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Equity Analysis
Decisions like whether you should buy or sell when trading in shares market is a difficult
task to do. It requires split hair analysis of the market to do so one also needs to have excellent
understanding of market.
Equity analysis decide the stance one would take in the share trading industry finding out the
high and lows in market and analyzing the equity is of utmost important before making any
sort of investment. Technical analysis fundamental analysis and other form a part of the equity
analysis.
Equity analysis examines all the essentials techniques and teaches you how to apply them
successfully. It incorporates sections on technical analysis and economic value added valuation
modules and the principles behind equity analysis in the context of both companies and
markets.
1) Learn how to interpret financial statements.
2) Learn how to most effectively analyze, information to forecast the future.
Equity analysis treats stocks valuation as a practical, hands on tool rather than a vague,
theoretical exercise and covers the entire valuation process from financial statements analysis
through the financial investment.MOSTLY IT IS READ BY
Private bankers, treasurers, corporate financial managers, risk managers, financial and equity
analysis.
Equity / ordinary shares capital, as a long term source of finance, represents ownership
capital / securities and its owners – equity- holders / ordinary shareholders – share the reward
and risk associates with the ownership of corporate enterprises. It is also called ordinary share
capital in contrast with preference share capital which carries certain preferences / prior rights
in regard to income and redemption.
When a company is formed, it first issues equity shares to the promoters. As the need for
financing increases, the company may issue ordinary shares to specific and small numbers
privately to promoters, relatives, friends, business associates, employees, financial institutions,
mutual funds, venture capital funds and so on. As the company grows further, it raises capital
from the public.
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Features
1) Residual Claim:
Equity shareholders have a residual claim on the income of a company. They have a claim
on income left after paying dividend to preference shareholders.2) Residual Claim on Assets:
Equity shareholders have a residual claim on ownership of company’s assets.
3) Right to Control:
Equity shareholders are the owners of the company. They have voting rights in the meeting of
the company and have a control over the working of the company.
4) Maturity:
Equity shares provide permanent capital to the company and cannot be redeemed during the
life time of the company. Under the companies’ act 1956, a company cannot purchase its own
Shares.
5) Limited Liability:
Another distinct feature of equity shares is limited liability. Thus although, equity
shareholders are the real owners of the company, their liability is limited to the value of share
they have purchased.
• Equity does not create any obligation to pay a fixed rate of dividend.
• Equity can be issued without creating any charge over the assets of the company.
• It is a permanent source of capital and the company has not to repay it except under
liquidation
In case of profits, equity shareholders are the real gainers by way of increased dividends and
appreciation in the value of shares
Need of the Study
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To start any business capital plays major role. Capital can be acquired in two ways by issuing
shares or by taking debt from financial institutions or borrowing money from financial
institutions. The owners of the company have to pay regular interest and principal amount atthe end
The role of equity analysis is to provide information to the market. An efficient market relies
on information: a lack of information creates inefficiencies that result in stocks being
misrepresented (over or under valued). This is valuable because it fills information gaps so that
each individual investor does not need to analyze every stock thereby making the markets more
efficient.
Objectives
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• To analysis the fluctuation in IT shares.
• The data which is collected from IT companies is opening price and closing price of
daily trading
• Comparative analysis of three tough competitors Wipro, Infosys and TCS through
fundamental analysis.
• Suggesting as to which company’s shares would be best for an investor to invest.
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Research Methodology
Research design or research methodology is the procedure of collecting, analyzing and
interpreting the data to diagnose the problem and react to the opportunity in such a way where
the costs can be minimized and the desired level of accuracy can be achieved to arrive at a
particular conclusion.
The methodology used in the study for the completion of the project and the fulfillment of the
project objectives.
Primary Data:
The sample of the stocks for the purpose of collecting Primary data has been selected on the
basis of Random Sampling.The stocks are chosen in an unbiased manner and each stock is
chosen independent of the other stocks chosen. The stocks are chosen from the IT sector.
The sample size for the number of stocks is taken as 3 for fundamental analysis of stocks as
fundamental analysis is very exhaustive and requires detailed study.
Secondary Data:
Secondary data is a information that is obtained from those sources other than direct sources
and the information collected through the mentioned base.
• Companies hand book.
• Magazines and journals.
• Text book published on equity analysis
• Web sites.
•Other records.
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Statistical Tools
1. Return = v e - v b
V b = value at the beginning
V e = value at the end
2. Variance (σ2
)= (x-µ)2
3. R = SUM x*y Square root of x^2 * square root of y^2
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Limitations
• This study has been conducted purely to understand Equity analysis for investors.
• The study is restricted to three companies based on Fundamental analysis.
• Data collected only for limited number of IT companies that is Wipro, Infosys’s and
Tata.
• The data which is collected mostly primary data. If it is necessary secondary data.
• Detailed study of the topic was not possible due to limited size of the project. Suggestions and
conclusions are based on the limited data of 6 months.
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Review Literature
Applied Equity Analysis treats stock valuation as a practical, hands-on tool rather than a vague,
theoretical exercise—and covers the entire valuation process from financial statement analysis
through the final investment recommendation. Its integrated approach to valuation builds viable
connections between a firm’s competitive situation and the ultimate behavior of its common
stock.
Applied Equity Analysis emphasizes techniques that work on a day-to-day basis,
rather than traditional but often impractical academic approaches. By combining a solid
discussion of finance and investment theory with techniques popular among today's buy- and
sell-side analysts, it presents a picture of stock investment analysis that is analytically rigorous,
aggressively uncompromising, and based on earnings the true driving force of Wall Street.
The ultimate goal of the equity analysis is the exploitation of any difference between
a stock's price and its value. Equity analysis must focus on a firm's ability to produce returns
that exceed capital costs, and then estimate the firm's future power to maintain and increase
those returns in marketplace.
- James English (May 14, 2001) McGraw-Hill
Propelled by India’s economic growth, Indian securities market is continuing to
provide opportunities for wealth creation. However, a timely and accurate valuation of
securities is imperative for arriving at better investment decisions. Equity Research and
Valuation explains the various steps involved in evaluating securities. It dwells on the concepts
of equity research and valuation, macro and micro economic analyses and highlights the role of
regulators in handling stock market bubbles. Porte’s five force analysis and competitive
strategy, and Hirschman’s index of industry concentration ratio are also included. The book
also covers the various financial statements on company analysis and discounted cash flow
valuation models.
Dun & Bradstreet ( December 2007) Tata McGraw Hill
Technical analysts analyze the historical graphical pattern of stock prices. They also look at the
graph line drawn by stock moving averages over different periods. They are really interested if
the current price line breaks through up or down the moving average line. From this, they
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derive a stock outlook for the future price of the stock. Fundamental analysis is concerned with
the historical financial performance of the company. A security analyst analyzing historical
data will in turn make a projection of the future performance of this company (revenues,
earnings, and growth rates). The security analyst will ultimately focus on 3 inputs to derive the
value of a stock. These are earnings per share (EPS), a discount rate and a growth rate. The
discount rate is equal to the risk free rate of return
G. Malkiel’s “A Random Walk Down Wall Street
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Industry Profile
A stock market is a public entity a loose network of economic transactions, not a physical
facility or discrete entity for the trading of company stock shares and derivatives at an agreed
price; these are securities listed on a stock exchange as well as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion at the start of October
2008 The total world derivatives market has been estimated at about $791 trillion face or
nominal value11 times the size of the entire world economy The stocks are listed and traded on
stock exchanges which are entities of a corporation specialized in the business of bringing
buyers and sellers of the organizations to a listing of stocks and securities together. The largest
stock market in the united nations by market capitalization, is the new York stock exchange so
In Canada, the largest stock market is Toronto stock exchange, and the Bombay stock exchange
America, participants in the stock market range from small individual stock investors to
large to hedge fund traders , who can be based anywhere. Their orders usually end up with a
professional at a stock exchange, who executes the order of buying or selling.
Some exchanges are physical locations where transactions are carried out on a trading floor, by
a method known as open out cry. This type of auction is used in stock exchanges
and commodity exchange where traders may enter "verbal" bids and offers simultaneously. The
other type of stock exchange is a virtual kind, composed of a network of computers where
trades are made electronically via traders.
Actual trades are based on an auction market model where a potential buyer bids a specific
price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at
market means you will accept any ask price or bid price for the stock, respectively.) When the
bid and ask prices match, a sale takes place, on a first-come-first-served basis if there aremultiple bidders or askers at a given price.
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and
sellers, thus providing market place the exchanges provide real-time trading information on the
listed securities, facilitating price discovery.
One of the many things people always want to know about the stock market is, "How do I make
money investing?" There are many different approaches; two basic methods are classified by
either fundamental analysis or technical analysis companies by their financial statements found
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in filings business trends, general economic conditions, etc.technical analysis studies price
actions in markets through the use of charts and quantitative techniques to attempt to forecast
price trends regardless of the company's financial prospects.
Net worth Stock Broking Limited
Incorporated in 1993, Net worth Stock Broking Limited (NSBL) has been a listed
company at Bombay Stock Exchange (BSE), Mumbai since 1995.A Member, at the National
Stock Exchange of India (NSE) and Bombay Stock Exchange, Mumbai (BSE) on the Capital
Market and Derivatives (Futures & Options) segment, NSBL has been traditionally servicing
Institutional clients and in the recent past has forayed into retail broking, establishing branches
across the country. Presence is being marked in the Middle East, Europe and the United States
too, as part of our attempts to cater to global markets. We are a Depository participant at
Central Depository Services India (CDSL) with plans to become one at National Securities
Depository (NSDL) by the end of this quarter. We have our customers participating in the
booming commodities markets with our membership at the Multi Commodity Exchange of
India (MCX) and National Commodity & Derivatives Exchange (NCDEX), through Networth
Stock.Com Ltd. With its strong support and business units of research, distribution & advisory,
NSBL aims to become a one-stop solution to the broking and investment needs of its clients,
globally.
Strong team of professional’s experienced and qualified pool of human resources drawn
from top financial service & broking houses form the backbone of our sizeable infrastructure.
Highly technology oriented, the company’s scalability of operations and the highest level of
service standards has ensured rapid growth in the number of locations & the clients serviced in
a very short span of time. ‘Networthians’, as each one of our 400 plus and ever growing team
members are addressed, is a dedicated team motivated to continuously progress by imbibing
the best of global practices, Indian sing such practices, and to constantly evolve a
comprehensive suite of products & services trying to meet every financial / investment need of
the clients.
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Products and services portfolio
• Retail and institutional broking
• Research for institutional and retail clients
• Distribution of financial products
• PMS Corporate finance
• Net trading
• Depository services
• Commodities Broking
Market & Research Focusing On Your Needs
Every investor has different needs, different preferences, and different viewpoints.
Whether investors prefer to make own investment decisions or desire more in-depth assistance,
company committed to providing the advice and research to help you succeed.
Net worth providing following services to their customers,
• Market Musing
• Company Reports
• Theme Based Reports
• Weekly Notes
• IPOs
• Sector Reports
• Stock Stance
• Pre-quarter/Updates
• Bullion Tracker
• F&O Tracker
Quality Policy
To achieve and retain leadership, Net worth shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide superior quality
financial services. In the process, Net worth will strive to exceed Customer’s expectations.
As per the quality policy, Net worth will:
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• Build in house processes that will ensure transparent and harmonious relationships with
its clients and investors to provide high quality of services.
• Establish a partner relationship with in its investor service agents and vendors that will
help in keeping up its commitments to the customers.• Provide high quality of work life for all its employees and equip them with adequate
knowledge & skill so as to respond to customer’s needs.
• Continue to uphold the values of honesty & integrity and strive to establish unparalleled
standards in business ethics.
• Use state-of-the art information technology in developing new and innovative financial
products and services to meet the changing needs of investors and clients.
•
Strive to be a reliable source of value-added financial products and servicesand constantly guide the individuals and institutions in making a judicious
choice of it.
• Strive to keep all stake-holders (share holders, clients, investors,
employees, suppliers and regulatory authorities) proud and satisfied.
India Info line:
The India Info line group, comprising the holding company, India info line limited and
its wholly-owned subsidiaries, straddle the entire financial services space with offerings
ranging from equity research, equities and derivatives trading, commodities trading, portfolio
management services, mutual funds, life insurance, fixed deposits, goi bonds and other small
savings instrument to loan products and investment banking. The company has a network of
over 2100 business locations (branches and sub-brokers) spread across more than 450 cities and
towns. The group caters to approximately a million customers.
India Info line Group subsidiaries:
• India Info line Media and Research Services Limited
• India Info line Commodities Limited
• India Info line Marketing & Services
• India Infoline Investment Services Limited
• IIFL (Asia) Pte Limited
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History:
We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider. We gradually evolved into a one-stop
financial services solutions provider. Our strong management team comprises competent and
dedicated professionals.
We are a pan-India financial services organization across 1,361 business locations and
a presence in 428 cities. Our global footprint extends across geographies with offices in New
York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE). We offer a wide range of services and products comprising
broking (retail and institutional equities and commodities), wealth management, credit and
finance, insurance, asset management and investment banking.
We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and
DGCX for commodities trading, CDSL and NSDL as depository participants. We areregistered as a Category I merchant banker and are a SEBI registered portfolio manager. We
also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the
Monetary Authority of Singapore to carry out corporate advisory and dealing in securities
operations. Two subsidiaries – India Infoline Investment Services and Moneyline Credit
Limited – are registered with RBI as non-deposit taking non-banking financial services
companies. India infoline Housing Finance Ltd, the housing finance arm, is registered with the
National Housing Bank.
• In 2004 acquired commodities broking license; launched Portfolio Management
Service.
• In 2005 listed on the Indian stock markets.
• In 2006 acquired membership of DGCX; launched investment banking services.
• In 2007 launched a proprietary trading platform; inducted an institutional equities
team; formed a Singapore subsidiary; raised over USD 300 mn in the group;
launched consumer finance business under the ‘Moneyline’ brand.
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• In 2008 launched wealth management services under the ‘IIFL Wealth’ brand; set
up India Infoline Private Equity fund; received the Insurance broking license from
IRDA; received the venture capital license; received in principle approval to
sponsor a mutual fund; received ‘Best broker- India’ award from Finance Asia;‘Most Improved Brokerage- India’ award from Asia money.
• In 2009 received registration for a housing finance company from the National
Housing Bank; received ‘Fastest growing Equity Broking House - Large firms’ in
India by Dun & Bradstreet.
India Info line Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both
the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments
of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the equities
market. It has recently launched its Investment banking and Institutional Broking business.
A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to
clients. These services are offered to clients as different schemes, which are based ondiffering investment strategies made to reflect the varied risk-return preferences of clients.
India Info line Commodities Limited.
India Info line Commodities Pvt Limited is engaged in the business of commodities
broking. Our experience in securities broking empowered us with the requisite skills and
technologies to allow us offer commodities broking as a contra-cyclical alternative to
equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian
commodities exchanges, and recently acquired membership of DGCX. We have a multi-
channel delivery model, making it among the select few to offer online as well as offline
trading facilities.
India Info line Marketing & Services
India Info line Marketing and Services Limited is the holding company of India Info
line Insurance Services Limited and India Info line Insurance Brokers Limited. (a) India
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Info line Insurance Services Limited is a registered Corporate Agent with the Insurance
Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI
Prudential Life Insurance Co Limited, which is India's largest private Life Insurance
Company. India Info line was the first corporate agent to get licensed by IRDA in early
2001. (b) India Info line Insurance Brokers Limited is a newly formed subsidiary which
will carry out the business of Insurance broking. We have applied to IRDA for the
insurance broking license and the clearance for the same is awaited. Post the grant of
license, we propose to also commence the general insurance distribution business.
India Info line Investment Services Limited:
Consolidated shareholdings of all the subsidiary companies engaged in loans and
financing activities under one subsidiary. Recently, Orient Global, a Singapore-based
investment institution invested USD 76.7 million for a 22.5% stake in India Info line
Investment Services. This will help focused expansion and capital raising in the said
subsidiaries for various lending businesses like loans against securities, SME financing,
distribution of retail loan products, consumer finance business and housing finance
business. India Info line Investment Services Private Limited consists of the following step-
down subsidiaries. (a) India Info line Distribution Company Limited (distribution of retailloan products) (b) Money line Credit Limited (consumer finance) (c) India Info line
Housing Finance Limited (housing finance)
India Bulls:
India bulls are India’s leading Financial, Real Estate and Power Company with a wide
presence throughout India. They ensure convenience and reliability in all their products and
services. India bulls have over 640 branches all over India. The customers of India bulls are
more than 4,50,000 which covers from a wide range of financial services and products from
securities, derivatives trading, depositary services, research & advisory services, consumer
secured & unsecured credit, loan against shares and mortgage & housing finance. The company
employs around 4000 Relationship managers who help the clients to satisfy their customized
financial goals. India bulls entered the Real Estate business in the year 2005 with its group of
companies. Large scale projects worth several hundred million dollars are evaluated by them.
India bulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market capitalization
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of India bulls is around USD 2500 million (29thDecember, 2006). Consolidated net worth of the
group is around USD 700 million. India bulls and its group companies have attracted USD 500
million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the
large shareholders of India bulls are the largest financial institutions of the world such as
Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.
Sector:
Since India bulls derives most of its revenues from the brokerage business, its fortunes
are very much dependent on the Performance of the capital markets, i.e. debt, derivative and
equity markets. The Indian equity markets have grown from strength to strength in the last
decade with combined daily volumes of all segments on the BSE and the NSE touching Rs 432
bn in April 2011, from Rs 215 bn in FY04.
Total shareholders in the country are over 20 m (2% of population) and this is the third
largest after the US and Japan, in absolute terms. However, if one were to compare the
percentage of all households in India that are invested in the stock markets, it is only about
1.9% as compared to an estimated 52%(including indirect ownership by way of mutual funds)
of all households in the US. This highlights the long-term potential for the sector. To apply
The Team:
India bulls Securities Ltd, main strength lies in its formidable team. This team comprising
highly qualified and experienced personnel has been responsible for the overall management of
the company and has provided direction in diverse areas of business strategy, operating
management, regulatory reporting, human resources development and product development.
Vision statement:
To become the preferred long term financial partner to a wide base of customers whilst
optimizing stake holder’s value
Mission statement:
To establish a base of 3 million satisfied customers by 2015. We will create this by
being a responsible and trustworthy partner
Corporate action:
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An Approach to Business that reflects Responsibility, Transparency and Ethical
Behavior. Respect for Employees, Clients & Stakeholder groups
Services:
India bull’s securities provide a wide range of services that include Power India bulls:
An online trading system designed for the high-volume trader. The platform provides enhanced
trade information and executes orders on an integrated software based trading platform.
1) Equities
2) Commodities
3) Wholesale debts
4) Futures and options
5) Depository services
6) Equity research services
7) Post Trade -Custodial,
8) Depository Services
9) Payment Gateway
10) Other back office support
company profile
Way2Wealth
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Way2Wealth is a premier Investment Consultancy Firm that has been launched with the aim
of making investing simpler, more understandable and profitable for the investors.
Way2Wealth brings a wide range of product offerings from Fixed Income Securities, Life
Insurance and Mutual Funds to Equity and Derivatives (on the National Stock Exchange) for
the convenience and benefit of it customers. Way2Wealth has over 40 easily accessible
Investment Outlets spread across 20 major towns and cities in the country
Mission:
Way2Wealth is a premier Investment Consultancy Firm, launched with the mission “to be
the pre-eminent destination for personalized financial solutions helping individuals creates
wealth”.
Philosophy:
We believe that “our knowledge combined with our investors trust and involvement will
lead to the growth of wealth and make it an exciting experience”
Heritage:
Sivan Securities started in 1984, has a long and illustrious track record of being amongst
the premier Financial Intermediaries in the country as well as being an incubator for IT start-up
firms. The Venture Capital division came to be known as Global Technology Ventures (GTV
has provided venture capital to companies such as Keshena Technologies, Mind Tree, Vega
etc.) and the Financial Intermediary Division was spun off as Way2Wealth in the year 2000.
Way2Wealth is promoted by Sivan Securities and Global Technology Ventures Ltd. Over the
years, Sivan has developed a strong reputation for navigating its investors through all the ups
and downs in the Market. Way2Wealth has inherited these same values in addition to a base of
75,000 individual customers, over 300 corporate/institutional clients. Other companies in the
group include Amalgamated Bean Coffee Trading Company Ltd. (one of the largest Coffee
Exporters in India) and Café Coffee Day, a chain of youth hangout coffee parlors. Way2Wealth
has a very credible management team, who has well over 100 man-years of experience amongst
themselves.
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The Way2Wealth Research Desk:
Research is at the core of our advice. We believe that sound investments Decision are made on
sound analysis of facts, past performance and credible Market information. Our research cell
focuses on providing data and analysis.
To help customers make sound investment Decision. The Research cell is managed by a
highly qualified team that is handpicked and trained extensively in the proprietary Way2Wealth
Investment Philosophy centered on finding the best investment solutions for our customers.
Based in the commercial capital enables the team to have a pulse of the trends allowing
dissemination of the most up-to-date and latest information. The Way2Wealth research cell
measures up to international standards of technology and on-site resources.
Investment Outlets:
Way2Wealth Investment outlets are designed to be places where retail investors can come
in touch with Investment opportunities in an atmosphere of convenience and comfort. The look
and feel of the offices across India projects a consistent branch image for the company. The
features that enable a unique facility for retailing financial services include among others:
Easily visible branches set up in the commercial spaces of potential investment zones ranging
between 750sft to 1000sft.Most branches are located in the ground floor sporting huge glass
frontage promoting easy accessibility and reflecting our attitude of complete transparency. The
major portion of the branch area dedicated for customer use. The
furniture is in CKD formats to add flexibility in using the branch for Investors purposes.
Connectivity to NSE for trading facilities:
• Information to our customers.
• Each branch comprises of trained and qualified Investment advisors to take care of the
needs of the customers.
The Way2Wealth Planner – Your Personal Investment Guide:
Every investor has unique needs. So we have created a wide range of services, where you
will always find exactly what you are looking for. Aiding you in this effort is the quintessentialWay2Wealth Investment Planner. These hand-selected planners are made up of professionals
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with the expertise and experience to meet your unique financial needs. These financial planners
reflect our commitment to provide financial advice based solely on your objectives without
traditional conflicts of interest.
The Way2Wealth advantage:
Personalized Investment Solutions: All our customers receive individual attention
Full choice of Investments: Mutual funds, Life Insurance, Fixed Income Instruments, Equity
and Derivatives
Unbiased advice: We do not have any products of our own
Processing support: We take care of all your paper work and provide service at your doorstep.
Investor eligibility criteria: Customers with a minimum investment amount as low as Rs. 2500
per month can avail of our services.
This unique Way2Wealth concept can be easily experienced through the innovative and
customer friendly network of Investment outlets that spans 20 major towns and cities in the
country.
Work environment:
Way2Wealth is a growing organization, which is an ideal place for individuals with high
ambitions. The working atmosphere is highly charged with a young and energetic team of
qualified professionals. The average age of the team is 28. Further it provides an environment
where conventions, protocols do not come in the way of good ideas. Being in the knowledge
industry we associate a high premium to the quality of training..
The holistic Training on investment avenues, sales, presentation skills, which are done periodically to personally enrich each individual Trust and Integrity are the values most sought
out by our customers. In addition, every individual who can also identify with the Way2Wealth
philosophy “Our knowledge
Combined with our customers trust and involvement will lead to the growth of wealth
in an exciting manner” can look forward to a long and illustrious career in the company. At
Way2Wealth, the model investors are our employees themselves. In the process of creating
wealth for our investors, the rewards structure ensures that our employees themselves are also
creating wealth.
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Network:
In Delhi, Mumbai, Hyderabad, Chennai and Bangalore . Additionally the company has a
network of 50 Investment outlets Headquartered in Bangalore, Way2Wealth has five regionaloffices located with the state of the art infrastructure to cater to the needs of retail investors.
These outlets are spread across more than 20 major towns and cities in the country.
About way2wealth logo:
The word “Way” brings focus to the mind. It gives direction. “Wealth” denotes stability,
discipline and long term. Blue symbolizes Knowledge. We are in a Knowledge industry.
Knowledge is limitless, so is the sky and sea, both of which are blue in color. Knowledgeapplied leads to creation of wealth for our Investors. Hence, the color blue for knowledge. Red
symbolizes Trust. Red is the color of blood and the heart. Trust is a matter of the heart. Our
knowledge bears fruit only when the investor places his Trust in us. Yellow symbolizes
Excitement and also the Involvement of the investor. Yellow is a vibrant color, which evokes
feelings of excitement. We strive to make investing an exciting and involving experience for
our investors. Green symbolizes Growth. Growth in Nature is visible in the form of plants and
trees; all of which are green. Knowledge, Trust and Excitement should ultimately lead toGrowth of the investors’ wealth. Hence, the color green has been chosen for Growth.
Introduction
India is a developing country. Nowadays many people are interested to invest in
financialmarkets especially on equities to get high returns, and to save tax in honest way.
Equities are playing a major role in contribution of capital to the business from the beginning.
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Since the introduction of shares concept, large numbers of investors are showing interest to
invest in stock market.
In an industry plagued with skepticism and a stock market increasingly difficult to predict and
contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and
Short Term Investor.
The price of a security represents a consensus. It is the price at which one person agrees to buy
and another agrees to sell. The price at which an investor is willing to buy or sell depends
primarily on his expectations. If he expects the security's price to rise, he will buy it; if the
investor expects the price to fall, he will sell it. These simple statements are the cause of a
major challenge in forecasting security prices, because they refer to human expectations. As we
all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices
are based on investor expectations, then knowing what a security should sell for (i.e.,
fundamental analysis) becomes less important than knowing what other investors expect it to
sell for. That's not to say that knowing what a security should sell for isn't important--it is. But
there is usually a fairly strong consensus of a stock's future earnings that the average investor
cannot disprove
Fundamental analysis and technical analysis can co-exist in peace and complement each other.
Since all the investors in the stock market want to make the maximum profits possible, they
just cannot afford to ignore either fundamental or technical analysis.
Equity Analysis
Equity:
T o start any business capital plays major role. Capital can be acquired in two ways by issuing
shares or by taking debt from financial institutions or borrowing money from financial
institutions. The owners of the company have to pay regular interest and principal amount at
the end.
Stock is ownership in a company, with each share of stock representing a tiny piece of
ownership. The more shares you own, the more of the company you own. The more shares you
own, the more dividends you earn when the company makes a profit. In the financial world,
ownership is called “Equity”.
• A company does not have to make periodic interest payments to creditors.
• A company does not have to make principal payments
Stock/shares play a major role in acquiring capital to the business in return investor’s are paid
dividends to the shares they own. The more shares you own the more dividends you receive.
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The role of equity analysis is to provide information to the market. An efficient market relies
on information: a lack of information creates inefficiencies that result in stocks being
misrepresented (over or under valued). This is valuable because it fills information gaps so that
each individual investor does not need to analyze every stock thereby making the markets more
efficient.
Objectives:
The main objectives of the Project study are:
Analyze the impact of qualitative factors on industries and company’s prospect Equity does not
create any obligation to pay a fixed rate of dividend. Equity can be issued without creating any
charge over the assets of the company. It is a permanent source of capital and the company has
not to repay it except under liquidation. In case of profits, equity shareholders are the real
gainers by way of increased dividends and appreciation in the value of shares. Comparative
analysis of three tough competitors Tcs ltd, Wipro lt., Infosys ltd. through fundamental
analysis. Suggesting as to which company’s shares would be best for an investor to invest.
Assumptions:
• Works only in normal share market conditions with great reliability, it also
works abnormal share market conditions, but with low reliability.
•Equity analysis is purely based on the investor philosophy, so invest objecthas vital importance associated to return along with risk.
• Cash management gets the magnitude role because the scenario of equity
analysis is revolving around the term money.
• Portfolio management, risk management was up to the investor’s
knowledge.
•Capital market trend is always friend whether short term or long term.
• Stock and not company so don’t panic or curious to do post mortem of
companies performance.
• History repast investors and speculators react in the same way to same
types of events homogenously.
• Capital market has a typical market psychology along with the other issues
perceptions, the individual trade and trust.
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• Individual perceptions about the investment return and associated risk may
differ from individual to individual.
• Although equity analysis is an art as well as science so it also has some
exceptions.
Need of Study:
To start any business capital plays major role. Capital can be acquired in two ways by issuing
shares or by taking debt from financial institutions or borrowing money from financial
institutions. The owners of the company have to pay regular interest and principal amount at
the end
The role of equity analysis is to provide information to the market. An efficient market relies
on information: a lack of information creates inefficiencies that result in stocks being
misrepresented (over or under valued). This is valuable because it fills information gaps so that
each individual investor does not need to analyze every stock thereby making the markets more
efficient
Principles
Fundamental Analysis
Fundamental analysis is a method of forecasting the future price movements of financial
instrument based on economic, political, environmental and other relevant factors and statistics
that will affect the basic supply and demand of whatever underlies the financial instrument. It is
the study of economic, industry and company conditions in an effort to determine the value of a
company’s stock. Fundamental analysis typically focuses on key statistics in company’s
financial statements to determine if the stock price is correctly valued. The term simply refers
to the analysis of the economic well-being of a financial entity as opposed to only its price
movements.
Fundamental analysis is the cornerstone of investing. The basic philosophy underlying the
fundamental analysis is that if an investor invests re.1 in buying a share of accompany, how
much expected returns from this investment he has.
The fundamental analysis is to appraise the intrinsic value of a security. It insists that no one
should purchase or sell a share on the basis of tips and rumors. The fundamental approach calls
upon the investors to make his buy or sell decision on the basis of a detailed analysis of the
information about the company, about the industry, and the economy. It is also known as “top-
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down approach”. This approach attempts to study the economic scenario, industry position and
the company expectations and is also known as “Equity Analysis
Economic AnalysisThe level of economic activity has an impact on investment in many ways. If the economy
grows rapidly, the industry can also be expected to show rapid growth and vice versa. When
the level of economic activity is low, stock prices are low, and when the level of economic
activity is high, stock prices are high reflecting the prosperous outlook for sales and profits of
the firms. The analysis of macroeconomic environments essential to understand the behavior of
the stock prices.
The commonly analyzed macro economic factors are as follows:
Gross Domestic Product (GDP): GDP indicates the rate of growth of the economy. It
Represents the aggregate value of the goods and services produced in the economy. It consists
of personal consumption expenditure, gross private domestic investment and government
expenditure on goods and services and net exports of goods and services. The growth rate of
economy points out the prospects for the industrial sector and the return investors can expect
from investment in shares. The higher growth rate is more favorable to the stock market.
Savings and investment: It is obvious that growth requires investment which in turn
requires substantial amount of domestic savings. Stock market is a channel through which the
savings are made available to the corporate bodies. Savings are distributed over various assets
like equity shares, deposits, mutual funds, real estate and bullion. The savings and investment
patterns of the public affect the stock to a great extent
Inflation: Along with the growth of GDP, if the inflation rate also increases, then the
Real growth would be very little. The effects of inflation on capital markets are numerous. An
increase in the expected rate of inflation is expected to cause a nominal rise in interest rates.
Also, it increases uncertainty of future business and investment decisions. As inflation
increases, it results in extra costs to businesses, thereby squeezing their profit margins and
leading to real declines in profitability.
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Interest rates: The interest rate affects the cost of financing to the firms. A decrease in
Interest rate implies lower cost of finance for firms and more profitability. More money is
available at a lower interest rate for the brokers who are doing business with borrowed money.Availability of cheap funds encourages speculation and rise in the price of shares.
Tax structure: Every year in March, the business community eagerly awaits the
Government’s announcement regarding the tax policy. Concessions and incentives given to a
certain industry encourage investment in that particular industry. Tax relief’s given to savings
encourage savings. The type of tax exemption has impact on the profitability of the industries.
Industry Analysis
An industry is a group of firms that have similar technological structure of production and
produce similar products and Industry analysis is a type of business research that focuses on the
status of an industry or an industrial sector (a broad industry classification, like
"manufacturing"). Irrespective of specific economic situations, some industries might be
expected to perform better, and share prices in these industries may not decline as much as in
other industries. This identification of economic and industry specific factors influencing share prices will help investors to identify the shares that fit individual expectations.
Industry Life Cycle: The industry life cycle theory is generally attributed to Julius
Grodensky. The life cycle of the industry is separated into four well defined stages.
Pioneering stage: The prospective demand for the product is promising in this
Stage and the technology of the product is low. The demand for the product attracts many
producers to produce the particular product. There would be severe competition and only fittestcompanies survive this stage. The producers try to develop brand name, differentiate the
product and create a product image. In this situation, it is difficult to select companies for
investment because the survival rate is unknown.
Rapid growth stage: This stage starts with the appearance of surviving firms from the
pioneering stage. The companies that have withstood the competition grow strongly in market
share and financial performance. The technology of the production would have improved
resulting in low cost of production and good quality products. The companies have stable
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growth rate in this stage and they declare dividend to the shareholders. It is advisable to invest
in the shares of these companies.
Maturity and stabilization stage: the growth rate tends to moderate and the rate
Of growth would be more or less equal to the industrial growth rate or the gross domestic
product growth rate. Symptoms of obsolescence may appear in the technology. To keep going,
technological innovations in the production process and products should be introduced. The
investors have to closely monitor the events that take place in the maturity stage of the industry.
Decline stage: demand for the particular product and the earnings of the
Companies in the industry decline. It is better to avoid investing in the shares of the low growth
industry even in the boom period. Investment in the shares of these types of companies leads to
erosion of capital.
Growth of the industry: The historical performance of the industry in terms of growth
And profitability should be analyzed. The past variability in return and growth in
Reaction to macro economic factors provide an insight into the future
Nature of competition: Nature of competition is an essential factor that determines the
Demand for the particular product, its profitability and the price of the concerned company
scrip’s. The companies' ability to withstand the local as well as the multinational competition
counts much. If too many firms are present in the organized sector, the competition would be
severe. The competition would lead to a decline in the price of the product. The investor before
investing in the scrip of a company should analyze the market share of the particular company's
product and should compare it with the top five companies.
SWOT analysis: SWOT analysis represents the strength, weakness, opportunity and
Threat for an industry. Every investor should carry out a SWOT analysis for the chosen
industry. Take for instance, increase in demand for the industry’s product becomes its strength,
presence of numerous players in the market, i.e. competition becomes the threat to a particular
company. The progress in R & D in that industry is an opportunity and entry of multinationals
in the industry is a threat. In this way the factors are to be arranged and analyzed.
Company Analysis
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In the company analysis the investor assimilates the several bits of information related to the
company and evaluates the present and future values of the stock. The risk and return
associated with the purchase of the stock is analyzed to take better investment decisions. The
present and future values are affected by a number of factors.
Competitive edge of the company: Major industries in India are composed of
Hundreds of individual companies. Though the number of companies is large, only few
companies control the major market share. The competitiveness of the company can be studied
with the help of the following.
Market share: The market share of the annual sales helps to determine a
Company’s relative competitive position within the industry. If the market shares high, the
company would be able to meet the competition successfully. The companies in the market
should be compared with like product groups otherwise, the results will be misleading.
Growth of sales: The rapid growth in sales would keep the shareholder in a
Better position than one with stagnant growth rate. Investors generally prefer size and growth
in sales because the larger size companies may be able to withstand the business cycle rather
than the company of smaller size.
Stability of sales: If a firm has stable sales revenue, it will have more stable
Earnings The fall in the market share indicates the declining trend of company,
Equity Analysis even if the sales are stable. Hence the stability of sales should be compared
with its market share and the competitor’s market share.
Earnings of the company: Sales alone do not increase the earnings but the costs and expenses
of the company also influence the earnings. Further, earnings do not always increase with
increase in sales. The company’s sales might have increased but its earnings per share may
decline due to rise in costs. Hence, the investor should not only depend on the sales, but should
analyze the earnings of the company.
Financial analysis: The best source of financial information about a company is its
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Own financial statements. This is a primary source of information for evaluating the investment
prospects in the particular company’s stock. Financial statement analysis is the study of a
company’s financial statement from various viewpoints. The statement gives the historical and
current information about the company’s operations. Historical financial statement helps to
predict the future and the current information aids to analyze the present status of the company.
The two main statements used in the analysis are Balance sheet and Profit and Loss Account.
The balance sheet is one of the financial statements that companies prepare every year for their
shareholders. It is like a financial snapshot, the company's financial situation at a moment in
time. It is prepared at the year end, listing the company's current assets and liabilities. It helps
to study the capital structure of the company. It is better for the investor to avoid a company
with excessive debt component in its capital structure.
Tools
Return, Variance and Standard Deviation
InfosysFor (NOV -2010)
TABLE – 1
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN
(X)(X)X-AVGX-AVG ((X-AVG)^2X-AVG)^2
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29-Oct-1029-Oct-10 1052.861052.86
11 1-Nov-111-Nov-11 1053.41053.4 -0.05126-0.05126 0.0888650.088865 0.0078970.007897
22 2-Nov-112-Nov-11 1049.451049.45 0.3763880.376388 -0.33879-0.33879 0.1147750.114775
33 3-Nov-113-Nov-11 1052.81052.8 -0.3182-0.3182 0.3558020.355802 0.1265950.126595
44 4-Nov-114-Nov-11 1069.151069.15 -1.52925-1.52925 1.5668551.566855 2.4550342.455034
55 5-Nov-115-Nov-11 1077.751077.75 -0.79796-0.79796 0.8355610.835561 0.6981630.69816366 8-Nov-118-Nov-11 1068.151068.15 0.898750.89875 -0.86115-0.86115 0.7415750.741575
77 9-Nov-119-Nov-11 1091.11091.1 -2.10338-2.10338 2.1409852.140985 4.5838154.583815
88 10-Nov-1110-Nov-11 1092.31092.3 2.5874622.587462 -2.54986-2.54986 6.5017826.501782
99 11-Nov-1111-Nov-11 1064.751064.75 2.5874622.587462 -2.54986-2.54986 6.5017826.501782
1010 12-Nov-1112-Nov-11 1055.91055.9 0.8381480.838148 -0.80054-0.80054 0.6408720.640872
1111 15-Nov-1115-Nov-11 10661066 -0.94747-0.94747 0.985070.98507 0.9703620.970362
1212 16-Nov-1116-Nov-11 1048.91048.9 1.6302791.630279 -1.59268-1.59268 2.5366192.536619
1313 18-Nov-1118-Nov-11 1042.81042.8 0.5849640.584964 -0.54736-0.54736 0.2996040.299604
1414 19-Nov-1119-Nov-11 1015.41015.4 2.6984442.698444 -2.66084-2.66084 7.0800777.080077
1515 22-Nov-1122-Nov-11 1039.11039.1 -2.28082-2.28082 2.3184232.318423 5.3750835.3750831616 23-Nov-1123-Nov-11 1030.051030.05 0.8785980.878598 -0.841-0.841 0.7072730.707273
1717 24-Nov-1124-Nov-11 1004.751004.75 2.5180392.518039 -2.48044-2.48044 6.1525666.152566
1818 25-Nov-1125-Nov-11 1021.81021.8 -1.66862-1.66862 1.7062271.706227 2.9112092.911209
1919 26-Nov-1126-Nov-11 1047.251047.25 -2.43017-2.43017 2.4677772.467777 6.0899236.089923
2020 29-Nov-1129-Nov-11 1071.31071.3 -2.24494-2.24494 2.2825392.282539 5.2099835.209983
2121 30-Nov-1130-Nov-11 10761076 -0.4368-0.4368 0.4744060.474406 0.2250610.225061
AVGAVG 0.0376030.037603 VARIANCEVARIANCE 2.8538122.853812
SDSD 1.68931.6893Source: national stock exchange, historical data, security wise data
Return, Variance And Standard DeviationFor (DEC- 2010)
TABLE – 2
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Dec-111-Dec-11 3052.43052.4 -0.04587-0.04587 -0.52163-0.52163 0.2721020.272102
22 2-Dec-112-Dec-11 3098.53098.5 -1.48782-1.48782 0.9203170.920317 0.8469840.846984
33 3-Dec-113-Dec-11 31253125 -0.848-0.848 0.2805010.280501 0.0786810.078681
44 6-Dec-116-Dec-11 3143.43143.4 -1.10741-1.10741 0.5399060.539906 0.2914990.29149955 7-Dec-117-Dec-11 3178.63178.6 -1.10741-1.10741 0.5399060.539906 0.2914990.291499
66 8-Dec-118-Dec-11 3131.153131.15 1.5154181.515418 -2.08292-2.08292 4.3385434.338543
77 9-Dec-119-Dec-11 3151.453151.45 -0.64415-0.64415 0.0766490.076649 0.0058750.005875
88 10-Dec-1110-Dec-11 3144.253144.25 0.2289890.228989 -0.79649-0.79649 0.6343940.634394
99 13-Dec-1113-Dec-11 3145.33145.3 -0.03338-0.03338 -0.53412-0.53412 0.285280.28528
1010 14-Dec-1114-Dec-11 3158.653158.65 -0.42265-0.42265 -0.14485-0.14485 0.0209820.020982
1111 15-Dec-1115-Dec-11 3203.453203.45 -1.39849-1.39849 0.8309930.830993 0.6905490.690549
1212 16-Dec-1116-Dec-11 3293.33293.3 -2.72827-2.72827 -13.5675-13.5675 184.077184.077
1313 20-Dec-1120-Dec-11 3349.953349.95 -1.69107-1.69107 1.1235711.123571 1.2624111.262411
1414 21-Dec-1121-Dec-11 3329.253329.25 0.6217620.621762 -1.18926-1.18926 1.4143421.4143421515 22-Dec-1122-Dec-11 3332.53332.5 -0.09752-0.09752 -0.46998-0.46998 0.2208770.220877
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1616 23-Dec-1123-Dec-11 3367.93367.9 -1.0511-1.0511 0.4836010.483601 0.233870.23387
1717 24-Dec-1124-Dec-11 3370.153370.15 -0.06676-0.06676 -0.50074-0.50074 0.2507370.250737
1818 27-Dec-1127-Dec-11 3376.93376.9 -0.19989-0.19989 -0.36761-0.36761 0.1351390.135139
1919 28-Dec-1128-Dec-11 3382.653382.65 -0.16999-0.16999 -0.39751-0.39751 0.1580180.158018
2020 29-Dec-1129-Dec-11 3404.93404.9 -0.65347-0.65347 0.0859710.085971 0.0073910.007391
2121 30-Dec-1130-Dec-11 3446.953446.95 -1.21992-1.21992 0.652420.65242 0.4256510.4256512222 31-Dec-1131-Dec-11 3442.753442.75 0.1219950.121995 -0.68949-0.68949 0.4754030.475403
AVGAVG -0.5675-0.5675 VARIANCEVARIANCE 8.9280588.928058
SDSD 2.98792.9879
Source: National Stock Exchange, Historical Data, Security Wise Data.
Return, Variance and Standard Deviation
For (JAN-2011)
TABLE-3
SNOSNO DATEDATE CLOSECLOSE RETUENRETUEN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 3-Jan-113-Jan-11 1158.051158.05 0.656270.65627 -0.61062-0.61062 0.3728540.372854
22 4-Jan-114-Jan-11 1144.751144.75 1.1618261.161826 -1.11617-1.11617 1.2458431.245843
33 5-Jan-115-Jan-11 1158.951158.95 -1.22525-1.22525 1.2708991.270899 1.6151851.615185
44 6-Jan-116-Jan-11 1171.71171.7 -1.08816-1.08816 1.1338151.133815 1.2855361.285536
55 7-Jan-117-Jan-11 1142.651142.65 2.5423362.542336 -2.49668-2.49668 6.2334296.233429
66 10-Jan-1110-Jan-11 1130.91130.9 1.0389951.038995 -0.99334-0.99334 0.9867310.98673177 11-Jan-1111-Jan-11 1098.51098.5 2.9494772.949477 -2.90382-2.90382 8.4321968.432196
88 12-Jan-1112-Jan-11 1135.951135.95 -3.2968-3.2968 3.3424523.342452 11.1719911.17199
99 13-Jan-1113-Jan-11 1124.251124.25 1.0406941.040694 -0.99504-0.99504 0.9901080.990108
1010 14-Jan-1114-Jan-11 1120.151120.15 0.3660220.366022 -0.32037-0.32037 0.1026370.102637
1111 17-Jan-1117-Jan-11 1137.41137.4 -1.51662-1.51662 1.5622691.562269 2.4406852.440685
1212 18-Jan-1118-Jan-11 1202.551202.55 -5.41765-5.41765 5.4633065.463306 29.8477229.84772
1313 19-Jan-1119-Jan-11 11931193 0.8005030.800503 -0.75485-0.75485 0.56980.5698
1414 20-Jan-1120-Jan-11 1212.21212.2 -1.5839-1.5839 1.6295491.629549 2.6554312.655431
1515 21-Jan-1121-Jan-11 1211.651211.65 0.0453930.045393 0.000260.00026 6.74E-086.74E-08
1616
24-Jan-1124-Jan-11
1209.251209.25
0.198470.19847
-0.15282-0.15282
0.0233530.023353
1717 25-Jan1125-Jan11 1188.551188.55 1.7416181.741618 -1.69597-1.69597 2.87632.8763
1818 27-Jan-1127-Jan-11 1199.41199.4 -0.90462-0.90462 0.9502710.950271 0.9030150.903015
1919 28-Jan-1128-Jan-11 1181.351181.35 1.5279131.527913 -1.48226-1.48226 2.1970972.197097
2020 31-Jan-1131-Jan-11 1159.591159.59 1.8765251.876525 -1.83087-1.83087 3.3520963.352096
AVGAVG 0.0456520.045652 VARIANCEVARIANCE 3.86513.8651
SDSD 1.96591.9659
Source: National Stock Exchange, Historical Data, Security Wise Data.
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Return, Variance and Standard DeviationFor (FEB-2011)
Table No-4
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Feb-111-Feb-11 3089.23089.2 2.864812.86481 -2.56142-2.56142 6.5608896.560889
22 2-Feb-112-Feb-11 3089.253089.25 -0.00162-0.00162 0.3050050.305005 0.0930280.093028
33 3-Feb-113-Feb-11 3117.63117.6 -0.90935-0.90935 1.212741.21274 1.4707391.470739
44 4-Feb-114-Feb-11 3047.93047.9 2.286822.28682 -1.98343-1.98343 3.9340093.934009
55 7-Feb-117-Feb-11 3087.453087.45 -1.28099-1.28099 1.5843791.584379 2.5102572.510257
66 8-Feb-118-Feb-11 30963096 -0.27616-0.27616 0.579550.57955 0.3358780.335878
77 9-Feb-119-Feb-11 3130.73130.7 -1.10838-1.10838 1.4117651.411765 1.9930811.993081
88 10-Feb-1110-Feb-11 3053.23053.2 2.538322.53832 -2.23493-2.23493 4.9949294.994929
99 11-Feb-1111-Feb-11 3040.853040.85 0.4061360.406136 -0.10275-0.10275 0.0105570.010557
1010 14-Feb-1114-Feb-11 3104.553104.55 -2.05183-2.05183 2.3552142.355214 5.5470335.547033
1111 15-Feb-1115-Feb-11 3106.553106.55 -0.06438-0.06438 0.3677670.367767 0.1352520.135252
1212 16-Feb-1116-Feb-11 3103.033103.03 0.1134380.113438 0.1899490.189949 0.0360810.036081
1313 17-Feb-1117-Feb-11 3113.353113.35 -0.33148-0.33148 0.6348630.634863 0.403050.40305
1414 18-Feb-1118-Feb-11 3100.33100.3 0.4209270.420927 -0.11754-0.11754 0.0138160.013816
1515 21-Feb-1121-Feb-11 3165.253165.25 -2.05197-2.05197 2.3553572.355357 5.5477085.547708
1616 22-Feb-1122-Feb-11 3141.853141.85 0.7447840.744784 -0.4414-0.4414 0.1948320.194832
1717 23-Feb-1123-Feb-11 3078.83078.8 2.0478762.047876 -1.74449-1.74449 3.0432423.043242
1818 24-Feb-1124-Feb-11 3003.83003.8 2.4968372.496837 -2.19345-2.19345 4.8112254.811225
1919 25-Feb-1125-Feb-11 3007.33007.3 -0.11638-0.11638 0.419770.41977 0.1762070.176207
2020 28-Feb-1128-Feb-11 2997.12997.1 0.3403290.340329 -0.03694-0.03694 0.0013650.001365AVGAVG 0.3033870.303387 VARIANCEVARIANCE 2.0906592.090659
SDSD 1.44591.4459
Source: National Stock Exchange, Historical Data, Security wise data
Return, Variance and Standard DeviationFOR (MAR-2011)
TABLE NO-5
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Mar-111-Mar-11 3082.43082.4 -2.76732-2.76732 2.4102252.410225 5.8091845.809184
22 3-Mar-113-Mar-11 3026.13026.1 1.860481.86048 -2.21758-2.21758 4.9176414.917641
33 4-Mar-114-Mar-11 3062.23062.2 -1.17889-1.17889 0.8217960.821796 0.6753490.675349
44 8-Mar-118-Mar-11 3116.33116.3 -1.73603-1.73603 1.3789381.378938 1.901471.90147
55 9-Mar-119-Mar-11 3095.53095.5 0.6719430.671943 -1.02904-1.02904 1.058921.05892
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66 10-Mar-1110-Mar-11 3090.253090.25 0.1698890.169889 -0.52698-0.52698 0.2777120.277712
77 11-Mar-1111-Mar-11 3053.93053.9 1.1902811.190281 -1.54738-1.54738 2.3943742.394374
88 14-Mar-1114-Mar-11 3100.83100.8 -1.51251-1.51251 1.1554181.155418 1.334991.33499
99 15-Mar-1115-Mar-11 3030.153030.15 2.3315682.331568 -2.68866-2.68866 7.2289087.228908
1010 16-Mar-1116-Mar-11 3030.93030.9 -0.02475-0.02475 -0.33235-0.33235 0.1104560.110456
1111 17-Mar-1117-Mar-11 2978.92978.9 1.7456111.745611 -2.10271-2.10271 4.4213724.4213721212 18-Mar-1118-Mar-11 2941.12941.1 1.2852331.285233 -1.64233-1.64233 2.6972432.697243
1313 21-Mar-1121-Mar-11 2922.32922.3 0.6433290.643329 -1.00042-1.00042 1.0008481.000848
1414 22-Mar-1122-Mar-11 2943.052943.05 -0.70505-0.70505 -0.70505-0.70505 0.4970970.497097
1515 23-Mar-1123-Mar-11 2993.352993.35 -1.68039-1.68039 -1.68039-1.68039 2.8237162.823716
1616 24-Mar-1124-Mar-11 3002.83002.8 -0.31471-0.31471 -0.31471-0.31471 0.099040.09904
1717 25-Mar-1125-Mar-11 3163.053163.05 -5.06631-5.06631 -5.06631-5.06631 25.6675225.66752
1818 28-Mar-1128-Mar-11 3139.553139.55 0.7485150.748515 0.7485150.748515 0.5602750.560275
1919 29-Mar-1129-Mar-11 3173.353173.35 -1.06512-1.06512 -1.06512-1.06512 1.1344821.134482
2020 30-Mar-1130-Mar-11 3170.93170.9 0.0772050.077205 0.0772650.077265 0.005970.00597
2121 31-Mar-1131-Mar-11 3241.33241.3 -2.17197-2.17197 -2.17197-2.17197 4.7174454.717445AVGAVG -0.3571-0.3571 VARIANCEVARIANCE 3.301623.30162
SDSD 1.8168651.816865
Source: National Stock Exchange, Historical Data, Security Wise Data.
Return, Variance and Standard Deviation
For (APRIL-2011)
Table No-6
SN0SN0 DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Apr -111-Apr-11 3218.153218.15 0.7193570.719357 -0.08637665-0.08637665 0.0074610.007461
22 4-Apr-114-Apr-11 3283.153283.15 -1.97981-1.97981 2.6127863332.612786333 6.8266526.826652
33 5-Apr-115-Apr-11 3283.253283.25 -0.00305-0.00305 0.6360261170.636026117 0.4045290.40452944 6-Apr-116-Apr-11 3275.153275.15 0.2473170.247317 0.3856634380.385663438 0.1487360.148736
55 7-Apr-117-Apr-11 3245.93245.9 0.9011370.901137 -0.26815646-0.26815646 0.0719080.071908
66 8-Apr-118-Apr-11 3227.33227.3 0.5763330.576333 0.0566471970.056647197 0.0032090.003209
77 11-Apr-1111-Apr-11 3241.63241.6 -0.44114-0.44114 1.0741205321.074120532 1.1537351.153735
88 13-Apr-1113-Apr-11 3306.23306.2 -1.9539-1.9539 2.5868851392.586885139 6.6919756.691975
99 15-Apr-1115-Apr-11 3289.53289.5 -0.50768-0.50768 1.1406562931.140656293 1.3010971.301097
1010 18-Apr-1118-Apr-11 2906.12906.1 13.1929413.19294 -12.5599586-12.5599586 157.7526157.7526
1111 19-Apr-1119-Apr-11 2887.352887.35 0.6493840.649384 -0.01640403-0.01640403 0.0002690.000269
1212 20-Apr-1120-Apr-11 2907.32907.3 -0.6862-0.6862 1.3191840491.319184049 1.7402471.740247
1313 21-Apr-1121-Apr-11 29102910 -0.09278-0.09278 0.725763860.72576386 0.5267330.5267331414 25-Apr-1125-Apr-11 2941.32941.3 -1.06416-1.06416 1.697135661.69713566 2.8802692.880269
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1515 26-Apr-1126-Apr-11 2942.352942.35 -0.03569-0.03569 0.6686661160.668666116 0.4471140.447114
1616 28-Apr-1128-Apr-11 2929.152929.15 0.4506430.450643 0.1823376770.182337677 0.0332470.033247
1717 29-Apr-1129-Apr-11 2906.252906.25 0.7879570.787957 -0.15497663-0.15497663 0.0240180.024018
AVGAVG 0.632980.63298 VAIRANCEVAIRANCE 10.5890410.58904
SDSD 3.254083.25408
Source: National Stock Exchange, Historical Data, Security Wise Data.
Monthly Average Return, Variance and Standard Deviation
(NOV2010-APRIL2011)
Table No-7
MONTHMONTH RETURNRETURN VARIANCEVARIANCE SDSD
NOV NOV -0.1-0.1 1.81.8 1.31.3
DECDEC -0.5-0.5 8.98.9 2.92.9
JANJAN 0.40.4 3.63.6 1.91.9FEBFEB 0.30.3 22 1.41.4
MAR MAR -0.3-0.3 3.33.3 1.81.8
APR APR 0.60.6 10.510.5 3.23.2
RETURN (X)
MONTHLY RETURNS
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Interpretation: During Nov2010- April 2011 return on Infosys stock varies between -01 to 0.6, and the risk for
the same period varies between 1.8 to 10.5. Lowest volatility was found in the month
December 2010, where the return is lowest in the study period and the risk is very high. The
reasons for this may be the investor’s expectation towards the financial performance of the
company. Investors may be expecting lesser profits.
Variance
Variance
Interpretation:
During NOV 2010-APRIL 2011 variance on Infosys stock varies between 1.8 to 10.5, and the
risk for the same period varies between return -0.1 –0.6, the Highest volatility was found in the
month of April -2011, the reasons for this may be the investor’s expectation towards the
financial performance of the company. Investor 'may be expecting lesser profits.
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Standard Deviation
Standard Deviation
Interpretation:
During NOV 2010- APRIL 2011 Standard Deviation on Infosys stock varies between 1.3
to 3.2 and the risk for same period varies between 1.8 to 10.5. the highest volatility was found
in month of April 2011, where the return is lowest in the study period and the risk is very high.
The reasons for this may be the investor’s expectations towards the financial performance of
the company.
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Return, Variance and Standard Deviation
Tcs LtdFor (N0V -2010)
Table no -8
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
29-Oct-1029-Oct-10 1052.861052.86
11 1-Nov-101-Nov-10 1053.41053.4 -0.05126-0.05126 0.0888650.088865 0.0078970.007897
22 2-Nov-102-Nov-10 1049.451049.45 0.3763880.376388 -0.33879-0.33879 0.1147750.114775
33 3-Nov-103-Nov-10 1052.81052.8 -0.3182-0.3182 0.3558020.355802 0.1265950.126595
44 4-Nov-104-Nov-10 1069.151069.15 -1.52925-1.52925 1.5668551.566855 2.4550342.455034
55 5-Nov-105-Nov-10 1077.751077.75 -0.79796-0.79796 0.8355610.835561 0.6981630.698163
66 8-Nov-108-Nov-10 1068.151068.15 0.898750.89875 -0.86115-0.86115 0.7415750.741575
77 9-Nov-109-Nov-10 1091.11091.1 -2.10338-2.10338 2.1409852.140985 4.5838154.583815
88 10-Nov-1010-Nov-10 1092.31092.3 2.5874622.587462 -2.54986-2.54986 6.5017826.50178299 11-Nov-1011-Nov-10 1064.751064.75 2.5874622.587462 -2.54986-2.54986 6.5017826.501782
1010 12-Nov-1012-Nov-10 1055.91055.9 0.8381480.838148 -0.80054-0.80054 0.6408720.640872
1111 15-Nov-1015-Nov-10 10661066 -0.94747-0.94747 0.985070.98507 0.9703620.970362
1212 16-Nov-1016-Nov-10 1048.91048.9 1.6302791.630279 -1.59268-1.59268 2.5366192.536619
1313 18-Nov-1018-Nov-10 1042.81042.8 0.5849640.584964 -0.54736-0.54736 0.2996040.299604
1414 19-Nov-1019-Nov-10 1015.41015.4 2.6984442.698444 -2.66084-2.66084 7.0800777.080077
1515 22-Nov-1022-Nov-10 1039.11039.1 -2.28082-2.28082 2.3184232.318423 5.3750835.375083
1616 23-Nov-1023-Nov-10 1030.051030.05 0.8785980.878598 -0.841-0.841 0.7072730.707273
1717 24-Nov-1024-Nov-10 1004.751004.75 2.5180392.518039 -2.48044-2.48044 6.1525666.152566
1818 25-Nov-1025-Nov-10 1021.81021.8 -1.66862-1.66862 1.7062271.706227 2.9112092.9112091919 26-Nov-1026-Nov-10 1047.251047.25 -2.43017-2.43017 2.4677772.467777 6.0899236.089923
2020 29-Nov-1029-Nov-10 1071.31071.3 -2.24494-2.24494 2.2825392.282539 5.2099835.209983
2121 30-Nov-1030-Nov-10 10761076 -0.4368-0.4368 0.4744060.474406 0.2250610.225061
AVGAVG 0.0376030.037603 VARIANCEVARIANCE 2.8538122.853812
SDSD 1.68931.6893
Source: National Stock Exchange, Historical Data, Security Wise Data.
Return, Variance and Standard Deviation
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For (DEC-2010)
Table No-9
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Dec-101-Dec-10 1081.91081.9 -0.54533-0.54533 0.935670.93567 0.8754790.87547922 2-Dec-102-Dec-10 1095.81095.8 -1.26848-1.26848 0.911420.91142 0.8306870.830687
33 3-Dec-103-Dec-10 1099.351099.35 -0.32292-0.32292 -0.03414-0.03414 0.0011660.001166
44 6-Dec-106-Dec-10 1101.71101.7 -0.21331-0.21331 -0.14375-0.14375 0.0206650.020665
55 7-Dec-107-Dec-10 1087.51087.5 1.3057471.305747 -1.66281-1.66281 2.7649252.764925
66 8-Dec-108-Dec-10 1079.151079.15 0.7737570.773757 -1.13082-1.13082 1.2787461.278746
77 9-Dec-109-Dec-10 1072.61072.6 0.6106660.610666 -0.96772-0.96772 0.9364920.936492
88 10-Dec-1010-Dec-10 1074.91074.9 -0.21397-0.21397 -0.14309-0.14309 0.0204740.020474
99 13-Dec-1013-Dec-10 1076.11076.1 -0.11151-0.11151 -0.24555-0.24555 0.0602930.060293
1010 14-Dec-1014-Dec-10 1080.951080.95 -0.44868-0.44868 0.091620.09162 0.0083940.008394
1111 15-Dec-1015-Dec-10 1103.651103.65 -2.05681-2.05681 1.6997521.699752 2.8891582.8891581212 16-Dec-1016-Dec-10 1140.71140.7 -3.24801-3.24801 2.8909462.890946 8.3575718.357571
1313 20-Dec-1020-Dec-10 1166.71166.7 -2.22851-2.22851 1.8714481.871448 3.5023193.502319
1414 21-Dec-1021-Dec-10 1160.81160.8 0.508270.50827 -0.86533-0.86533 0.7487950.748795
1515 22-Dec-1022-Dec-10 1149.751149.75 0.9610780.961078 -1.31814-1.31814 1.7374871.737487
1616 23-Dec-1023-Dec-10 11401140 0.8552630.855263 -1.21232-1.21232 1.4697261.469726
1717 24-Dec-1024-Dec-10 1141.11141.1 -0.0964-0.0964 -0.26066-0.26066 0.0679440.067944
1818 27-Dec-1027-Dec-10 1141.21141.2 -0.00876-0.00876 -0.3483-0.3483 0.1213110.121311
1919 28-Dec-1028-Dec-10 1146.351146.35 -0.44925-0.44925 0.0921930.092193 0.0084990.008499
2020 29-Dec-1029-Dec-10 1156.951156.95 -0.9162-0.9162 0.5591430.559143 0.3126410.312641
2121 30-Dec-1030-Dec-10 1170.21170.2 -1.13229-1.13229 0.7752260.775226 0.6009750.600975
2222 31-Dec-1031-Dec-10 1165.651165.65 0.390340.39034 -0.7474-0.7474 0.5586060.558606
AVGAVG -0.35706-0.35706 VARIANCEVARIANCE 1.2351071.235107
SDSD 1.11131.1113
Return, Variance and Standard Deviation
For (JAN-2011)
Table No -10
SNOSNO DATEDATE CLOSECLOSE RETUENRETUEN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 3-Jan-113-Jan-11 1158.051158.05 0.656270.65627 -0.61062-0.61062 0.3728540.372854
22 4-Jan-114-Jan-11 1144.751144.75 1.1618261.161826 -1.11617-1.11617 1.2458431.245843
33 5-Jan-115-Jan-11 1158.951158.95 -1.22525-1.22525 1.2708991.270899 1.6151851.615185
44 6-Jan-116-Jan-11 1171.71171.7 -1.08816-1.08816 1.1338151.133815 1.2855361.285536
55 7-Jan-117-Jan-11 1142.651142.65 2.5423362.542336 -2.49668-2.49668 6.2334296.233429
66 10-Jan-1110-Jan-11 1130.91130.9 1.0389951.038995 -0.99334-0.99334 0.9867310.98673177 11-Jan-1111-Jan-11 1098.51098.5 2.9494772.949477 -2.90382-2.90382 8.4321968.432196
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88 12-Jan-1112-Jan-11 1135.951135.95 -3.2968-3.2968 3.3424523.342452 11.1719911.17199
99 13-Jan-1113-Jan-11 1124.251124.25 1.0406941.040694 -0.99504-0.99504 0.9901080.990108
1010 14-Jan-1114-Jan-11 1120.151120.15 0.3660220.366022 -0.32037-0.32037 0.1026370.102637
1111 17-Jan-1117-Jan-11 1137.41137.4 -1.51662-1.51662 1.5622691.562269 2.4406852.440685
1212 18-Jan-1118-Jan-11 1202.551202.55 -5.41765-5.41765 5.4633065.463306 29.8477229.84772
1313 19-Jan-1119-Jan-11 11931193 0.8005030.800503 -0.75485-0.75485 0.56980.56981414 20-Jan-1120-Jan-11 1212.21212.2 -1.5839-1.5839 1.6295491.629549 2.6554312.655431
1515 21-Jan-1121-Jan-11 1211.651211.65 0.0453930.045393 0.000260.00026 6.74E-086.74E-08
1616 24-Jan-1124-Jan-11 1209.251209.25 0.198470.19847 -0.15282-0.15282 0.0233530.023353
1717 25-Jan-1125-Jan-11 1188.551188.55 1.7416181.741618 -1.69597-1.69597 2.87632.8763
1818 27-Jan-1127-Jan-11 1199.41199.4 -0.90462-0.90462 0.9502710.950271 0.9030150.903015
1919 28-Jan-1128-Jan-11 1181.351181.35 1.5279131.527913 -1.48226-1.48226 2.1970972.197097
2020 31-Jan-1131-Jan-11 1159.591159.59 1.8765251.876525 -1.83087-1.83087 3.3520963.352096
AVGAVG 0.0456520.045652 VARIANCEVARIANCE 3.86513.8651
SDSD 1.96591.9659
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard Deviation
For (FEB-11)
Table No-11
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Feb-111-Feb-11 1150.151150.15 0.820760.82076 -0.58867-0.58867 0.346530.34653
22 2-Feb-112-Feb-11 1182.451182.45 -2.73162-2.73162 2.9637092.963709 8.783578.78357
33 3-Feb-113-Feb-11 1183.71183.7 -0.1056-0.1056 0.3376930.337693 0.1140370.114037
44 4-Feb-114-Feb-11 1148.81148.8 3.0379533.037953 -2.80586-2.80586 7.8728527.872852
55 7-Feb-117-Feb-11 1131.151131.15 1.5603591.560359 -1.32827-1.32827 1.7642921.764292
66 8-Feb-118-Feb-11 1125.11125.1 0.537730.53773 -0.30564-0.30564 0.0934140.093414
77 9-Feb-119-Feb-11 1098.31098.3 2.4401352.440135 -2.20804-2.20804 4.8754514.87545188 10-Feb-1110-Feb-11 1090.751090.75 0.6921840.692184 -0.46009-0.46009 0.2116850.211685
99 11-Feb-1111-Feb-11 1089.61089.6 0.1055430.105543 0.1265490.126549 0.0160150.016015
1010 14-Feb-1114-Feb-11 1112.31112.3 -2.04082-2.04082 2.2729092.272909 5.1661145.166114
1111 15-Feb-1115-Feb-11 1097.71097.7 1.3300541.330054 -1.09796-1.09796 1.2055191.205519
1212 16-Feb-1116-Feb-11 1096.51096.5 0.1094390.109439 0.1226530.122653 0.0150440.015044
1313 17-Feb-1117-Feb-11 1109.21109.2 -1.14497-1.14497 1.3770621.377062 1.8962991.896299
1414 18-Feb-1118-Feb-11 1089.71089.7 1.7894831.789483 -1.55739-1.55739 2.4254672.425467
1515 21-Feb-1121-Feb-11 1138.61138.6 -4.29475-4.29475 4.526844.52684 20.4922820.49228
1616 22-Feb-1122-Feb-11 1138.751138.75 -0.01317-0.01317 0.2452650.245265 0.0601550.060155
1717 23-Feb-1123-Feb-11 1125.551125.55 1.172761.17276 -0.94067-0.94067 0.8848560.884856
1818 24-Feb-1124-Feb-11 1111.81111.8 1.2367331.236733 -1.00464-1.00464 1.0093031.009303
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1919 25-Feb-1125-Feb-11 1110.051110.05 0.1576510.157651 -0.15765-0.15765 0.0248540.024854
2020 28-Feb-1128-Feb-11 1110.251110.25 -0.01801-0.01801 0.2501060.250106 0.0625530.062553
AVGAVG 0.2320920.232092 VARIANCEVARIANCE 2.8660152.866015
SDSD 1.69231.6923
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard DeviationFor (MAR-2010)
Table No-12
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Mar-111-Mar-11 1124.51124.5 -1.26722-1.26722 0.9779690.977969 0.9564230.956423
22 3-Mar-113-Mar-11 1150.21150.2 -2.23439-2.23439 1.9451431.945143 3.783583.78358
33 4-Mar-114-Mar-11 1135.551135.55 1.2901241.290124 -1.57938-1.57938 2.4944262.494426
44 7-Mar-117-Mar-11 1108.251108.25 2.4633432.463343 -2.75259-2.75259 7.5767777.576777
55 8-Mar-118-Mar-11 1117.71117.7 -0.84549-0.84549 0.5562350.556235 0.3093970.309397
66 9-Mar-119-Mar-11 1126.71126.7 -0.79879-0.79879 0.5095420.509542 0.2596330.259633
77 10-Mar-1110-Mar-11 1108.551108.55 1.6372741.637274 -1.92653-1.92653 3.71153.7115
88 11-Mar-1111-Mar-11 1077.051077.05 2.9246552.924655 -3.21391-3.21391 10.329210.3292
99 14-Mar-1114-Mar-11 1097.551097.55 -1.8678-1.8678 1.5785451.578545 2.4918052.4918051010 15-Mar-1115-Mar-11 1089.81089.8 0.711140.71114 -1.00039-1.00039 1.0007821.000782
1111 16-Mar-1116-Mar-11 1114.851114.85 -2.24694-2.24694 1.9576881.957688 3.8325413.832541
1212 17-Mar-1117-Mar-11 10981098 1.5346081.534608 -1.82386-1.82386 3.3264643.326464
1313 18-Mar-1118-Mar-11 1082.751082.75 1.4084511.408451 -1.6977-1.6977 2.8821922.882192
1414 21-Mar-1121-Mar-11 1070.851070.85 1.1112671.111267 -1.40052-1.40052 1.9614511.961451
1515 22-Mar-1122-Mar-11 1069.51069.5 0.1262270.126227 -0.41548-0.41548 0.1726220.172622
1616 23-Mar-1123-Mar-11 1064.351064.35 0.4838630.483863 -0.77311-0.77311 0.5977060.597706
1717 24-Mar-1124-Mar-11 1093.41093.4 -2.65685-2.65685 2.3675992.367599 5.6055245.605524
1818 25-Mar-1125-Mar-11 1119.651119.65 -2.34448-2.34448 2.0552312.055231 4.2239764.223976
1919 28-Mar-1128-Mar-11 1119.91119.9 -0.02232-0.02232 -0.26693-0.26693 0.0712510.0712512020 30-Mar-1130-Mar-11 1151.951151.95 -2.78224-2.78224 2.4929872.492987 6.2149866.214986
2121 31-Mar-1131-Mar-11 1183.91183.9 -2.69871-2.69871 2.4094562.409456 5.8054795.805479
AVGAVG -0.28925-0.28925 VAIRANCEVAIRANCE 3.2194153.219415
SDSD 1.7942721.794272
Source: National Stock exchange, Historical Data, Security Wise Data.
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Return, Variance and Standard Deviation
For (APRIL-2011)
Table No-13
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Apr-111-Apr-11 1180.151180.15 0.317750.31775 -0.18488-0.18488 0.034180.03418
22 4-Apr -114-Apr-11 1213.21213.2 -2.7242-2.7242 2.8570732.857073 8.1628688.162868
33 5-Apr-115-Apr-11 1239.851239.85 -2.14945-2.14945 2.2823262.282326 5.2090145.209014
44 6-Apr-116-Apr-11 1211.851211.85 2.3105172.310517 -2.17764-2.17764 4.7421344.742134
55 7-Apr-117-Apr-11 1199.21199.2 1.054871.05487 -0.922-0.922 0.8500780.850078
66 8-Apr-118-Apr-11 11961196 0.2675590.267559 -0.13469-0.13469 0.018140.01814
77 11-Apr-1111-Apr-11 1178.11178.1 1.5193961.519396 -1.38652-1.38652 1.9224451.922445
88 13-Apr-1113-Apr-11 1270.11270.1 -7.24352-7.24352 7.3763977.376397 54.4112354.41123
99 15-Apr-1115-Apr-11 1191.41191.4 6.6056746.605674 -6.4728-6.4728 41.8971541.897151010 18-Apr-1118-Apr-11 1144.61144.6 4.0887654.088765 -3.95589-3.95589 15.6490815.64908
1111 19-Apr-1119-Apr-11 1164.71164.7 -1.72577-1.72577 1.8586391.858639 3.454543.45454
1212 20-Apr-1120-Apr-11 1218.71218.7 -4.43095-4.43095 4.5638244.563824 20.8284920.82849
1313 21-Apr-1121-Apr-11 1192.11192.1 2.2313562.231356 -2.09848-2.09848 4.4036334.403633
1414 25-Apr-1125-Apr-11 1197.851197.85 -0.48003-0.48003 0.61290.6129 0.3756460.375646
1515 26-Apr-1126-Apr-11 11891189 0.7443230.744323 -0.61145-0.61145 0.3738710.373871
1616 27-Apr-1127-Apr-11 1180.61180.6 0.7115030.711503 -0.57863-0.57863 0.3348120.334812
1717 28-Apr-1128-Apr-11 1158.651158.65 1.8944461.894446 -1.76157-1.76157 3.103143.10314
1818 29-Apr-1129-Apr-11 1165.651165.65 -0.60052-0.60052 0.7333960.733396 0.537870.53787
AVGAVG
0.1328730.132873
VAIRANCEVAIRANCE
9.2393529.239352
SDSD 3.039633.03963
Source: National Stock exchange, Historical Data, Security Wise Data.
Monthly Average Return, Variance and Standard Deviation of Tcs Ltd
(NOV2010-APRIL2011)
MONTHMONTH RETURNRETURN VAIRANCEVAIRANCE SDSD
NOV NOV 0.030.03 2.82.8 1.61.6
DECDEC -0.3-0.3 1.21.2 1.11.1
JANJAN 0.040.04 3.83.8 1.91.9
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FEBFEB 0.230.23 2.82.8 1.61.6
MAR MAR -0.2-0.2 3.23.2 1.71.7
APR APR 0.10.1 9.29.2 3.033.03
Return (x)
Monthly Returns
Interpretation:
During NOV2010- APRIL 2011 return on TCS LTD stock varies between 0.03 to 0.1 and the
risk for the same period varies between 2.8 to 9.2. the highest volatility was found in the
month of February 11 where the lowest in the study period and the risk is very high . the
reasons for this may be the investor’s expectation towards the financial performance of the
company.
Variance
Variance
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Interpretation:
During NOV 2010-APRIL 2011 variance on TCS LTD stock varies between 2.8 to
9.2, and the return for the same period is 0.03 to 0.1. the highest volatility was found in the
month of Feb. the reasons for this may be the investor’s expectation towards the financial
performance of the company.
Standard Deviation
SD
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Interpretation:
During NOV 2010 – APR 2011 Standard deviation on TCS LTS stock varies between 1.6
to 0.03 and the risk for the same period varies between 2.8 to 9.2. The highest volatility was
found in the month of Feb 2011 where the return is lowest in the study period and the risk is
very high. The reasons for this may be the investor’s expectation towards the financial
performance of the company.
Return, Variance and Standard Deviation
Wipro ltd
For (NOV-2010)Table No-15
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SNOSNO DATEDATE CLOSECLOSE RETURN(X)RETURN(X) X-AVGX-AVG (X-AVG)^2(X-AVG)^2
29-Oct-1029-Oct-10 419.75419.75
11 1-Nov-101-Nov-10 423.7423.7 0.9410360.941036 -0.96199-0.96199 0.925420.92542
22 2-Nov-102-Nov-10 433.85433.85 2.3955632.395563 -2.41651-2.41651 5.839545.8395433 3-Nov-103-Nov-10 434.7434.7 0.195920.19592 -0.21687-0.21687 0.0470330.047033
44 4-Nov-104-Nov-10 436.75436.75 -0.29677-0.29677 0.2758190.275819 0.0760760.076076
55 5-Nov-105-Nov-10 438.05438.05 0.2976530.297653 0.2758190.275819 0.0760760.076076
66 6-Nov-106-Nov-10 431.2431.2 -1.56375-1.56375 1.5427971.542797 2.3802232.380223
77 7-Nov-107-Nov-10 431.65431.65 0.104360.10436 -0.12531-0.12531 0.0157030.015703
88 8-Nov-108-Nov-10 436.55436.55 1.1351791.135179 -1.15613-1.15613 1.3366371.336637
99 9-Nov-109-Nov-10 428.65428.65 -1.80964-1.80964 1.7886931.788693 3.1994213.199421
1010 10-Nov-1010-Nov-10 425.2425.2 -0.80485-0.80485 0.7839010.783901 0.6145010.614501
1111 11-Nov-1011-Nov-10 433.2433.2 1.8814681.881468 -1.90242-1.90242 3.6191973.619197
1212 12-Nov-1012-Nov-10 421.75421.75 -2.64312-2.64312 2.622172.62217 6.8757746.875774
1313 13-Nov-1013-Nov-10 418.4418.4 -0.79431-0.79431 0.7733580.773358 0.5980830.598083
1414 14-Nov-1014-Nov-10 400.85400.85 -4.19455-4.19455 4.1735994.173599 17.4189317.41893
1515 15-Nov-1015-Nov-10 418.3418.3 4.3532494.353249 -4.3742-4.3742 19.1336319.13363
1616 23-Nov-1023-Nov-10 417.05417.05 -0.29883-0.29883 0.2778770.277877 0.0772160.077216
1717 24-Nov-1024-Nov-10 409.7409.7 -1.76238-1.76238 1.7414271.741427 3.0325693.032569
1818 25-Nov-1025-Nov-10 406.25406.25 -0.84208-0.84208 0.8211280.821128 0.6742520.674252
1919 26-Nov-1026-Nov-10 407.5407.5 0.3076920.307692 -0.32864-0.32864 0.1080070.108007
2020 27-Nov-1027-Nov-10 417.75417.75 2.5153372.515337 -2.53629-2.53629 6.432766.43276
2121 28-Nov-1028-Nov-10 419.6419.6 0.4428490.442849 -0.4638-0.4638 0.215110.21511
AVGAVG -0.02095-0.02095 VARIANCEVARIANCE 3.4617223.461722
SDSD 1.861.86
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard DeviationFor (DEC-2010)
Table No-16
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Dec-111-Dec-11 414.72414.72 1.171.17 -1.87673-1.87673 3.522113.52211
22 2-Dec-112-Dec-11 426.05426.05 -2.65931-2.65931 1.9525841.952584 3.8125843.812584
33 3-Dec-113-Dec-11 427.6427.6 -0.36249-0.36249 -0.34424-0.34424 0.1185010.118501
44 6-Dec-116-Dec-11 430.65430.65 -0.70823-0.70823 0.0015030.001503 2.26E-062.26E-06
55 7-Dec-117-Dec-11 434.95434.95 -0.98862-0.98862 0.2818910.281891 0.0794620.079462
66 8-Dec-118-Dec-11 435.3435.3 -0.0804-0.0804 -0.62632-0.62632 0.3922820.392282
77 9-Dec-119-Dec-11 437.1437.1 -0.41181-0.41181 -0.29492-0.29492 0.086980.08698
88 10-Dec-1110-Dec-11 450.95450.95 -3.07129-3.07129 2.3645652.364565 5.591175.59117
99 13-Dec-1113-Dec-11 448.15448.15 0.6247910.624791 -1.33152-1.33152 1.7729441.772944
1010 14-Dec-1114-Dec-11 454.4454.4 -1.37544-1.37544 0.6687120.668712 0.4471750.447175
1111 15-Dec-1115-Dec-11 458.4458.4 -0.8726-0.8726 0.1658720.165872 0.0275130.027513
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1212 16-Dec-1116-Dec-11 470.05470.05 -2.47846-2.47846 1.7717311.771731 3.1390323.139032
1313 20-Dec-1120-Dec-11 477.6477.6 -1.58082-1.58082 0.8740920.874092 0.7640370.764037
1414 21-Dec-1121-Dec-11 485.5485.5 -1.62719-1.62719 0.920460.92046 0.8472470.847247
1515 22-Dec-1122-Dec-11 477.3477.3 1.7179971.717997 -2.42473-2.42473 5.8792945.879294
1616 23-Dec-1123-Dec-11 479.5479.5 -0.45881-0.45881 -0.24792-0.24792 0.0614630.061463
1717 24-Dec-1124-Dec-11 489.45489.45 -2.03289-2.03289 1.3261661.326166 1.7587151.7587151818 27-Dec-1127-Dec-11 485.1485.1 0.8967220.896722 -1.60345-1.60345 2.5710542.571054
1919 28-Dec-1128-Dec-11 491.35491.35 -1.27201-1.27201 0.5652770.565277 0.3195380.319538
2020 29-Dec-1129-Dec-11 488.5488.5 0.5834190.583419 -1.29015-1.29015 1.664481.66448
2121 30-Dec-1130-Dec-11 489.95489.95 -0.29595-0.29595 -0.41078-0.41078 0.168740.16874
2222 31-Dec-1131-Dec-11 491.25491.25 -0.26463-0.26463 -0.4421-0.4421 0.195450.19545
AVGAVG -0.70673-0.70673 VARIANCEVARIANCE 1.509991.50999
SDSD 1.2281.228
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard DeviationFor (Jan-2011)
Table No-17
SNOSNO DATEDATE closingclosing returnreturn x-avgx-avg (x-avg)^2(x-avg)^2
11 3-Jan-113-Jan-11 483.05483.05 1.6975471.697547 -1.108-1.108 1.2276551.227655
22 4-Jan-114-Jan-11 484.65484.65 -0.33014-0.33014 0.9196860.919686 0.8458220.84582233 5-Jan-115-Jan-11 485.65485.65 -0.20591-0.20591 0.795460.79546 0.6327570.632757
44 6-Jan-116-Jan-11 486.35486.35 -0.14393-0.14393 0.733480.73348 0.5379930.537993
55 7-Jan-117-Jan-11 476.95476.95 1.9708561.970856 -1.38131-1.38131 1.9080061.908006
66 10-Jan-1110-Jan-11 464.6464.6 2.6582012.658201 -2.06865-2.06865 4.2793124.279312
77 11-Jan-1111-Jan-11 467.45467.45 -0.60969-0.60969 1.1992421.199242 1.438181.43818
88 12-Jan-1112-Jan-11 467.7467.7 -0.05345-0.05345 0.6430040.643004 0.4134540.413454
99 13-Jan-1113-Jan-11 453.55453.55 3.1198323.119832 -2.53028-2.53028 6.4023266.402326
1010 14-Jan-1114-Jan-11 463.1463.1 -2.06219-2.06219 2.651742.65174 7.0317277.031727
1111 17-Jan-1117-Jan-11 466.75466.75 -0.782-0.782 1.3715541.371554 1.881161.88116
1212 18-Jan-1118-Jan-11 478.55478.55 -2.46578-2.46578 3.0553333.055333 9.3350589.335058
1313 19-Jan-1119-Jan-11 476.1476.1 0.5145980.514598 0.0749530.074953 0.0056180.005618
1414 20-Jan-1120-Jan-11 477.5477.5 -0.29319-0.29319 0.8827440.882744 0.7792380.779238
1515 21-Jan-1121-Jan-11 455.95455.95 4.7263954.726395 -4.13684-4.13684 17.1134817.11348
1616 24-Jan-1124-Jan-11 443.9443.9 2.7145752.714575 -2.12502-2.12502 4.515734.51573
1717 25-Jan-1125-Jan-11 446.9446.9 -0.67129-0.67129 1.2608421.260842 1.5897221.589722
1818 27-Jan-1127-Jan-11 438.65438.65 1.8807711.880771 -1.29122-1.29122 1.6672491.667249
1919 28-Jan-1128-Jan-11 437.6437.6 0.2399450.239945 0.3496060.349606 0.1222240.122224
2020 31-Jan-1131-Jan-11 438.1438.1 -0.11413-0.11413 0.703680.70368 0.4951650.495165
AVGAVG 0.5895510.589551 VARIANCEVARIANCE 3.1110943.111094
SDSD 1.7631.763
Source: National Stock exchange, Historical Data, Security Wise Data
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Return, Variance and Standard DeviationFor (FEB-2011)
Table No-18
SNOSNO DATEDATE CLOSECLOSE RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Feb-111-Feb-11 429.35429.35 2.0379642.037964 -2.14549-2.14549 4.603134254.60313425
22 2-Feb-112-Feb-11 437.85437.85 -1.9413-1.9413 1.8337761.833776 3.3627362133.362736213
33 3-Feb-113-Feb-11 442442 -0.93891-0.93891 0.8313860.831386 0.6912033740.69120337444 4-Feb-114-Feb-11 436.7436.7 -1.21365-1.21365 1.106121.10612 1.2235019031.223501903
55 7-Feb-117-Feb-11 426.9426.9 2.295622.29562 -2.40315-2.40315 5.7751164335.775116433
66 8-Feb-118-Feb-11 425.75425.75 0.2701120.270112 -0.37764-0.37764 0.1426113490.142611349
77 9-Feb-119-Feb-11 424.1424.1 0.3890590.389059 -0.49659-0.49659 0.2465984440.246598444
88 10-Feb-1110-Feb-11 417.95417.95 1.4714681.471468 -1.579-1.579 2.4932267552.493226755
99 11-Feb-1111-Feb-11 420.25420.25 -0.54729-0.54729 0.4397660.439766 0.1933938420.193393842
1010 14-Feb-1114-Feb-11 424.4424.4 -0.97785-0.97785 0.8703230.870323 0.7574629490.757462949
1111 15-Feb-1115-Feb-11 425.45425.45 -0.2468-0.2468 0.139270.13927 0.0193961050.019396105
1212 16-Feb-1116-Feb-11 437.15437.15 -2.67643-2.67643 2.5688992.568899 6.5992433346.599243334
1313 17-Feb-1117-Feb-11 432.05432.05 1.1804191.180419 -1.28795-1.28795 1.6588062981.6588062981414 18-Feb-1118-Feb-11 432.7432.7 -0.15022-0.15022 0.0426920.042692 0.0018226020.001822602
1515 21-Feb-1121-Feb-11 451.65451.65 -4.19573-4.19573 4.0881994.088199 16.7133724516.71337245
1616 22-Feb-1122-Feb-11 444.8444.8 1.5400181.540018 -1.64755-1.64755 2.714406492.71440649
1717 23-Feb-1123-Feb-11 436.8436.8 1.8315021.831502 -1.93903-1.93903 3.7598351763.759835176
1818 24-Feb-1124-Feb-11 427.15427.15 2.259162.25916 -2.36669-2.36669 5.6012080955.601208095
1919 25-Feb-1125-Feb-11 433.05433.05 -1.36243-1.36243 1.2549021.254902 1.5747782021.574778202
2020 28-Feb-1128-Feb-11 438.2438.2 -1.17526-1.17526 1.0677351.067735 1.1400576611.140057661
AVGAVG -0.10753-0.10753 VARIANCEVARIANCE 2.9635955962.963595596
SDSD 1.7211.721
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard Deviation
For (MAR-11)Table No-19
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SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Mar-111-Mar-11 443.45443.45 -1.183-1.183 0.7768270.776827 0.6034610.603461
22 3-Mar-113-Mar-11 444.3444.3 -0.19131-0.19131 -0.21486-0.21486 0.0461650.046165
33 4-Mar-114-Mar-11 441.4441.4 0.6570.657 -1.06317-1.06317 1.1303371.130337
44 7-Mar-117-Mar-11 447.25447.25 -1.30799-1.30799 0.9018210.901821 0.813280.81328
55 8-Mar-118-Mar-11 449449 -0.38976-0.38976 -0.01642-0.01642 0.000270.00027
66 9-Mar-119-Mar-11 450.95450.95 -0.43242-0.43242 0.0262480.026248 0.0006890.000689
77 10-Mar-1110-Mar-11 454.8454.8 -0.84653-0.84653 0.4403530.440353 0.1939110.193911
88 11-Mar-1111-Mar-11 449.3449.3 1.2241261.224126 -1.6303-1.6303 2.6578752.657875
99 14-Mar-1114-Mar-11 456.25456.25 -1.52329-1.52329 1.1171151.117115 1.2479461.247946
1010 15-Mar-1115-Mar-11 442.4442.4 3.1306513.130651 -3.53682-3.53682 12.5091212.50912
1111 16-Mar-1116-Mar-11 445.4445.4 -0.67355-0.67355 0.2673790.267379 0.0714920.071492
1212 17-Mar-1117-Mar-11 443.45443.45 0.4397340.439734 -0.84591-0.84591 0.7155580.715558
1313 18-Mar-1118-Mar-11 439.9439.9 0.8070020.807002 -1.21317-1.21317 1.4717921.471792
1414 21-Mar-1121-Mar-11 433.9433.9 1.3828071.382807 -1.78898-1.78898 3.2004493.2004491515 22-Mar-1122-Mar-11 434.4434.4 -0.1151-0.1151 -0.29107-0.29107 0.0847230.084723
1616 23-Mar-1123-Mar-11 436.6436.6 -0.50389-0.50389 0.0977210.097721 0.0095490.009549
1717 24-Mar-1124-Mar-11 439.65439.65 -0.69373-0.69373 0.2875610.287561 0.0826910.082691
1818 25-Mar-1125-Mar-11 455.9455.9 -3.56438-3.56438 3.1582063.158206 9.9742629.974262
1919 28-Mar-1128-Mar-11 461.9461.9 -1.29898-1.29898 0.892810.89281 0.7971090.797109
2020 29-Mar-1129-Mar-11 463.5463.5 -0.3452-0.3452 -0.06097-0.06097 0.0037180.003718
2121 30-Mar-1130-Mar-11 472.85472.85 -1.97737-1.97737 1.5711991.571199 2.4686652.468665
2222 31-Mar-1131-Mar-11 480.2480.2 -1.53061-1.53061 1.124441.12444 1.2643641.264364
AVGAVG -0.40617-0.40617 VARIANCEVARIANCE 1.7885191.788519
SDSD
1.3371.337
Source: National Stock exchange, Historical Data, Security Wise Data.
Return, Variance and Standard DeviationFor (APRIL-2011)
Table No-20
SNOSNO DATEDATE CLOSINGCLOSING RETURNRETURN X-AVGX-AVG (X-AVG)^2(X-AVG)^2
11 1-Apr-111-Apr-11 446.05446.05 7.6560927.656092 -7.24171-7.24171 52.442452.4424
22 4-Apr-114-Apr-11 481481 -7.26611-7.26611 7.6804927.680492 58.9899658.98996
33 5-Apr-115-Apr-11 455.5455.5 5.5982445.598244 -5.18386-5.18386 26.8724426.87244
44 6-Apr-116-Apr-11 465.95465.95 -2.24273-2.24273 2.657112.65711 7.0602347.060234
55 7-Apr-117-Apr-11 472.45472.45 -1.37581-1.37581 1.7901871.790187 3.204773.20477
66 8-Apr-118-Apr-11 465.55465.55 1.4821181.482118 -1.06774-1.06774 1.1400641.140064
77 11-Apr-1111-Apr-11 460460 1.2065221.206522 -0.79214-0.79214 0.6274880.627488
88 13-Apr-1113-Apr-11 472.4472.4 -2.62489-2.62489 3.0392743.039274 9.2371889.237188
99 15-Apr-1115-Apr-11 449.8449.8 5.0244555.024455 -4.61008-4.61008 21.2527921.25279
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1010 18-Apr-1118-Apr-11 445.4445.4 0.9878760.987876 -0.5735-0.5735 0.3288980.328898
1111 19-Apr-1119-Apr-11 449.55449.55 -0.92315-0.92315 1.3375251.337525 1.7889741.788974
1212 20-Apr-1120-Apr-11 463.65463.65 -3.04109-3.04109 3.4554673.455467 11.9402511.94025
1313 21-Apr-1121-Apr-11 463.15463.15 0.1079560.107956 0.3064240.306424 0.0938960.093896
1414 25-Apr-1125-Apr-11 466.2466.2 -0.65423-0.65423 1.0686061.068606 1.1419181.141918
1515 26-Apr-1126-Apr-11 464.7464.7 0.3227890.322789 0.0915910.091591 0.0083890.0083891616 27-Apr-1127-Apr-11 451.1451.1 3.0148533.014853 -2.60047-2.60047 6.7624576.762457
1717 28-Apr-1128-Apr-11 446.6446.6 1.0076131.007613 -0.59323-0.59323 0.3519250.351925
1818 29-Apr-1129-Apr-11 450.3450.3 -0.82167-0.82167 1.2360551.236055 1.5278311.527831
AVGAVG 0.414380.41438 VARIANCEVARIANCE 11.3762211.37622
SDSD 3.3713.371
Source: National Stock exchange, Historical Data, Security Wise Data.
Monthly Average Return, Variance and Standard Deviation of Wipro Ltd(NOV2010-APRIL2011)
Table No-21
MONTHMONTH RETURNRETURN VARIANCEVARIANCE SDSD
NOV NOV -0.02-0.02 3.43.4 1.861.86
DECDEC -0.7-0.7 1.51.5 1.221.22
JANJAN 0.50.5 3.13.1 1.761.76
FEBFEB -0.1-0.1 2.92.9 1.71.7
MAR MAR -0.4-0.4 1.71.7 1.31.3
APR APR 0.40.4 11.311.3 3.33.3
Return (X)
Monthly Returns
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Interpretation:
During NOV 2010- APRIL 2011 return on Wipro ltd stock varies between -0.02 to 0.4
and the risk for the same period varies between 3.4 to 11.3. the lowest volatility was found in
the month 0.1 in the month of feb-11, where the return is lowest in the study period and the
risk is very high . The reasons for this may be investor’s expectation towards the financial
performance of the company.
Variance
Variance
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Interpretation:
During NOV 2010- APRIL 2011 Variance on Wipro ltd stock varies between 3.4
to 11.3, and the return for same period varies between -0.02 to 0.4, the highest volatility was
found in the month of Feb. 2011, when the return is lowest in the study period and the risk is
very high. The reasons for this may be investor’s expectation towards the financial
performance of the company.
Standard Deviation:
SD
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Interpretation:
During NOV 2010- APRIL 2011 return on Wipro Ltd stock varies between 1.86 to 3.3, and
the return for the same period varies between -0.02 to 0.4. the highest volatility was found in
the month of Feb. 2011, where the return is lowest in the study period and the risk is very high.
The reasons for this may be the investor’s expectation towards the financial performance of the
company .
Karl Pearson’s coefficient of correlation Between Infosys and Tcs LtdFor (NOV2010-APRIL 2011)
Table No- 22
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MONTHMONTH INFOSYSINFOSYS
RETURN(X)RETURN(X)TCSTCS
RETURN(Y)RETURN(Y)X=(XX=(X
AVG1)AVG1)Y=(YY=(Y
AVG2)AVG2)(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y
NOV NOV -0.11-0.11 0.03-0.03- -0.16-0.16 0.040.04 0.020.02 0.000.00 0.000.00
DECDEC -0.56-0.56 -0.3-0.3 -0.16-0.16 -0.28-0.28 0.280.28 0.080.08 0.170.17
JANJAN 0.440.44 0.040.04 0.380.38 0.050.05 0.140.14 0.000.00 0.020.02
FEBFEB 0.300.30 0.230.23 0.240.24 0.240.24 0.050.05 0.060.06 0.050.05MAR MAR -0.35-0.35 -0.2-0.2 -0.40-0.40 -0.18-0.18 0.160.16 0.030.03 0.070.07
APRILAPRIL 0.630.63 0.10.1 0.110.11 0.110.11 0.320.32 0.010.01 0.060.06
AVGAVG 0.050.05 -0.016-0.016
SUMSUM 0.000.00 0.000.00 0.170.17 0.150.15 0.160.16
Karl Pearson’s coefficient of correlation (r) = 1.00
Average returns of Infosys and Wipro
Interpretation:
Above table and chart depicts the correlation between Infosys and Tcs ltd. Here
Infosys and Tcs ltd can move 10% on time in the same track. The correlation between Infosys
and Tcs ltd is a positive correlation that 1.00.so we can conclude that the price movements of
Infosys and Tcs are not in the same way.
Karl Pearson’s Coefficient of Correlation Between Infosys and Wipro Ltd
For (NOV2010-APRIL 2011)
Table No- 23
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MONTHMONTH INFOSYSINFOSYS
RETURN(X)RETURN(X)WIPROWIPRO
RETURN(Y)RETURN(Y)X=(XX=(X
AVG1)AVG1)Y=(YY=(Y
AVG2)AVG2)(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y
NOV NOV -0.116-0.116 -0.02-0.02 -0.16-0.16 0.040.04 0.020.02 0.000.00 0.000.00
DECDEC -0.56-0.56 -0.7-0.7 -0.61-0.61 -0.63-0.63 0.380.38 0.400.40 0.390.39
JANJAN 0.440.44 0.50.5 0.380.38 0.510.51 0.140.14 0.260.26 0.190.19
FEBFEB 0.300.30 -0.1-0.1 0.240.24 -0.03-0.03 0.050.05 0.000.00 0.000.00MAR MAR -0.35-0.35 -0.4-0.4 -0.40-0.40 -0.33-0.33 0.160.16 0.110.11 0.130.13
APRILAPRIL 0.630.63 0.40.4 0.570.57 0.460.46 0.320.32 0.210.21 0.2 60.2 6
AVG1AVG1 0.050.05 -0.06-0.06
SUMSUM 0.130.13 0.000.00 0.170.17 0.030.03 0.060.06
Karl Pearson’s coefficient of correlation (r) = 0.84
Correlation between Infosys and Wipro ltd
Interpretation:
Above table and chart depicts the correlation between Infosys and Wipro ltd. Here Infosys
and Wipro ltd can move 80% on the same track. The correlation between Infosys ltd is a
positive correlation that 0.84, so we can conclude that the price movements of Infosys and
Wipro are the same way.
Karl Pearson’s Coefficient of Correlation Between Tcs and Wipro ltd
For (NOV2010-APRIL 2011)
TABLE NO- 23
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MONTHMONTH TCSTCS RETURN(X)RETURN(X)
WIPROWIPRO RETURN(Y)RETURN(Y)
X=(XX=(X AVG1)AVG1)
Y=(YY=(Y AVG2)AVG2)
(X)^2(X)^2 (Y)^2(Y)^2 X*YX*Y
NOV NOV 0.030.03 -0.02-0.02 0.040.04 0.030.03 0.000.00 0.000.00 0.000.00
DECDEC -0.3-0.3 -0.7-0.7 -0.28-0.28 -0.64-0.64 0.080.08 0.410.41 0.180.18
JANJAN 0.040.04 0.50.5 0.050.05 0.550.55 0.000.00 0.300.30 0.030.03
FEBFEB 0.230.23 -0.1-0.1 0.240.24 -0.04-0.04 0.060.06 0.000.00 0.010.01MAR MAR -0.2-0.2 -0.4-0.4 -0.18-0.18 -0.34-0.34 0.030.03 0.120.12 0.060.06
APRILAPRIL 0.10.1 0.40.4 0.110.11 0.450.45 0.010.01 0.200.20 0.050.05
AVG1AVG1 -0.01-0.01 -0.05-0.05
SUMSUM 0.000.00 0.210.21 0.030.03 0.170.17 0.050.05
Karl Pearson’s coefficient correlation (r) = 0.72
Correlation between Wipro and Tcs ltd
Interpretation:
Above table and chart depicts the correlation between Wipro ltd and Tcs. Here Wipro and
Tcs ltd can move 70% on time in the same track. The correlation between Wipro and Tcs ltd is
a positive correlation that is 0.72. So we can conclude that the price movements of Wipro and
Tcs are some in the same way.
Findings
The following facts were found out during the project work.
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• From standard deviation table, we can observe that standard deviation is high in
Wipro when compare to the other sectors.
• The Standard Deviation is increasing in all the sectors.
• In Infosys, Wipro and Tcs a negative average returns is observed in the month
of March.
• Karl Pearson’s coefficient correlation is high, when compare between two
companies Tcs ltd and Wipro ltd.
• We can also observe that average returns is high in Wipro company when
compare to other companies.
Suggestions
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• As S.D was high with Wipro followed by TCS, risk taking investors can prefer
to invest here as these give higher returns. Day traders can invest an accumulate
good returns as volatility was high. However there is also possibility of hugeloss in case of adverse movement.
• Infosys has low standard deviation and also volatility less. It gives minimum
risk to investor among all companies studied. However returns also low. Risk
averse and long time investors can consider while investing among all
companies.
•
When we want the returns higher we have to bear higher risk. But if we bear higher risk it is meaningless to invest our hard earned income. In this present
project the highest earned income is obtained by the company Wipro.
• In order to get more return from minimum risk we have to analyze the factor
like company background, performance, market value and historical data. It is
suggested to all investors to analyze the fundamental as well as technical.
• Among all the securities Wipro Ltd is best with its high returns and low risk as
compared to Tcs and Infosys
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Conclusion
• During the year Nov 2010-to April 2011 the price movements of Infosys, Tata
consultancy services and Wipro ltd has been fluctuating.
• The returns of Wipro have been very high as comparison with other two companies that
are Infosys Tata consultancy services.
• Returns of Infosys are high in the month of Jan that is 0.4, in Tcs in the month of Feb.
that is 0.23 and in Wipro in the month of Jan 0.5.
• The correlation between in Infosys and Tcs is 1.00 .
• The correlation between Infosys and Wipro is 0.84.
• The correlation between Tcs and Wipro is 0.72.
• Therefore the correlation is high between Infosys and Tcs that is 1.00.
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BIBILIOGRAPHY
• Punithavathyapandian , Security Analysis and Portfolio Management Vikas Publisher’s
third edition2009
• S.C.Gupta Fundamental of statistics kalyani publishers. Fifth edition 2006
Websites
• www.infosys.com
• www.nseindia.com
• www.tcs.com
• www.way2wealth.com
• www.wipro.com