CONTENTS

S.NO TOPIC
PAGE.NO.
1 CHAPTER-I
 INTRODUCTION 1-11

2 CHAPTER – II
 REVIEW OF LITERATURE 12-26

3 CHAPTER – III 27-49

 INDUSTRIAL PROFILE
 COMPANY PROFILE

4 CHAPTER – IV 50-68
 DATAANALYSIS&
INTERPRETATION

5 CHAPTER-V 69-72
FINDINGS,SUGGESTIONS,CONCLUSIONS

6  BIBLIOGRAPHY
 Annexure

1
CHAPTER-I
INTRODUCTION

1
INTRODUCTION TO FINANCE

Finance is defined as the management of money and includes activities such as

investing, borrowing, lending, budgeting, saving, and forecasting. There are three
main types of finance: (1)Personal (2) Corporate,and Public/government.

Personal Finance

Financial planning involves analyzing the current financial position of individuals to

formulate strategies for future needs within financial constraints. Personal finance is
specific to every individual's situation and activity; therefore, financial strategies
depend largely on the person's earnings, living requirements, goals, and desires.

For example, individuals must save for retirement, which requires saving or investing
enough money during their working lives to fund their long-term plans. This type of
financial management decision falls under personal finance.

Corporate Finance
Corporate finance refers to the financial activities related to running a corporation,
usually with a division or department set up to oversee the financial activities.

For example, a large company may have to decide whether to raise additional funds
through a bond issue or stock offering. Investment banks may advise the firm on such
considerations and help them market the securities.

Public Finance

Public finance includes tax, spending, budgeting, and debt issuance policies that
affect how a government pays for the services it provides to thepublic.

The federal government helps prevent market failure by overseeing the allocation of
resources, distribution of income, and economic stability. Regular funding is secured
mostly through taxation. Borrowing from banks, insurance companies, and other
nations also help finance government spending.

In addition to managing money in day-to-day operations, a government body also has

social and fiscal responsibilities. A government is expected to ensure adequate social
programs for its tax-paying citizens and to maintain a stable economy so that people
can save and their money will be safe.

2
 INTRODUCTION TO FINANCIAL MANAGEMENT

Financial management focuses on ratios, equities and debts. It is useful for portfolio
management, distribution of dividend, capital raising, hedging and looking after
fluctuations in foreign currency and product cycles. Financial managers are the people
who will do research and based on the research, decide what sort of capital to obtain
in order to fund the company's assets as well as maximizing the value of the firm for
all the stockholders. It also refers to the efficient and effective management of money
(funds) in such a manner as to accomplish the objectives of the organization. It is the
specialized function directly associated with the top management. The significance of
this function is not seen in the 'Line' but also in the capacity of the 'Staff' in overall of
a company. It has been defined differently by different experts in thefield.

OBJECTIVES OF FINANCIAL MANAGEMENT

 The term typically applies to an organization or company's financial strategy,

while personal finance or financial life management refers to an individual's
management strategy. It includes how to raise the capital and how to allocate
capital, i.e. capital budgeting. Not only for long term budgeting, but also how to
allocate the short term resources like current liabilities. It also deals with the
dividend policies of the share holders.Profit maximization happens whenmarginal
cost is equal to marginal revenue. This is the main objective of Financial
Management.
 Wealth maximization means maximization of shareholders' wealth. It is an
advanced goal compared to profitmaximization.
 Survival of company is an important consideration when the financial manager
makes any financial decisions. One incorrect decision may lead company to be
bankrupt.
 Maintaining proper cash flow is a short run objective of financial management. It
is necessary for operations to pay the day-to-day expenses e.g. raw material,
electricity bills, wages, rent etc. A good cash flow ensures the survival of
company.
 Minimization on capital cost in financial management can help operationsgain
more profit.

 It is vague :- There are several types of profits before interest, depreciation and
taxes, profit before taxes, profit after taxes cash profitetc.

SCOPE OF FINANCIAL MANAGEMENT

 Estimating the Requirement of Funds: Businesses make forecast on funds needed
in both short run and long run, hence, they can improve the efficiency of funding.
The estimation is based on the budget e.g. sales budget, productionbudget.
 Determining the capital structure: Capital structure is how a firm finances its
overall operations and growth by using different sources of funds. Once the
requirement of funds has estimated, the financial manager should decide the
mixof debt and equity and also types ofdebt.

\\

3
INTRODUCTION

Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed
in offerdocument.
Investments in securities are spread across a wide cross-section of industries
and sectors and thus the risk is reduced. Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money
invested by them. Investors of mutual funds are known as unitholders.
The profits or losses are shared by the investors in proportion to their
investments. The mutual funds normally come out with a number of schemes with
different investment objectives which are launched from time to time. A mutual fund
is required to be registered with Securities and Exchange Board of India (SEBI)which
regulates securities markets before it can collect funds from thepublic.
A mutual fund is set up in the form of a trust, which has sponsor, trustees,
asset Management Company (AMC) and custodian. The trust is established by a
sponsor or more than one sponsor who is like promoter of a company. The trustees of
the mutual fund hold its property for the benefit of the unit holders. Asset
Management Company (AMC) approved by SEBI manages the funds by making
investments in various types of securities. Custodian, who is registered with SEBI,
holds the securities of various schemes of the fund in its custody. The trustees are
vested with the general power of superintendence and direction over AMC. They
monitor the performance and compliance of SEBI Regulations by the mutualfund.
Unit Trust of India was the first mutual fund set up in India in the year 1963.
In early 1990s, Government allowed public sector banks and institutions to set up
mutualfunds.

4
NEED OF THE STUDY

Investment in stocks offers good investments opportunities to the investors. An

investor can invest in as many number of companies listed on NSE and BSE. The
amount of investment by the retail investors are increasing and the selection of a stock
has become difficult, so as investor has to compare the risk involved in investment in
stocks.

OBJECTIVE OF THESTUDY
 To determine if there is a difference of return and risk of securities listed on NSE
andBSE.
 If there is any difference of return and risk of securities, whether one can take an
advantage of these ornot.
 Impact of price variance of share on NSE and BSE will affect the investor ornot
or how they can be benefited through pricevariance.

SCOPE OF THE STUDY

The scope of study is limited to the Indian stock market. The study aimed to analyze
how an investor can reduce his investment risk by the effective use of trading on NSE
or BSE.

5
RESEARCH METHODOLOGY

Methodology is a way in which we find out the information. It describes how the
project is done. The methodology includes method procedures and techniques used to
collect and analyze information.
Data collection source is secondary data. Secondary data are information,
which has previously been collected by some organization.The data used for the study
is of historical or secondary nature which is collected from theweb site of NSE and
BSE.

Theoretical framework of the study :

Average Mean

The arithmetic mean of a given set of data is their sum divided bytheir
number ofObservations.

Sumofobservations AverageReturns = Numberofobservations

Ẍ =x1+x2+⋯ xnn

Median

The median is that variable, which divides the group into two equal parts, one
part comparing all the values greater and the other, all values less than the median. In
other words median defined as the middle value in the data set when its elements are
arranged in the sequential order that is in either ascending (or) descending order of
magnitude. Thus the median is a measure of location of centrality of the observatism.

6
Ungroupeddata

(i) Ifthe
numberofobservations(n)isoddnumberMedian=Size(or)val
ue of(n+12)thobservationin thearray.
(ii) If the number of observations is an evennumber
Median = (n/2)th observations + (n/2+1)th observation /2

Standard Deviation

The numerical value of population or sample variance is difficult to interpret

because it is expressed in square. To reach an interpretable measure of variance
expressed in the units of of original data we take a square root of variance which is
known as standard deviation or root mean square deviation. The standard deviation
of population and sample denoted by Sor

Standard Deviation= √∑x2 −nx−2

n−1 x−1

Variance

A measure of variability based on squared deviations of observed values in

the data set about the mean value.

Variance = ∑(x−x)n−1

Correlation

A statistical technique that is used to analyze the strength and direction of

relationship between two quantitative variables, is called correlation analysis.

7
 Karl Pearson’s coefficient of Correlation

This method popularly known as Pearson coefficient of correlation and is most widely used par
action. This is denoted by symbol “r”. The formulae for computing Pearson ‘r’is
∑xy
r=
Nσxσy
y = (Y − Y)
Karl Pearson’s

N =No., pairs ofobservations

x = Standard deviation of xseries
y = Standard deviation of yseries

r = The correlation coefficient

The method is applied only where deviations of items are taken from actual mean
not the assumed mean. The value ‘r’ shall always lie between ±1. If r=+1 then there is
a perfect positive correlation. If r=-1 then there a perfect negative correlation and if
r=0means there is no relationship between two variables.

T – Distribution Applications

Testing difference between means of two samples

Given two independent random samples of size n1 &n2 with means x1&x 2 and standard
deviations s1&s2 . We may interest in testing the hypothesis that samples come from the same
population. To carry out the test we calculate the static as follows.
t =X̅1−X̅2 ×√ n1n2
Sn1 +n 2

8
where,
̅̅̅X1 = mean of first sample
̅̅̅X2 = mean of second sample
n1 = No., of observations of first sample
n2 = No., of observation of second sample

S = combined standard deviation The value of S calculated by

S =√∑(X1−X̅1)2 +∑(X2−X̅2)2 n1+n2−2

Standard Error

The standard deviation of the sampling distribution is called standard error.

It is also called so because it measures the sampling variability due to chance of
random forces.

Test for difference between Proportions

If two samples are drawn from different population, we may be interested in
finding out whether the difference between the proportions of success is significant or
not. The standard error of difference between proportion is calculated by applying the
following formulae.
1 1
( )
S.E P1 − P2 =√pq(n1 + n2)

9
 Where P= the pooled estimate of the actual proportion in the population where the
value of P obtained by

n1p1+n2p2 (or) P = x1 +x2

P=
n +n

n +n

2
1 1 2

Where x1&x2= number ofoccurrences

n1&n2 =
Sample size

P1 −P2
If is less than 1.96 S.E (5% level) the difference is regarded as the random
S.E

sample

Variation that is as not significant.

Covariance

The joint variance between quantitative variables is known

Covariance. It is an absolute measure. It can be either positive (or) negative (or)Zero.

Samples:
To conduct a study the sample has been chosen the common companies listed on NSE
and BSE form different industries. The study has been conducted for a sample of
equity stocks with thirty companies and the sample consist of HCL TECH, TCS,
SATYAM, WIPRO, INFOSYS, PATNI COMP,FINANCIAL TECH,SASKEN
COMM, TECH MAHINDRA,GEOMETRIC, MPHASIS, NIIT TECH,
HEXAWARE,INFOTECH,TATA ELXI,POLARIS,HINDUJA, SAKSOFT, BLUE
STAR,RAMCO,SOFTPRO,SONATA,CRANESSOFT,CYBERTECH,ONWARDTE
CH, GOLDSTONE, UTV , SUBEX,MEGASOFT.

110
Analysis:For the analysis purpose the methods used are the comparative study and
calculation of Risk Adjusted Returns, average returns, and correlation covariance has
been calculated.

LIMITATION OF STUDY
 The study is done by using secondary data that is historic data of price of
shares listed on NSE and BSE of differentcompanies.
 The analysis and interpretation of data is restricted to necessary
information.
CHAPTER-II
REVIEW OF LITERATURE
REVIEW OF LITERATURE

STOCK:
It is a type of security that signifies ownership in a corporation and represents a claim
on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred. Common stock usually
entitles the owner to vote at shareholders' meetings and to receive dividends.
Preferred stock generally does not have voting rights, but has a higher claim on assets
and earnings than the common shares. For example, owners of preferred stock receive
dividends before common shareholders and have priority in the event that a company
goes bankrupt and isliquidated.
Also known as shares orequity.

Stock Exchange
The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’ as
any body of individuals, whether incorporated or not, Constituted for the purpose of
assisting, regulating or controlling the business of buying, selling or dealing in
securities. Stock exchange could be a regional stock exchange whose area of operation
or jurisdiction is specified at the time of its recognition or national exchanges, which
are permitted to have nationwide trading sinceinception.

INTRODUCTION OF NSE
The National Stock Exchange of india limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges, which recommend
promotion of a National Stock exchange by Financial Institutions(FIs) to provide
access to investors from across the country on an equal footing. Based on the
recommendations, NSE was promoted by leading financial institutions at the behest of
Government Of India and was incorporated in November 1992 as a company. On its
recognition as a Stock Exchange under the Securities Contracts (Regulation)Act, 1956
in 1993, NSE commenced its operations in the Whole Debt Market(WDM) segment
in June 1994. The Capital Market (Equities) segment commenced operations in
November 1994 and operations in Derivatives segment commenced in June2000.
The National Stock Exchange is India's largest financial market. Established in 1992,
the NSE has developed into a sophisticated, electronic market, which ranks third in
the world for transacted volume. The NSE conducts transactions in the wholesale
debt, equity and derivativemarkets.
Based in Mumbai, India, the National Stock Exchange is a leader in market
technology. The exchange's supports more than 3,000 VSAT terminals, making the
NSE the largest private wide-area network in the country. The National Stock
Exchange has been a pioneer for Indian financial markets, being the first electronic
limit order book to trade derivatives and ETFs. The NSE include the following is as
follows,

India Index Services & Products Ltd. (IISL)

India Index Services & Products Ltd. (IISL) is a joint venture between the National
Stock Exchange of India Ltd. (NSE) and CRISIL Ltd. (formerly the Credit Rating
Information Services of India Limited). IISL has been formed with the objective of
providing a variety of indices and index related services and products for the capital
markets.
IISL has a licensing and marketing agreement with Standard and Poor's (S&P), the
world's leading provider of investible equity indices, for co-branding IISL's equity
indicesObjectives of IISL pools the index development efforts of CRISIL and NSE
into a coordinated whole - India's first specialized company focused upon the index as
a core product. IISL has the following objectives:
To develop, construct and maintain indices on Indian equities and commodities that
serve as useful market performance benchmarks and are the underlying indices for
derivatives trading
To develop related products and services this can be used by investors for managing
their exposures in the equity and commodity markets To provide data and information
on the trading activity in the Indian stock marketsTo provide market participants with
value added research on the Indian equity and Commodity marketsAll the erstwhile
indices of NSE & CRISIL, Such as Nifty, Nifty Junior,Defty, CRISIL 500, CRISIL
MIDCAP 200 index etc. have been transferred to IISL which now maintains,
develops, complies and disseminates theindices.
The indices of IISL are now known under the following names:
S.No. Old Name New Name
1 Nifty S&P CNX Nifty
2 Defty S&P CNX Defty
3 Crisil 500 Equity Index S&P CNX 500 Equity Index
4 Nifty Junior CNX Nifty Junior
5 Crisil Midcap 200 CNX Midcap 200 Index*
6 Crisil PSE CNX PSE Index
7 Crisil MNC CNX MNC Index

PSE indicates Public Sector Enterprises

MNC indicates Multinational Corporation
*CNX Midcap 200 Discontinued from July 18, 2005
1. S&P CNXNifty
S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors of the
economy. It is used for a variety of purposes such as benchmarking fund portfolios,
indexbasedderivativesandindexfunds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first
specialized company focused upon the index as a core product. IISL has Marketing
and licensing agreement with standard & poor’s (S&P), who world leaders are in
indexservices.
The total traded value for the last six months of all Nifty stocks is approximately 52%
of the traded value of all stocks on the NSE Nifty stocks represent about 63% of the
Free Float Market Capitalization as on Dec 31, 2009.
Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.10% S&P
CNX Nifty is professionally maintained and is ideal for derivatives tradingFrom
June 26, 2009, S&P CNX Nifty is computed based on free floatmethodology.

2. S&P CNXDefty
Almost every institutional investor and off-shore fund enterprise with an equity
exposure in India would like to have an instrument for measuring returns on their
equity investment in dollar terms. To facilitate this, a new index the S&P CNX Defty-
Dollar Denominated S&P CNX Nifty has been developed. S&P CNX Defty is S&P
CNX Nifty, measured in dollars.
Salient Features
Performance indicator to foreign institutional investors, off-shore funds, etc.
Provides an effective tool for hedging Indian equity exposure.
Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 crore is 0.16%
Provides fund managers an instrument for measuring returns on their equity
investment in dollar terms.

3. S&P CNX500
The S&P CNX 500 is India’s first broad based benchmark of the Indian capital
market. The S&P CNX 500 represents about 92.57% of total market capitalization
and about 91.17% of the total turnover on the NSE as on Sept 30, 2009. The S&P
CNX 500 companies are disaggregated into 72 industry indices viz. S&P CNX
Industry Indices. Industry weightages in the index reflect the industry weightages in
the market. For e.g. if the banking sector has a 5% weightage in the universe of stocks
traded on NSE, banking stocks in the index would also have an approx. representation
of 5% in theindex.
4. CNX NiftyJunior
The next rung of liquid securities after S&P CNX Niftyis the CNX Nifty Junior. It
may useful to think of the S&P CNX Nifty and the CNX Nifty Junior as making up
the 100 most liquid stocks in India.
As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for liquidity,
so they are the most liquid of the stocks excluded from the S&P CNX Nifty. The
maintenance of the S&P CNX Nifty and the CNX Nifty Junior are synchronized so
that the two indices will always be disjoint sets; i.e. a stock will never appear in both
indices at the same time. Hence it is always meaningful to pool the S&P CNX Nifty
and the CNX Nifty Junior into a composite 100 stock index or portfolio.
CNX Nifty Junior represents about 12 % of the Free Float Market Capitalization as
on Dec 31,2009.
The traded value for the last six months of all Junior Nifty stocks is approximately
15% of the traded value of all stocks on the NSE
Impact cost for CNX Nifty Junior for a portfolio size of Rs.50 lakhs is
0.13% 21
From May 04, 2009, CNX Nifty Junior is computed based on free float
methodology.

5. CNX Midcap200
The medium capitalized segment of the stock market is being increasingly perceived
as an attractive investment segment with high growth potential. The primary objective
of the CNX Midcap 200 Index is to capture the movement and be a benchmark of the
midcap segment of the market.
CNX Midcap 200 represents about 72% of the total market capitalization of the Mid-
Cap Universe and about 70% of the total traded value of the Mid-Cap Universe (Mid-
Cap Universe is defined as stocks having average six months market capitalization
between Rs.75 crores and Rs.750 crores).
Industry weightages in the index dynamically reflect industry weightages in the
market
Provide investors a broad based benchmark for comparing portfolio returns vis-à-vis
market returns in the midcapsegment.

6. CNX PSEIndex
As part of its agenda to reform the Public Sector Enterprises (PSE), the Government
has selectively been disinvesting its holdings in public sector enterprises since 1991.
With a view to provide regulators, investors and market intermediaries with an
appropriate benchmark that captures the performance of this segment of the market, as
well as to make available an appropriate basis for pricing forthcoming issues of PSEs,
IISL has developed the CNX PSE Index, comprising of 20 PSE stocks. The CNX PSE
Index includes only those companies that have over 51% of their outstanding share
capital held by the Central Government and/or State Government, directly or
indirectly.

7. CNX MNCIndex
The CNX MNC Index comprises 15 listed companies in which the foreign
shareholding is over 50% and / or the management control is vested in the foreign
company.
INTRODUCTION OFBSE
Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange in Asia
with a rich heritage. Popularly known as "BSE", it was established as "The Native
Share & Stock Brokers Association" in 1875. It is the first stock exchange in the
country to obtain permanent recognition in 1956 from the Government of India under
the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-
eminent role in the development of the Indian capital market is widely recognized and
its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP),
the Exchange is now a demutualised and corporative entity incorporated under the
provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and
Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of
India (SEBI).Bombay Stock Exchange Limited received its Certificate of
Incorporation on 8th August,2005
and Certificate of Commencement of Business on 12th August, 2005. The 'Due Date'
for taking over the business and operations of the BSE, by the Exchange was fixed for
19th August, 2005, under the Scheme. The Exchange has succeeded the business and
operations of BSE on going concern basis and its recognition as an Exchange has
been continued bySEBI.
The Exchange has a nation-wide reach with a presence in 417 cities and towns of
India. The systems and processes of the Exchange are designed to safeguard market
integrity and enhance transparency in operations. During the year 2004-2005, the
trading volumes on the Exchange showed robust growth.
The Exchange provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. The BSE's On Line Trading System (BOLT) is a
proprietary system of the Exchange and is BS 7799-2-2002 certified. The surveillance
and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

INDEX:
The performance of any stock market –whether it is going up or down is reported in
an index, which serves as an important tool for measuring the overall health of stock
market .In most countries, there is more than one index.
A statistical measure of change in an economy or a securities market. In the case of
financial markets, an index is an imaginary portfolio of securities representing a
particular market or a portion of it. Each index has its own calculation methodology
and is usually expressed in terms of a change from a base value. Thus, the percentage
change is more important than the actual numeric value. Stock and bond market
indexes are used to construct index mutual funds and exchange-traded funds (ETFs)
whose portfolios mirror the components of the index.
An Index shows how specified portfolios of share price are moving in order to give an
indication of market trends. It is a basket of securities and the average price
movement of the basket of securities indicates the index movement, whether upwards
ordownwards.
Some of the market indicators for BSE are explained below

1. SENSEX
SENSEX, firstcompiled in 1986, was calculated on a "Market Capitalization-
Weighted" methodology of 30 component stocks representing large, well-established
and financially sound companies across key sectors.
The base year of SENSEX was taken as 1978-79. SENSEX today is widely reported
in both domestic and international markets through print as well as electronic media.
It is scientifically designed and is based on globally accepted construction and review
methodology. Since September 1, 2003, SENSEX is being calculated on a free-float
market capitalization methodology.
The "free-float market capitalization-weighted" methodology is a widely followed
index construction methodology on which majority of global equity indices are based;
all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the
free-float methodology.
The growth of the equity market in India has been phenomenal in the present decade.
Right from early nineties, the stock market witnessed heightened activity in terms of
various bull and bear runs.
In the late nineties, the Indian market witnessed a huge frenzy in the 'TMT' sectors.
More recently, real estate caught the fancy of the investors. SENSEX has captured all
these happenings in the most judicious manner. One can identify the booms and busts
of the Indian equity market through SENSEX. As the oldest index in the country, it
provides the time series data over a fairly long period of time (from 1979 onwards).
Small wonder, the SENSEX has become one of the most prominent brands in the
country.
2. BSE-500Index
Bombay Stock Exchange Limited constructed a new index, christened BSE-500,
consisting of 500 scripsw.e.f. August 9, 1999. The changing pattern of the economy
and that of the market were kept in mind while constructing this index.
BSE-500 index represents nearly 93% of the total market capitalization on BSE. BSE-
500 covers all 20 major industries of the economy. In line with other BSE indices,
effective August 16, 2005 calculation methodology was shifted to the free-float
methodology.

3. Midcap
BSE Mid-Cap and BSE Small-Cap Index
BSE introduced the new index series called 'BSE MID-Cap' index and 'BSE Small-
Cap' index to track the performance of companies with relatively smaller market
capitalization.
BSE-500 Index - represents more than 93% of the listed universe. Companies with
large market capitalization bias the movement of BSE-500 index. This necessitated
construction of a separate indicator to capture the trend in companies with lower
market capitalization. Over the years, BSE Mid-Cap and BSE Small-Cap indices have
proven to be a great utility to the investing community.
BSE Mid-Cap and BSE Small-Cap index – Scrip selection criteria.
The general guidelines for selection of constituents in BSE Mid-Cap and BSE Small-
Cap index asfollows

Trading Frequency: The scrip should have been traded on 60% of the trading days in
the last threemonths
Eligible universe shall comprise of companies aggregating 98.5% of average market
capitalization
This list shall be categorixed under large-cap, mid-cap and small-cap segment based
on 80%-15%-5% market capitalization coverage respectively
BSE Mid-Cap Index shall comprise of scrips that gives market capitalization
coverage between 80% & 95% from the list derived as per point no.3above
BSE Small-Cap Index shall comprise of scrips that gives market capitalization
coverage between 95% & 100% from the list derived as per pont no.3 above

210
4.BSEBANKEX
In view of the emergence of banking stocks as a major segment in the equity markets,
BSE considered it desirable to design an index exclusively for bank stocks. Features

A few important features of the BANKEX are given below:

BANKEX tracks the performance of the leading banking sector stocks listed on the
BSE
BANKEX is based on the free-float methodology of index
st
construction The base date for BANKEX is 1 January 2002.
The base value for BANKEX is 1000 points
st
BSE has calculated the historical index values of BANKEX since 1 January 2002.
12 stocks which represent 90 percent of the total market capitalization of all banking
sector stocks listed on BSE are included in the Index
The Index is disseminated on a real-time basis through BSE Online Trading (BOLT)
terminals.
Stocks forming part of the BANKEX along with the particulars of their free-float
adjusted market capitalization are listed below.

5. BSE CAPITALGOODS(CG):It was launched on 09 August, 1999 with an full

market capitalization method and effective from August 23, 2004, calculation method
shifted to free-float marketcapitalization.

INVESTMENT:
The money earn is partly spent and the rest saved for meeting future expenses. Instead
of keeping the savings idle may like to use savings in order to get return on it in the
future. This is called Investment. Investment is the sacrifice of certain present value
for the uncertain future reward. It entails arriving at a numerous decision such as type,
mix, amount, timing, grade etc. of investment and disinvestment.
Investment in asset is an activity which evokes interest and attracts people from any
profession irrespective of there occupation, economic status, education and family
back ground. Usually a person who is having more money than he requires for
consuming currently can be termed as a potential investor. He uses his extra cash to
invest in securities or other assets like precious metals stones and real estate or else he
can simply deposit money in his bank account. When this concept is applied to
corporate, the corporate will invest their money for expanding there existing projects
or to undertake new ventures. In a broader sense all these activities give the meaning
“INVESTMENT”.
For an economist investment is the net addition made to the nation’s
capital stock which consists of goods and services which are used in production
process and will generate revenue when sold in the market. But as a securities analyst
one must understand investment from financial point of view the financial investment
is the allocation of money to assets that are expected to yield some gain over a period
of time. Hence it is an exchange of financial claims in the form of stocks and bonds
for money which is expected to yield return and have a capital growth over the years.
As financial and security analyst we must be concerned only with financial
investment made in securitiesi.e..,

Fixed income securities

Ex: - bonds and debentures
Variable income securities
Ex: - Equity shares/ common stock/ stock
Investment has two attributes and they are
-Time and
-Risk.
Attribute of time is related to the sacrifice of present consumption to get a return in
the future. But getting the return in the future may be uncertain and this uncertainty is
the risk factor. But this risk is undertaken to reap some return from theinvestment.
THE INVESTMENT PROCESS
The investment processes can be divided into following five stages.
1. Forming an investmentpolicy.
2. Investmentanalysis
3. Securityvaluation
4. Portfolioconstruction
5. Portfolioevaluation
Investment avenues are broadly classified under the following heads.
1. Corporatesecurities
2. EquityShares
3. Preference shares
4. Debentures/bonds (debenture issued by private companies/ bonds issued by
governmentcompanies.)
5. Warrants
6. GDRS and ADRS (global depository receipts and American depository
receipts)
7. Derivatives
8. Deposits in banks and non bankingcompanies
9. Post office deposits andcertificates
10. Life insurancepolicies
11. Provident fundschemes
12. Government and semi governmentsecurities.
13. Mutual fundsscheme
14. Realassets
15. BillionInvestments

RETURN:
The ratio of money gained or lost on an investment relative to the amount of money
invested. The gain or loss of a security in a particular period is called return. The
return consists of the income and the capital gains relative on an investment. It is
usually quoted as apercentage
The general rule is that the more risk you take, the greater the potential for higher
return - and loss.
In security analysis as security analyst we must primarily concern with return from
the investors perspective. They may concern is to compute or estimate the return for
an investor on a particular investment. The investment concern with as a financial
assets like a share or debenture or some other financial assets like a share or debenture
or some other financialinstrument.
MEAN RETURN: In securities analysis, it is the expected value, or mean, of all the
likely returns of investments comprising a portfolio. It is also known as "expected
return". It is the mean, or expected, return that investors try to maximize at each level
of risk.
Mean returns attempt to quantify the relationship between the risk of a portfolio of
securities and its return. It assumes that while investors have different risk tolerances,
rational investors will always seek the maximum rate of return for every level of
acceptable risk.

Methods of measuring returns:

Return can be calculated in:
1. Ex- Post Returns: Return calculations done ‘after-the-fact,’ in order to analyze what
rate of return was earned.
R= P1–P0+D1 *100
P0

Where, r =return,
P1 = Purchase price of the end year.
P0 = Purchase price of beginning year.
D1 = Amount of dividend paid in P1.

RISK:
Risk is a concept that denotes a potential negative impact to an asset or some
characteristic of value that may arise from some present process or future event.
Risk is the probability that an investment's actual return will be different than
expected. This includes the possibility of losing some or all of the original
investment. It is usually measured by calculating the standard deviation of the
historical returns or average returns of a specificinvestment.

.
Statistical measures that are historical predictors of investment risk and volatility and
major components in modern portfolio theory (MPT). MPT is a standard financial and
academic methodology for assessing the performance of a stock or a stock fund
compared to its benchmark index. There are five principal risk measures:
R-Squared: Measures the percentage of an investment's movement that is attributable
to movements in its benchmark index.
Standard Deviation: Measures how much return on an investment is deviating from
the expected normal or average returns.

1. Standard Deviation:
1. A measure of the dispersion of a set of data from its mean. The more spread apart
the data is, the higher thedeviation.
2. In finance, standard deviation is applied to the annual rate of return ofan
investment to measure the investment's volatility(risk).
A volatile stock would have a high standard deviation. In mutual funds, the standard
deviation tells us how much the return on the fund is deviating from the expected
normal returns.
Standard deviation can also be calculated as the square root of the variance.
n
Standarddeviation= √(1/n-1∑ r —‾ri)
t=1 it

Where
n=is number of securities
rit is historical or ex-post return generated by ith stock in time period‘t’.
ri is excepted return generated by ith stock in time period ‘t’.
COVARIANCEA statistical measure of the correlation of the fluctuations of the
annual rates of return of different investments. A measure of the degree to which
returns on two risky assets move in tandem. This measure is equal to the product of
the deviations of corresponding values of the two variables from their respective
means.
One method of calculating covariance is by looking at return surprises
(deviations from expected return) in each scenario. Another method is to multiply the
correlation between the two variables by the standard deviation of each variable. A
positive covariance means that asset returns move together.
A negative covariance means returns move inversely.

CORELATION
A measure that determines the degree to which two variable's movements is
associated. Statistical measure of the degree to which the movements of two variables
are related.
 The correlation coefficient for two variables X and Y is defined as the covariance of X
and Y divided by the product of the standard deviations of the individual variables. The correlation
coefficient is calculated as:
COV  
AB AB A B
OR

The correlation coefficient will vary from -1 to +1. A -1 indicates perfect negative
correlation, and +1 indicates perfect positive correlation.
 CHAPTER 3
COMPANY PROFILE
SECURITIES EXCHANGE BOARD
OFINDIA HISTORY:
Securities and Exchange Board of India (SEBI) was first established in 1988 as a non-
statutory body for regulating the securities market. It became an autonomous body on
12 April 1992 and was accorded statutory powers with the passing of the SEBI Act
1992 by the Indian Parliament. Soon SEBI was constituted as the regulator of capital
markets in India under a resolution of the Government of India. SEBI has its
headquarters at the business district of BANDRA KURLA Complex in Mumbai and
has Northern, Eastern, Southern and Western Regional Offices
inNewDelhi, Kolkata, Chennai, and Ahmedabad
respectively. It has opened local offices at Jaipur andBangaloreand has
also opened offices
at Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh in Financial Year 2013 -
2014.
Controller of Capital Issues was the regulatory authority before SEBI came into
existence; it derived authority from the Capital Issues (Control) Act, 1947.
The SEBI is managed by its members, which consists of the following:

 The chairman is nominated by the Union Government ofIndia.

 Two members, i.e., Officers from the Union FinanceMinistry.
One member from the Reserve Bank ofIndia.
 The remaining five members are nominated by the Union Government of India,
out of them at least three shall be whole-timemembers.
After the amendment of 1999, collective investment schemes were brought under
SEBI except nidhis, chit funds and cooperatives.
ORGANIZATION STRUCTURE:
Ajay Tyagi was appointed chairman on 10 February 2017, replacing U K Sinha, and
took charge of the chairman office on 1 March 2017.

Name Designation

Ajay Tyagi Chairman

Gurumoorthy Mahalingam Whole time member

S.K Mohanty Whole time member

Ananta Barua Whole time member

N S Vishwanathan Part-time member

Anand Mohan Bajaj Part-time member

K V R Murty Part-time member

List of Chairmens

Name From To

Ajay Tyagi 10 February 2017 present

U K Sinha 18 February 2011 10 February 2017

C. B. Bhave 18 February 2008 18 February 2011

M. Damodaran 18 February 2005 18 February 2008

G. N. Bajpai 20 February 2002 18 February 2005

D. R. Mehta 21 February 1995 20 February 2002

S. S. Nadkarni 17 January 1994 31 January 1995

G. V. Ramakrishna 24 August 1990 17 January 1994

Dr. S. A. Dave 12 April 1988 23 August 1990

FUNCTIONS AND RESPONSIBILITIES
The Preamble of the Securities and Exchange Board of India describes the basic
functions of the Securities and Exchange Board of India as "...to protect the interests
of investors in securities and to promote the development of, and to regulate the
securities market and for matters connected there with or incidental thereto".
SEBI has to be responsive to the needs of three groups, which constitute the market.

 issuers ofsecurities
 investors
 marketintermediaries
SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and
quasi-executive. It drafts regulations in its legislative capacity, it conducts
investigation and enforcement action in its executive function and it passes rulings
and orders in its judicial capacity. Though this makes it very powerful, there is an
appeal process to create accountability. There is a Securities Appellate Tribunal
which is a three-member tribunal and is currently headed by Justice Tarun Agarwala,
former Chief Justice of the Meghalaya High Court. A second appeal lies directly to
the Supreme Court. SEBI has taken a very proactive role in streamlining disclosure
requirements to internationalstandards.
Power
For the discharge of its functions efficiently, SEBI has been vested with the following
powers.

 To approve by−laws of Securitiesexchanges.

 To require the Securities exchange to amend theirby−laws.
 Inspect the books of accounts and call for periodical returns fromrecognised
Securitiesexchanges.
 Inspect the books of accounts of financialintermediaries.
 Compel certain companies to list their shares in one or more Securitiesexchanges.
SEBI committees
 Technical AdvisoryCommittee
 Committee for review of structure of infrastructureinstitutions
 Advisory Committee for the SEBI Investor Protection and EducationFund
 Takeover Regulations AdvisoryCommittee
 Primary Market Advisory Committee(PMAC)
 Secondary Market Advisory Committee(SMAC)
 Mutual Fund AdvisoryCommittee.
MAJOR ACHIEVEMENTS
SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively
and successively. SEBI is credited for quick movement towards making the markets
electronic and paperless by introducing T+5 rolling cycle from July 2001 and T+3 in
]
April 2002 and further to T+2 in April 2003. The rolling cycle of T+2 means,
Settlement is done in 2 days after Trade date. SEBI has been active in setting up the
regulations as required under law. SEBI did away with physical ACT.

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 COMPANY PROFILE

Type Public
BSE: 500247
Traded as
NSE: KOTAKBANK

Industry Financialservice

Founded 1985 (as Kotak Mahindra FinanceLtd)

Headquarters Mumbai, India

Keypeople Uday Kotak (Vice Chairman) &(MD)

Deposit accounts,Loans, Investment services, Business banking solutions,
Products
Treasury and Fixed income products etc.

Website www.kotak.com

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Kotak Mahindra Bank (BSE: 500247, NSE: KOTAKBANK) is an Indian
financial service firm established in 1985. It was previously known as KotakMahindra
Finance Limited, a non-banking financial company. In February 2003, Kotak
Mahindra Finance Ltd, the group's flagship company was given the license to carry on
banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is
the first company in the Indian banking history to convert to a bank. Today it has more
than 20,000 employees and Rs. 10,000 crore inrevenue.

Mr. Uday Kotak is Executive Vice Chairman & Managing Director of Kotak
Mahindra Bank Ltd. In July 2011 Mr. C. Jayaram and Mr. Dipak Gupta, whole time
directors of the Bank, were appointed the Joint Managing Directors of Kotak
Mahindra Bank. Dr. Shankar Acharya is the chairman of board of Directors in the
company. The Bank has its registered office at NarimanBhavan, Nariman Point,
andMumbai.

HISTORY

It bought stressed assets from a number of banks, at full loan value of Rs 1,000 crore
[3]
in 2005. In January 2011, the bank reported a 32% rise in net profit to Rs188 crore
for the quarter ended December 2010 against Rs. 142 crore the corresponding quarter
[4]
lastyear. KotakMahindrabankalsoreachedthetop100mosttrustedbrandsof
India in The Brand Trust Report published by Trust Research Advisory in 2011.

312
 The group specializes in offering top class financial services catering to every
segment of the industry. The various group companies include.
 Kotak Mahindra CapitalLimited
 Kotak Mahindra SecuritiesLimited
 Kotak MahindraInc
 Kotak Mahindra (International)Limited
 Global Investments Opportunities FundLimited
 Kotak Mahindra(UK) Limited Kotak SecuritiesLimited
 Kotak Mahindra Old Mutual Life Insurance CompanyLimited
 Kotak Mahindra Asset Management CompanyLimited
 Kotak Mahindra Trustee Company Limited
 Kotak Mahindra InvestmentsLimited
 Kotak Forex BrokerageLimited
 Kotak Mahindra Private-Equity TrusteeLimited

38
BOARD OF DIRECTORS

Dr. Shankar Acharya, Non-Executive Part-time Chairman

Dr. Shankar Acharya, (66 years) B.A. (Hons.) from Oxford University and Ph.D.
(Economics) from Harvard University, has considerable experience in various fields
of economics and finance. He is a Honorary Professor at the Indian Council for
Research on International Economic Relations (ICRIER) and a Board Member of
ICRIER and the Administrative Staff College of India (ASCI). He was Chief
Economic Adviser, Ministry of Finance, Member, Securities and Exchange Board of
India (SEBI) and Member, Twelfth Finance Commission. He has held several senior
positions in the World Bank, including Director of World Development Report (1979)
and Research Adviser. He was re-appointed as the Non-Executive Chairman of the
Bank at the Annual General Meeting held on 28th July 2009 for a period of three
years with effect from 20th July 2009. He is on the Board of Eros International Media
Ltd. and The South Asia Institute for Research and Policy (Private) Limited, Sri
Lanka. Dr. Acharya is the Chairman of the Audit Committee of the Bank, Member of
the Audit Committee of Eros International Media Limited and the Chairman of the
Shareholders’ Grievance/Investors’ Relations Committee of Eros International Media
Ltd.

39

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Mr. Uday Kotak, Executive Vice-Chairman and Managing Director

Mr. Uday Kotak, (53 years) holds a Bachelor’s degree in Commerce and an MBA
from Jamnalal Bajaj Institute of Management Studies, Mumbai. He is the Executive
Vice-Chairman and Managing Director of the Bank and its principal founder and
promoter. Under Mr. Kotak’s leadership, over the past 26 years, Kotak Mahindra
group established a prominent presence in every area of financial services from stock
broking, investment banking, car finance, life insurance and mutual funds. Mr. Kotak
is the recipient of several prestigious awards. He is a member of the Government of
India’s high level committee on Financing Infrastructure, the Primary Market
Advisory Committee of SEBI, Member of the Board of Governors of Indian Council
for Research on International Economic Relations, National Institute of Securities
Markets and National Council of CII and Chairman of the CII Capital Markets
Committee. He is also a Governing Member of the Mahindra United World College
ofIndia.

Mr. C. Jayaram, Joint Managing Director

Mr. C. Jayaram, (56 years) B. A. (Economics), PGDM-IIM, Kolkata, is Joint

Managing Director of the Bank and is currently in charge of the Wealth Management
Business of the Kotak Group. He also oversees the international subsidiaries and the

40

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alternate asset management business of the group. He has varied experience of over
34 years in many areas of finance and business and was earlier the Managing Director
of Kotak Securities Limited. He has been with the Kotak Group for 22 years and has
been instrumental in building a number of new businesses at Kotak Group. Prior to
joining the Kotak Group, he was with Overseas Sanmar FinancialLtd.

Mr. Deepak Gupta, Joint Managing Director

Mr. Deepak Gupta, (51 years) B.E. (Electronics), PGDM-IIM, Ahmedabad, is the
Joint Managing Director of the Bank and has over 26 years of experience in the
financial services sector, 20 years of which have been with the Kotak Group. He is
responsible for Group HR, administration, infrastructure, operations and IT. He is
also responsible for asset reconstruction business of the Bank. Mr. Dipak Gupta was
responsible for leading the Kotak Group’s initiatives into the banking arena. He was
the Executive Director of Kotak Mahindra Prime Limited. Prior to joining the Kotak
Group, he was with A. F. Ferguson & Company for approximately six years.

Mr. Asim Ghosh

Mr. Asim Ghosh, (64 years) is a B.Tech, IIT Delhi and MBA from the Wharton
School, University of Pennsylvania. Mr. Ghosh commenced his career in consumer
goods marketing with Procter & Gamble in the U.S. and Canada and worked
subsequently with Rothmans International as a Senior Vice President of one of

41

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Canada’s major breweries. He moved to Asia in 1989 as CEO of the Frito Lay (Pepsi
Foods) start up in India. Thereafter, he was in executive positions with Hutchison in
Hong Kong and India for 16 years. He continued as the CEO of Vodafone Essar
Limited till 31st March 2009 and as a Non-Executive Director till 9th February 2010.
He is also on the Board of Husky Energy Inc., other Husky Group Companies and
some Hutchison Whampoa Group Companies.

Dr. SudiptoMundle

Dr. SudiptoMundle, (63 years) graduated from St. Stephen College, and has a Ph.D.
in Economics from the Delhi School of Economics. He was a Director in the Strategy
& Policy Department, Asian Development Bank, and also India Chief Economist at
ADB’s India Resident Mission. He was appointed as a Director of the Bank with
effect from 21st July 2010. He is a Partner Director of The Governance Group,
Singapore; an Emeritus Professor & Member, Board of Governors, National Institute
of Public Finance and Policy; Member, Board of Governors of Institute of Economic
Growth; Member, Monetary Policy Technical Advisory Committee, Reserve Bank of
India; Member, National Statistical Commission, Government of India; and President
of PREETI Foundation. In his earlier career Dr. Mundle was Economic Advisor in the
Ministry of Finance, Govt. of India; and Reserve Bank of India Chair Professor at the
National Institute of Public Finance and Policy. He has also served in other academic
institutions including the Indian Institute of Management, Ahmedabad and Centre for
Development Studies, Trivandrum. He was a Fulbright Scholar at Yale University,
USA; and had visiting assignments at Cambridge University, UK; Institute of Social
Studies, Netherlands; and Japan Foundation,Japan

42

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Mr. Prakash Apte

Mr. Prakash Apte, (58 years)B.E. (Mechanical), is presently the Chairman of

Syngenta India Limited, one of the leading agri business companies in India. Mr.
Apte, in a career spanning over 35 years has considerable experience in various areas
of management and business leadership. During more than 15 years of very
successful leadership experience in agri business, he has gained varied knowledge in
various aspects of Indian Agri Sector and has been involved with many initiatives for
technology, knowledge and skills up gradation in this sector, which is so vital for
India’s food security. He was instrumental in setting up the Syngenta Foundation
India which focuses on providing knowledge andsupport for adopting scientific
growing systems to resource poor farmers and enabling their access to market. He is a
Director of Syngenta Foundation India and Kotak Mahindra Old Mutual Life
Insurance Limited. Mr. Apte is a member of Audit Committee of Syngenta India
Limited.

Mr. Amit Desai

Mr. Amit Desai, (53 years) B.Com, LLB, is an eminent professional with 31 years of
experience. He is also on the Board of Kotak Mahindra Trustee Company Limited
and Terra DeKM India Pvt. Ltd. Mr. Desai was a member of Audit Committee of
Kotak Mahindra Trustee Company Limited till 26th April2013.

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 Mr. Narendra P. Sarda

Mr. N.P. Sarda, (66 years) B.Com, F.C.A., is a Chartered Accountant for more than
40 years. He is a former partner of M/s. DeloitteHaskin& Sells, Chartered
Accountants, the past President of the Institute of Chartered Accountants of India (in
1993) and was a public representative Director of the Stock Exchange, Mumbai
(BSE)

AWARDS

Recent achievements

At Kotak Mahindra Group we take a client-centric view and constantly innovate to

provide you with the best of services and infrastructure. We have regularly
received accolades that stand testimony to our success in this endeavour. Some of
our recent achievementsare:

o Uday Kotak: “CEO of the Year Award” at CNBC-Awaaz CEO Awards2018

o Uday Kotak: USIBC Global LeadershipAward
th
o Jaimin Bhatt: CFO India Hall of Fame Honouree 2019 at the 9 AnnualCFO100

o Shanti Ekambaram: Most Powerful Women in Business 2018 by FortuneIndia

o Deepak Sharma: ‘NextGen Digital Leader' for the year 2019 at theDataquest

th
o 9 Annual CFO100 Programme bestows the CFO100 2019 Roll of Honour on the
followingindividuals:
 Gobind Jain in the Risk Managementcategory
 Himanshu Vasa in the Technology Category
 R Anantha Raman in the Internal Audit and ControlCategory

44

1
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o Bhargesh Ojha Senior Executive Vice President- General Counsel: GeneralCounsel
BFSI Category at the General Counsel Summit2018
o Pawan Mahajan, VP-Legal: Rising Star Under 40 at the 3rd Annual 40 under40

o Euromoney Awards for Excellence 2018: India’s bestbank

o Euromoney Awards for Excellence 2018: Best Bank in the Emerging Markets in the
Euromoney RegionalAwards
o AsiaMoney Best Bank Awards 2019, India: Best DomesticBank
o The Tata Mumbai Marathon 2019 Philanthropy Awards Niterecognises:
 Kotak Mahindra Bank as the Highest Fund RaisingCorporate
 KVS Manian, President – Corporate, Institutional and Investment Banking asthe
TMMLegend
 Shanti Ekambaram, President - Consumer Banking as the ChangeIcon
 Manish Kothari, Senior Executive Vice President & Business Head - Corporate
Banking as the ChangeChampion
o The Asset Triple A Country Awards2018:
 Kotak Mahindra Bank: Best Bank, Domestic –India
 Kotak Mahindra Bank: Best Acquisition Finance - Torrent Pharmaceuticals 36billion
rupee non-convertibledebentures
o Best Mid-Sized Bank Award: Business Today-Money Today Financial Awards2018-
2019
o The Asian Banker Financial Technology InnovationAward
 Best Innovation Centre by Financial Institution inIndia
o The Asian Banker - Banker’s ChoiceAwards:
 Best Cash Management Bank inIndia
 Best Supplier Relationship Management in India: KotakMahindra
 Best E-commerce Initiative, Application or Programme: “KotakALLPAY”
 Shekhar Bhandari as The Transaction Banker of the Year in Asia Pacific 2019
o Aadhaar Excellence Awards2018:
 Kalyan (W), Thane, Maharashtra: Best Performing Branch of Kotak MahindraBank
in terms of Aadhaar Generation &Update
rd
 Kotak Mahindra Bank: 3 Best Performing Private Bank in terms of Total Aadhaar
Generation &Update

o Best Bank for CTS Clearing Operations for year 2017byNPCI 45

410
o Icon of Indigenous Excellence Award at the 2nd Annual Economic TimesIconic
Brand Summit2018
o Kotak Silk: Things women are tired of hearing awarded gold under the Best useof
branded content for (Gold) by SocialSamosa
o 2018 DMA AsiaEcho:
 Karthi Marshan, Chief Marketing Officer, Kotak Mahindra Group: DMAKnight
Award
 Elizabeth Venkataraman, Executive Vice President – Marketing, KotakMahindra
Bank: DMA Marketing InfluencerAward
o 2018 DMA AsiaEcho:
 Best integrated campaign : 811 Shop Pay Bank Live(Gold)
 Best campaign for social good: #Thankyoufauji(Silver)
 Best integrated campaign: Kona Kona Cashfree(Silver)
 Best use of email marketing: Saving Inactive base CLCM(Bronze)
o India Banking Summit and Awards2018:
 Technology Innovator of the year for Innovative use of Data Storagedevices
 Customer Service Provider of the Year - PrivateBank
o 'The Sourcing Luminary' Award at the Machine Conference2018
o IDC Digital Transformation Awards2018
 Omni-experience innovator- Improve Customer experience and automate operations
 DX Leader- KEYA - AI Led VoiceBOT
o Voice Bot (Keya) selected as one of the Best 50 Innovative Applications in AI at the
NASSCOM AI Game Changer Awards2018
o Annual Report 2016-17 -“Silver Winner, Worldwide” at the League ofAmerican

o Annual Report 2017-18 – “Silver Winner, Worldwide” at the League ofAmerican

Communications Professionals (LACP) 2018 Spotlight AwardsGlobal

o Kotak Bank’s Annual Report has been adjudged as the recipient of ‘Certificate of
Merit’ for the year 2017 in the category ‘Private Sector Banks (including Co-
operative Banks SAFA Best Presented Annual Report Awards 2017
o Interact, the Real time omni-channel recommendation engine for retail bankwins
Best Data Science Project award at Cypher2018
o IR Magazine Forum andAwards:
46
 Kotak IR team: Runner Up, Best Investor Relations Team (LargeCap)
 Nimesh Kampani, SVP & Head-Investor Relations : Runner Up, Best Investor
RelationsOfficer
o The Asset Triple A DigitalAwards:
 Most Innovative Emerging Digital Technologies Project - Kotak MahindraBank:
WhatsApp Business API
o Financial Express India's Best Bank Awards 2018: Best Savings Bank Productaward
for 6% interestp.a.
th
o Runner Up : IAMAI 9 India DigitalAwards
 Best Digital API – Open Banking - Kotak MahindraBank
o BFSI Digital Innovation Award 2019 under the category “Enterprise Mobility”for
successfully executing and supporting the Enterprise Network-LAN
o Kotak 811 – India Invited Campaign wins “Silver” under the Integrated Campaign
category at MADDYS 2019 held by the Madras AdvertisingClub
o Kotak 811 recognised under the Enterprise Mobility Category by NetAppInnovation
Awards2018

KOTAK SECURITIES

o Machine Conference 2018: “Early adopter of Analytics” for using Analytics

extensively in clientmanagement
o The Asset Triple A Country Awards 2018: Best brokerage India in the BestAdvisors

o Asiamoney Brokers Poll 2018: India: Best Local Brokerage: KotakSecurities

th
 Bronze at IAMAI 9 India Digital Awards: Best Omni-Channel Campaign
Management & MarketingAutomation
o Best Retail IPO Bidding Member, 2018 byNSE
o ACEF:
 Gold for Email marketing & successful use oftechnology
 Silver for Data driven marketing & successful use of technology

47
 KOTAK WEALTH

o TOP report: "Wealth Management Publication” at the India Wealth Awards 2018,by

o 'Best Performing Private Bank 2018’ at the Professional Wealth ManagementThe

Banker Global Private Banking Awards2018
o Best Wealth Management Firm, India – Asian Private Bankers Indian 2017 AUM
league table
o Best Private Bank – Asian Private Banker 2018 Awards forDistinction
o The 2019 Euromoney Private Banking and Wealth Management Survey Rankedthe
following#1:
 Best Private Banking Services Overall: KotakMahindra
 Net-worth-specific services: Ultra High Net Worth clients (Greater than US$ 30
million): KotakMahindra
 Net-worth-specific services: High Net Worth clients (US$ 5 million to US$ 30
million): KotakMahindra
 Net-worth-specific services: Super affluent clients (US$ 1 million to US$ 5million):
KotakMahindra
 Family Office Services: KotakMahindra
 Research and Asset Allocation Advice: KotakMahindra
 Philanthropic Advice: KotakMahindra
o Ranked # 1 in Asian Private Banker’s 2018 India Onshore AUM leaguetable
 Kotak Mahindra CapitalCompany

o The Asset Triple A Country Awards 2018: Best M&A India - TataChemicals
US$400 million sale of the urea business to YaraInternational

48
BANKING

 ICAIAward
Excellence in Financial Reporting under Category 1 - Banking Sector for
the year ending 31st March, 2010
 Asiamoney
Best Local Cash Management Bank 2010
 IDGIndia
Kotak won the CIO 100 'The Agile 100' award 2010
 IDRBT
Banking Technology Excellence Awards Best Bank Award in IT
Framework and Governance Among Other Banks' - 2009
Banking Technology Award for IT Governance and Value Delivery, 2008
 IR GlobalRankings
Best Corporate Governance Practices - Ranked among the top 5 companies
in Asia Pacific, 2009
 FinanceAsia
Best Private Bank in India, for Wealth Management business, 2009
 Kotak Royal Signature CreditCard
Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009
 IBA Banking TechnologyAwards
Best Customer Relationship Achievement - Winner 2008 &
2009 Best overall winner, 2007
Best IT Team of the Year, 4 years in a row from 2006 to
2009 Best IT Security Policies & Practices, 2007
 Euromoney
Best Private Banking Services (overall), 2009
 Emerson Uptime ChampionAwards
Technology Senate Emerson Uptime Championship Award in the
BFSI category, 2008

WEALTH MANAGEMENT

 FinanceAsia
Best Private Bank India - FinanceAsia 2010

49

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MISCELLANEOUS

 Best Local Trade Bank inIndia

The UK based Trade & Forfaiting Review awarded Kotak Mahindra Bank
Ltd. the Bronze Award in the category of Best Local Trade Bank in India
at the TFR Awards 2011.
 LACP Vision Awards 2010 for Annual Report 2010-
11 Platinum Award - Best among Banking Category,
APAC Gold Award - Most Creative Report, APAC
Ranked No. 21 among Top 50 Reports,APAC
Ranked No. 87 among the World's Top 100 Annual Reports
 Businessworld
'Most Valuable CEO' overall, 2010 awarded to Mr. Uday Kotak,
Executive Vice Chairman & Managing Director
 CNBCTV 18
'Best Performing CFO in the Banking/Financial Services sector by
CNBCTV 18 CFO Awards 2010 awarded to Mr. Jaimin Bhatt
 GIREM
GIREM awarded Kotak Realty Funds Group, the "Investor of the
Year" Award for 2009
 IBA Banking TechnologyAwards
Best Use of Business Intelligence - up, 2008
Best Enterprise Risk Management - Runner up, 2008
 The Great Places to WorkInstitute,
India Best Workplaces in India,2008
 Hewitt
10th Best Employer in India, 2007, 2008 & 2009
 Financial Insights Innovation Award
Best Innovation in Enterprise Security Management in the Asia
Pacific Region, 2009
 Frost &Sullivan
Best Passenger Vehicle Finance Company in India, 2006

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  CNBC TV18
Indian Business Leader of the Year, 2008 awarded to Uday Kotak,
Executive Vice Chairman & Managing Director

INTERNATIONAL ASSET MANAGEMENT

 Global Investor (EditorialAward)

Asian Asset Manager of the Year, 2009

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ASSET MANAGEMENT

 ICRA Mutual Fund Awards2009

Kotak Liquid (Regular Plan) - Ranked as a Seven Star Fund for its 1
yearperformance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 1
yearperformance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 3
yearperformance
Kotak 30 - Ranked as a Five Star Fund for its 3 year performance

INVESTMENT BANKING

 FinanceAsia
Best Investment Bank in India,
2010 Best Equity House in India,
2010 Best Broker in India, 2010
 Asiamoney
Best Domestic Equity House, 2010
Best Local Brokerage in the Asiamoney Brokers Poll – 2010
 GlobalFinance
Best Investment Bank in India, 2010
 Euromoney Real EstatePoll
Best Bank for Equity Finance in India,2010
 Asset AsianAwards
Best Domestic Investment Bank, 2010
 FinanceAsia Country Awards forAchievement
Best Investment Bank in India, 2006, 2007, 2008, 2009 &
2010 Best Equity House in India, 2008 & 2010
 Asiamoney Best Domestic BankAwards
Best Domestic Equity House, 2008, 2009 & 2010
 IFR Asia
India Equity House of the Year, 2008
 GlobalFinance
Best Investment Bank in India, 2008, 2009 & 2010

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SECURITIES

 FinanceAsia
Best Broker in India - 2010
 CNBC Financial AdvisorAwards
Best Performing Equity Broker, 2008 & 2009
 Asiamoney BrokersPoll
Best Local Brokerage, 2006, 2007, 2008 &2009
Best Analyst in India – Sanjeev Prasad, 2005, 2006, 2007, 2008 & 2009
 FinanceAsia Country Awards forAchievement
Best Broker in India, 2006, 2009 & 2010
 Thomson Extel SurveysAwards
India's Leading Equity House, 2007
 SuperBrands Council ofIndia
Business Superbrand India,
2008

418
53
CHAPTER-IV DATA
ANALYSIS &
INTERPRETATION

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PERFORMANCE EVALUATION
Performance Evaluation is specification of method and procedure for accruing
the information needed to structure to solve the problem. Various statistical tools are
used for the study are average, standard deviation, variance, covariance, correlation
and beta values and the study has conducted on companies like HCL TECH, TCS,
SATYAM, WIPRO, INFOSYS, PATNI COMP,FINANCIAL TECH, SASKEN
COMM, TECH MAHINDRA,GEOMETRIC, MPHASIS, NIIT TECH,
HEXAWARE, INFOTECH, TATA ELXI, POLARIS, HINDUJA, SAKSOFT, BLUE
STAR, RAMCO, SOFTPRO, SONATA, CRANESSOFT, CYBERTECH,
ONWARDTECH, GOLDSTONE, UTV, SUBEX AND MEGASOFT as theyare
listed commonly on both stock exchanges.
For evaluation of the study 30 stocks monthly return are taken for a period of 24
months (i.e. of January 2011 to December 2014) where first day trading of a month is
consider as opening price and last day of trading of a month is consider as closing
price of stock. After collecting the all 24months values monthly returns are calculated
by using the standard formula i.e. (P1-P0/P0)*100, like this for all 30 companies
return were calculated from NSE and BSE. Next step is finding of average return of
securities by sum of the monthly return /number of months.
Second thing is calculation of risk which can be know with a formula of

STANDARD DEVATION

n
(1/n-1∑ t= rit—‾ri)

Where = n is number of securities

rit is historical or ex-post return generated by ith stock in time period‘t’.

ri is excepted return generated by ith stock in time period ‘t’.

This tool measures the variability of returns from the expected values or volatility of
security.

Apart from calculation of risk and return values of securities for systematic risk beta
values are calculated for evaluating the risk of stocks with regards to market change
and how much volatile of risk is associated with market. Correlations of all

55

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 thirtystocks were calculated for better understanding of stocks relation among them
for both BSE and NSE.

RETURNS VALUES OF NSE COMPANIES:

HCL Patni Financial Tech
Tech TCS Satyam Wipro Mastek Infosys Computer Tech SaskenComm Mahindra
1.932 -0.243 -3.319 2.316 2.949 1.938 2.805 -0.124 0.649 1.820

NIIT Hexaware Infotech Tat Hinduja Blue

a
Geometric Mphasis Polaris Saksoft
Tech Tech Enter Elxsi venture Star Info
0.481 4.910 0.507 2.373 2.268 0.510 3.989 -0.949 -1.963 -0.451

Ramco Softpro Sonata Cranes Onward Goldstone UTV Subex

Cybertechsys&sof Megasoft
System system Software Soft technology Tech Sof System
t
-0.779 3.189 -1.091 -5.706 -0.589 -0.487 -2.684 -1.671 -1.833 -4.046

Table.1

RISK VALUES OF NSE COMPANIES:

HCL Patni Financial Tech
Tech TCS Satyam Wipro Mastek Infosys Computer Tech SaskenComm Mahindra
17.852 16.127 23.965 14.316 23.040 11.385 18.762 28.370 26.951 23.462

Blue
NIIT Hexaware Infotech Tata Hinduja Star
Geometric Mphasis Tech Tech Enter Elxsi Polaris venture Saksoft Info
23.039 15.876 23.230 21.569 21.066 18.789 23.683 24.531 15.962 20.026

Ramco Softpro Sonata Cranes Onward Goldstone UTV Subex

Cybertechsys&sof Megasoft
System system Software Soft technology Tech Soft System
24.796 30.215 20.149 13.469 18.354 22.865 35.910 20.124 27.405 23.709

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 Table.2
RETURNS VALUES OFBSE COMPANIES:
HCL Patni Financial Tech
Tech TCS Satyam Wipro Mastek Infosys Computer Tech SaskenComm Mahindra
1.160 0.282 -3.795 2.200 3.141 1.879 2.668 -0.624 1.001 1.452

Blue
NIIT Hexaware Infotech Tata Hinduja Star
Geometric Mphasis Tech Tech Enter Elxsi Polaris venture Saksoft Info
0.140 4.350 1.224 1.981 1.314 0.489 2.737 -1.638 -10.442 -0.042

Ramco Softpro Sonata Cranes Onward Goldstone UTV Subex

System system Software Soft Cybertechsys&sof technology Tech Soft System Megasoft
-0.298 2.233 -0.264 -4.963 -2.398 -1.811 -2.881 0.014 -1.821 -3.965

Table.3
RISK VALUES OF BSE COMPANIES:
HCL Patni Financial Tech
Tech TCS Satyam Wipro Mastek Infosys Computer Tech SaskenComm Mahindra
17.336 17.055 23.224 14.611 23.107 11.507 18.697 27.420 27.752 23.002

Blue
NIIT Hexaware Infotech Tata Hinduja Star
Geometric Mphasis Tech Tech Enter Elxsi Polaris venture Saksoft Info
24.111 16.746 23.711 20.792 19.275 18.944 23.450 25.102 13.715 17.840

Ramco Softpro Sonata Cranes Onward Goldstone UTV Subex

Cybertechsys&sof Megasoft
System system Software Soft technology Tech Soft System
24.992 28.393 20.229 13.857 17.120 20.672 35.856 20.275 26.977 24.275

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Table.4

58

514
59
60
 61

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For the performance evaluation we have used monthly closing price of stocks and the
study Period of two years. Return on the market taken from standard deviation of
market is 20.633& Return on the market taken from standard deviation of market is
20.353.
For Analysis of study a statistical tool has been used i.e. T-test .to
analysis whether there is any DIFFERENCE of risk and return of stocks listed
commonly on NSE and BSE. For evaluation of interpretation of study the hypothesis
stated whether “Is there no significance difference of risk and return values of
security listed on NSE and BSE” as null hypothesis and alternate hypothesis “Is there
significance difference of risk and return values of security listed on NSE and BSE”.
For the conclusion of part objective in the study t -test measure is used; graphs are
represented for the easily comparative result of return andrisk

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Here in the graphs the symbols are quoted as
H = HCL Tech
T = TCS
S = Satyam
W = Wipro
M = Master
I = Infosys
PC = Patni Computer
FT = Financial Tech
SC = Sasken Communications
TM = Tech Mahindra
G = Geometric
MP = Mastek
N = NIIT Tech
HT = Hexaware Technologies
IE = InfoTech Enter
TE = Tata ELXI
P = Polaris
HV = Hinduja Venture
Sak = Saksoft
BS = Blue Star Info
RS = Ramco System
SS = Softpro System
Son = Sonata Software
CS = Cranes Soft
CSS = Cybertech System & Software
OT = Onward Technology
GT = Goldstone Tech
U = UTV Soft
SSy = Subex System
Me = Megasoft

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 40.000
GT
35.000
30.000 FT
SS
SC SSY
25.000 S P HV RS
M TM G N OT Me
HT IE
20.000 BS Son U
H PC TE CSS
T MP Sak
15.000 W Cs
I
10.000

5.000 MP P
W MPC HT IE SS
0.000HT I FT SC TM G N TE BS RS CSS OT
HV SakSon GT U SSY
S Me
-5.000 Cs
Risk Return
-10.000

GRAPH1

Comparison Of NSE & BSE Risk

40.000
35.910

35.000
30.215
30.000 28.370
27.405
26.951
24.53124.796
23.965 23.462 23.709
25.000 23.040 23.039 23.230 23.683
22.865
21.569
21.066 20.02620.149 20.124
18.762 18.789
20.000 17.852 18.354
16.127 15.876 15.962
15.000 14.316
13.469
11.385

10.000

5.000

0.000
On Cybwa Gol
Blu e Sta
Sonertrd dstSu ata Cra ech tec on UT bexM

HCL Sat Ge
PatniSaskenomSakr RamcoSof nes sys hn e V Syseg
Tec ya Wi
ComputerFinCommTech etriMphasisNIITTechHexa
Infotech sof Inf SystemSoftpr twa Sof &s olo Tec Sof teas
h TCSm pro MastekInfosysancialTech Mahindra c wareTech EnterTataElxsiPolarisHindujaventure t o osystemre t of gyh tmoft

Risk(NSE) RISK(BSE)

GRAPH2

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 40.000
GT

30.000 SS
FT SC SSY
G HV RS
TM Me
S M N P
20.000 PC HT IE TE Son OTU
HT MP BS CSS
W Sak Cs
I
10.000
MP
WM PC P SS
0.000 H T I FT SC TM G N HT IE U
TEBSRSSon HV OT
CSS GT SSY
S Cs Me

-10.000 Sak

-20.000

Risk(BSE) Return(BSE)

GRAPH3

40.000

30.000

20.000

Risk
10.000 Return

0.000
HC Co M O M
Sat Wi M Inf ph NI Ta Sa Cy n UT eg
L m IT ta Po Hi ks be w V as
So
Te TC ya pr ast os pu Fin Sa Te asi Te He Inf El lar nd of Ra So na rt ar G So Su of
-10.000 ch S m o ek ys ter an sk ch Ge s ch xa ot xsi is uj t Bl m ftp ta ec d ol ft be t
cia en M o w ec a ue co ro So Cr h te ds x
ar h ve St Sy sy ft an sy ch to Sy
l Co ahi m e En st st s& no st
nt ar w es ne
Pa Te m nd etr Te te ur Inf e e ar So so lo Te e
-20.000 tni ch m ra ic ch r e o m m e ft f gy ch m

GRAPH4

65

1
6
 6.000
MP
4.000 MP P
MSS
PC M HT P
2.000 H W I TM HT IE SS
H SC TM N IE
SC G N TE
T G
0.000 T FT
FT
BS RS
BS RS
Son CSS OT U
HV Son
HV U
-2.000 Sak OT SSY
CSS GT
S GT
-4.000 S Me
Cs
-6.000 Cs

-8.000

-10.000 Sak

-12.000 Return(NSE) Return(BSE)

GRAPH5

6.000

4.000

2.000

0.000 HCLTechTCSSatyamWiproMastekInfosysPatniComputerFinancialTechSaske mTechMahindraGeometric MphasisNIITTechHexawareTechInfotechEnterTat

aElxsiPolarisHindujaventureSaksoftBlueStarInfoRamcoSystemSoftprosystemSonataSoftwareCranesSoftCybertechsys&sofOnwardtechnologyGoldstoneTechUTVSoftSubex

Me
Syst gas
-2.000emoft
Return(NSE)
-4.000Return(BSE)

-6.000

-8.000

-10.000

-12.000

GRAPH6

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 40.000

GT
35.000

30.000 SS
FT SS
FT SC SSY
SC SSY
25.000 HV RS Me
TM G
S M TM G N P HV
OT Me
S N
HT IE
HT OT
20.000 BS Son U
H PC IE TE BS CSS
HT MP CSS
T MP Sak
15.000 W
Sak Cs
I
10.000

5.000

0.000

Risk(NSE) Risk(BSE)

GRAPH 7

40.000

35.000

30.000

25.000

20.000

15.000
Risk(NSE)
Risk(BSE)
10.000

5.000

0.000
HCL
Tec hT CSSa tya m
Wi pro Ma ste kI nfosy sPa tni Co mp ute
rFi nanc ia lTech Sas ke nCo mm Tec hM ah indr
aG eom etri cM ph asis
NII
TTe
ch Hexa wareTe
ch Inf otec hE nter Tat aE lxsi Pol aris H
nd u
ja v ent ure Sak sof tBl ueSt arI nfoR am coS yst
em

Softpr o
systemSonataSoftwareCranesSoftCybertechsys&sofOnwardtechnologyGoldstoneTechUTVSoftSubexSystemMegasof t

GRAPH 8

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COMPARISON OF NSE & BSE RISK AND RETURN VALUES

40.000

30.000

20.000
Return(BSE)
Return(NSE)
10.000
Risk(BSE)
Risk(NSE)
0.000
HC Sa Co Ge NII So Cy
L ty M mp C om TT Inf Pol Sa Ra na be Go
Te a ast ute o etri ec ot ari ks mc
-10.000 ta rt lds
ch m ek r m c h ec s oft o So e to Sub
m h Sy ft ch ne ex
Sa En ste wa sy Te Syst
Pa sk ter m re s ch em
-20.000 tni en &s
of

GRAPH 9

68
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Analysis of Returns of the Different Stocks by Using T-Test:

Sample data is consisting of 30 common companies listed on NSE nifty and BSE
Sensex.
COMPANY NAME RETURN ON NSE RETURN ON BSE
HCL Tech 1.932 1.160
TCS -0.243 0.282
Satyam -3.319 -3.795
Wipro 2.316 2.200
Mastek 2.949 3.141
Infosys 1.938 1.879
Patni Computer 2.805 2.668
Financial Tech -0.124 -0.624
SaskenComm 0.649 1.001
Tech Mahindra 1.820 1.452
Geometric 0.481 0.140
Mphasis 4.910 4.350
NIIT Tech 0.507 1.224
Hexaware Tech 2.373 1.981
Infotech Enter 2.268 1.314
Tata Elxsi 0.510 0.489
Polaris 3.989 2.737
Hinduja venture -0.949 -1.638
Saksoft -1.963 -10.442
Blue Star Info -0.451 -0.042
Ramco System -0.779 -0.298
Softpro system 3.189 2.233
Sonata Software -1.091 -0.264
Cranes Soft -5.706 -4.963
Cybertechsys&sof -0.589 -2.398
Onward technology -0.487 -1.811
Goldstone Tech -2.684 -2.881
UTV Soft -1.671 0.014
Subex System -1.833 -1.821
Megasoft -4.046 -3.965

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As sample design is less than 30 t-test is applicable for above data.

μ 1= average return of 10 different security listed on NSE.

μ 2= average return of 10 different security listed onNSE.

NULL HYPOTHIES: it states that there is no significance difference of return on

securities listed commonly on NSE and BSE.

H0:μ1=μ2

Alternative hypothesis: it state that there is significance difference of return on

securities listed commonly on NSE and BSE.

H1:μ1=μ2
NSE BSE
Name
VALUE VALUE
Mean 0.223 -0.223
Variance 6.002 8.788
Observations 30 30
Pearson Correlation 0.823312
Hypothesized Mean
Difference 0
Degee of freedom 8
t Stat 19.05
P(T<=t) One-tail
t Critical One-tail 1.645
P(T<=t) two-tail
t Critical two-tail 1.96

CONLUSION:The calculated t-test value is 19.05, which is greater than the table
value of 1.960 at 5%level of significance. Since the calculated value is less than the
table value its lie in rejected area it inferred that it accepted null hypothesis by stating
that it state that there is no significance difference of return on securities listed
commonly on NSE and BSE.

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Anal

ysis of risk of the different stocks by using t-test

Company Name NSE Values BSE Values
HCL Tech 17.852 17.336
TCS 16.127 17.055
Satyam 23.965 23.224
Wipro 14.316 14.611
Mastek 23.040 23.107
Infosys 11.385 11.507
Patni Computer 18.762 18.697
Financial Tech 28.370 27.420
SaskenComm 26.951 27.752
Tech Mahindra 23.462 23.002
Geometric 23.039 24.111
Mphasis 15.876 16.746
NIIT Tech 23.230 23.711
Hexaware Tech 21.569 20.792
Infotech Enter 21.066 19.275
Tata Elxsi 18.789 18.944
Polaris 23.683 23.450
Hinduja venture 24.531 25.102
Saksoft 15.962 13.715
Blue Star Info 20.026 17.840
Ramco System 24.796 24.992
Softpro system 30.215 28.393
Sonata Software 20.149 20.229
Cranes Soft 13.469 13.857
Cybertechsys&sof 18.354 17.120
Onward technology 22.865 20.672
Goldstone Tech 35.910 35.856
UTV Soft 20.124 20.275
Subex System 27.405 26.977
Megasoft 23.709 24.275

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As sample design is less than 30 t-test is applicable for above data.

μ 1= average risk of 10 different security listed onNSE.

μ 2= average risk of 10 different security listed onNSE.

NULL HYPOTHIES: it states that there is no significance difference of risk on

securities listed commonly on NSE and BSE.

H0:μ1=μ2

Alternative hypothesis: it state that there is significance difference of risk on

securities listed commonly on NSE and BSE.

H1:μ1=μ2

NSE BSE
Name
Values Values
Mean 21.63327 21.33472
Variance 27.50962 27.4258
Observations
Pearson Correlation 0.982784
Hypothesized Mean
Difference
Degree of freedom 58
t Stat 5.654
P(T<=t) One-tail
t Critical One-tail 1.645
P(T<=t) two-tail
t Critical two-tail 1.96

CONLUSION:The calculated t-test value is 5.654, which is greater than the table
value of 1.960 at 5%level of significance. Since the calculated value is greater than
the table value its lie in accepted area it inferred that it accepted null hypothesis by
stating that it state that there is a significance difference of return on securities listed
commonly on NSE andBSE.

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CHAPTER-V
FINDINGS
CONCLUSIONS
&SUGGESTIONS

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 SUGGESTIONS
The conclusion is an indication of economic representation of country. As in India
still we don’t have decoupling facility due to which an investor can use the
opportunity of by buying and selling the securities from either of exchanges that is
NSE orBSE.
The conclusion is not just based on t test but this even can be conclude by
comparing the results of stocks return calculated by collecting their closing prices from
secondary source that is from NSE and BSE historical data.

FINDINGS
1. Even throw the company have good profitability the company shows
concentrating on operating expenses to decrease in profitability. Compared to
last year it isdecreased.
2. The company should raise its equity share capital to fit and to company with
generally acceptednorms.
3. On the basis of the analysis and interpretations of various ratios and financial
statements in chapters 4 &5, the following findings and suggestions aremade.

4. The profitability position of the company is good and it can beimproved.

CONCLUSION

An investor as many opportunities to invest in different avenues through

which he can earn returns on invest with different types of risk with thatinvestment.
But different avenues has different risk apatite with them, an investor has to
choose how much risk he can take towards his investment.
By Investment in stock securities return and risk cannot be predict that easily as a
risk free feature does not have in equity shares.
Risk and return are two sides of one coin generally it has higher the risk high return
and lowers the risk low return.
Some of investor may have a notation that by buying the stock from NSE or BSE it
makes the difference of return in investment and their riskness towards the stock, but
with this comparative study it got conclude that there is no significance difference in
risk and return to an investor either by investing in companies listed commonly on
both exchanges i.e. NSE OR BSE.
BIBLIOGRAPHY

BOOKSREFERED:
Security Analysis and Portfolio Management
Author V.K BHALLA
th
Edition 12
Investment Management
Topic: Investment, page no.3, 4
: Risk page no.590

WEBSITES:

www.nseindia.com

(Home>equities>market information>historical data>security-wise price volume data)

www.bseindia.com

http://www.bseindia.com/histdata/stockprc.asp

http://www.bseindia.com/histdata/hindices.asp

http://www.bseindia.com/about/introbse.asp

http://www.bseindia.com/about/abindices/bse30.asp

www.answers.com

http://www.answers.com/risk

www.investopidia.com

http://www.investopedia.com/dictionary/default.asp

JOURNALS REFERRED:

Indian Journal of Finance August September, 2011page 3 and 27