Registration Form

1. Name of the Student: Mohammad Abbas

2. Name of the Organization: NA

3. Name and details of Co Guide in the Organization: NA

4. Proposed dissertation area: Finance.

5. Proposed dissertation topic: Performance Analysis of Information Technology Stocks

in NIFTY Fifty.

6. Write a brief note on your topic:

Investors always consider risk and return while making any investment
decisions. The amount of risk assumed and the amount of expected return have
positive relationship. Greater the risk, Greater the return, lower the risk, lower the
return. Rational investors would have some degree the risk only if he
is adequately compensated for it. The risk can be broadly classified into systematic
and unsystematic risk. The systematic risk is related to economic trend which affect
the whole market and cannot be eliminated by diversification of portfolio, while the
unsystematic risk can be controlled by proper measures.

Student’s Signature: Faculty Guide Signature:

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 Performance Analysis of Information Technology
Stocks in NIFTY Fifty.
Synopsis submission in partial fulfilment of the requirements for the

Master Thesis Work to be carried out in Fourth Semester

MASTER OF BUSINESS ADMINISTRATION

OF
BENGALURU CITY UNIVERSITY

By
MOHAMMAD ABBAS
MB197255

Under the guidance of

BHARATH M
Assistant Professor
.

SESHADRIPURAM INSTITUTE OF MANAGEMENT STUDIES

2020-21
Title:
Performance Analysis of Information Technology Stocks in NIFTY Fifty.

Introduction:
An investment return is characterized by two important factors that are risk and
return. Risk implies future uncertainty about deviation from expected earnings or expected
outcome. Risk measures the uncertainty that an investor is willing to take to realize gain from
an investment. Usually, risk and return have a direct relationship higher the risk, higher the
return. Risk is associated with the holding of an investment over the period. There are various
types of risk but two important risk is systematic risk and unsystematic risk which cannot be
diversified. It is caused by factor which are beyond the control of the company.

Investment, the process of exchanging income during one period of time for an asset
that is expected to produce earnings in future periods. Thus, consumption in the current
period is foregone in order to obtain a greater return in the future. For an economy as a whole
to invest, total production must exceed total consumption. Throughout the history of
capitalism, investment has been primarily the function of private business; during the 20th
century, however, governments in planned economies and developing countries have become
important investors.

The companies listed with NIFTY50, show significantly diversified behavior with respect to
their price movements. Thus, the risk and returns associated with the stocks found to be wide-
ranging in nature. Also, the range of the beta factors of these stocks is significantly varied. As
the risk return and beta are the important tools to analyses the stock market.

Need for the study:

This study focuses on analyses of information technology stocks of nifty fifty based
on the returns offered by the stocks risk associated with these stocks and respective beta
factors and to analyze the systematic and unsystematic risk of information technology stocks.
Statement of the problem:

Information Technology (IT) industry has played a major role in the Indian economy.
In order to have a good benchmark of the Indian IT sector. We know investing in share
market is not an easy task. It is subjected to large fluctuation especially when it comes to
information technology sectors, because apart from conventional factors, sector is directly
affected by non-conventional factors such as IT Acts and policies issued by ministry of
electronics and information technology. Thus, this study aims to conduct risk and return
analyses of information technology stocks in nifty fifty.

Objectives of the study:

1. To study the risk and return of Information Technology (IT) stocks in nifty fifty.
2. To analyze the stock movements with respect to nifty fifty IT index.
3. To find the relationship between returns and volatility with beta and standard
deviation with respect to nifty fifty.
4. To suggest investors based on the outcome of the study.

Research Methodology:

The study is analytical in nature. The research methodology includes the following

Sources of Data:

Secondary data is used for the collection of data.

Secondary Data

Secondary data are collected through various Books, Journals, Research papers. Articles and
National Stock Exchange Website.

Tools for Data Collection

Data will be collected from National Stock Exchange website. Other sites like money
control, NDTV profit and so on will be referred.
Plan of analysis:

Mean, Standard deviation and Beta with respect to individual stocks and Variance and
Correlation with respect to stock, IT Indices and Nifty indices will be analyzed. Comparison
of Stock return v/s It Indices and Nifty will be done for better understanding of risk.

Student’s Signature: Faculty Guide Signature