the Sensex to observe the overall growth, development of particular
    industries, and booms and busts of the Indian economy.

    What is the holding period return on Nifty50 and Sensex for the past 1 year? (Note: Consider only
    appreciation/depreciation)

    HPR for nifty 50 =(11823.30-10799.85)/10799.85=9.47%

    HPR for Sensex = ((1.18/100)+1.1075)-1=11.93%

    =(39452.07-35548.26)/35548.26=10.98%

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