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PERFORMANCE ANALYSIS OF DIFFERENT SECTORS IN INDIAN STOCK MARKET AT Share Khan Ltd. Institute Guid e Organization Guide Dr K. B. Kiran Mr Adrasha Kumar Priyanka Chaudhary (09HM28)

Company Profile:

Company Profile SHARE KHAN the retail broking firm, having over eight decades of experience in the stock broking business. It has over 450 centres in more than 157 cities in India, of which 100 are fully-owned branches.

Introduction to Stock market:

Introduction to Stock market The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market Stock Exchange – A corporation of mutual organization which provide facility for stock broker and traders , to trade company stocks and other securities.

Problem Statement:

Problem Statement The SENSEX has crossed 2100 points also has gone below 7000 points in last 5 years In 2008 Sensex had reached below 7000 points causing lots of losses for investors The losses of the investors can be minimized by creating a good portfolio of diversified sectors No one can perfectly predict which direction the stock market will go, but little bit of research can help them to safeguard their money from unexpected fluctuations

Purpose of the study:

Purpose of the study To give the investors a clear picture about the performance of different sectors in Indian stock market by analyzing last three years data To know which sectors are more safe for investment and which are not and also the risk involve

Objectives of the study:

Objectives of the study 1) To find out which of the sectors of Indian stock market has performed well in three years 2) To compare the performance of different sectors in Indian stock market 3) To know which sectors are safe for the investment and which are riskier. 4) To help the investors to build a good portfolio.

PowerPoint Presentation:

Stock Exchange ( Exa - BSE) INDEX ( Sensex ) INDEX (BSE 500) INDEX (Midcap) SECTORS (IT) SECTORS (Finance) SECTORS ( Fmcg ) STOCK (SBI) STOCK (HDFC) STOCK (ICICI) STOCK (BOI) MY AREA OF RESEARCH

Sectors I have covered:

Sectors I have covered Automobile Bank Capital goods Energy Finance FMCG IT Media Metal Oil & Gas 10 Stocks of companies Per sector Top 10 Market capitalization in each sector

Research Methodology :

Research Methodology Approach - Descriptive Approach Data collection – Only Secondary data from source like BSE, NSE sites Sample - non-probability a) Quota Sampling for sectors b) Judgmental sampling for company selection

Model used for research:

Model used for research For knowing the performance of the sectors, I am calculating the “ Risk & Return” For this I have taken help of the CAPM model, which is a very reliable model

CAPM model:

CAPM model RI - RF Beta ( Slope) = RM – RF Where… RI- Return of the equity RF- Risk free return ( 6% / annum ..Assumed) RM- Market return ( Return of the index) * Beta of Market = 1

A Sample of Calculation of Risk &Return for Mahindra & Mahindra Ltd.:

A Sample of Calculation of Risk &Return for Mahindra & Mahindra Ltd. Month Close price Monthly Return (RI) Risk Free Return (RF) RI-RF Market Return (RM) RM-RF Dec-11 683.05 -5.64% 0.50% -6.14% -4.15% -4.65% Nov-11 723.85 -16.14% 0.50% -16.64% -8.93% -9.43% Oct-11 863.2 7.56% 0.50% 7.06% 7.60% 7.10% Sep-11 802.55 8.81% 0.50% 8.31% -1.34% -1.84% Aug-11 737.55 2.69% 0.50% 2.19% -8.36% -8.86% Mar-09 383.2 23.65% 0.50% 23.15% 9.19% 8.69% Feb-09 309.9 3.09% 0.50% 2.59% -5.65% -6.15% AVERAGE = 3.44% STD DEV = 0.14 BETA(Slope) = 1.02

Future course of actions:

Future course of actions Planning to include another 10 sectors in my study After that I will analyze the 20 sectors to find out their Return and Risk in last three years Will rank the sectors by their “ Risk & Return” based on my research

Sectors to be covered:

Sectors to be covered Healthcare Telecom Power Real estate Agriculture Chemical Hotel & Tourism Textile Consumer Durable Transport Equipment

PowerPoint Presentation:

THANK YOU

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