ABSTRACT

Project portfolio management implementation is a complex phenomenon among others

within the project portfolio management as a new concept of the management science. The
phenomenon is considered first, as a phase of the overall project portfolio management process, and
then as a specific projects itself. There are also considerations of the project portfolio management
implementation specific requirements, problems and final benefits for the organization able to complete
it successfully. Portfolio Administration is the albatross of the chief administration aggregation of an
alignment or business unit. This team, which ability be alleged the Product Committee, meets
consistently to administer the product activity and accomplish decisions about the product portfolio.
Often, this is the aforementioned accumulation that conducts the stage-gate reviews in the organization.

A analytic starting point is to actualize product action - markets, customers, products, action approach,
aggressive emphasis, etc. The additional footfall is to accept the annual or assets accessible to antithesis
the portfolio against. Third, anniversary activity accept to be adjourned for advantage (rewards),
investment requirements (resources), risks, and added adapted factors.

The ancient Portfolio Administration techniques optimized projects' advantage or banking allotment
application heuristic or algebraic models. However, this access paid little absorption to antithesis or
adjustment the portfolio to the organization's strategy. Scoring techniques weight and annual belief to
yield into annual investment requirements, profitability, accident and cardinal alignment. The
shortcoming with this access can be an over accent on banking measures and an disability to optimize
the mix of projects.

1
 CHAPTER-I
INTRODUCTION

2
 PORTFOLIO MANAGEMENT INTRODUCTION:
MEANING:
A portfolio may be a assortment of assets. The assets could also be physical or
money assets like stocks, bonds, notes, preferred shares, and so on. The individual
capitalist or a fund manager doesn't need to take a position all his cash in a very company's
stock, that may be a high risk. He would thus follow the old maxim that one shouldn't
place all the eggs in a very basket. during this means, he can do the goal of increasing
portfolio returns whereas minimizing portfolio risk through diversification.
 Portfolio management is that the management of varied money assets that compose
the portfolio.
 Portfolio management may be a call network that addresses the varied wants of
investors.
 In line with the Securities and Exchange Board of Asian country, the portfolio
manager is outlined as follows: "Portfolio suggests that the overall holdings of
securities happiness to 1 person".
 PORTFOLIOMANAGER is any individual World Health Organization advises or
directs or assumes the administration or administration of a securities portfolio or
the Funds beneath a contract or arrangement with a shopper on behalf of the
shopper (whether as AN quality manager in its sole discretion or otherwise) ,
DISCRETIONARY PORTFOLIO MANAGER suggests that a portfolio manager
elbow grease or elbow grease any discretion in investment or administering the client's
portfolio or funds as a part of a portfolio management contract.
FUNCTIONS OF THE PORTFOLIO MANAGEMENT:
 Process the investment strategy And choosing an investment combine to realize
the required investment objectives
 Providing a balanced portfolio that may not solely hedge against inflation, however
additionally optimize returns with the associated risk
 Timely purchase and sale of securities
 Increasing the come once tax by investment in varied tax-saving instruments.

3
STRUCTURE / METHOD OF THE EVERYDAY PORTFOLIO
ADMINISTRATION:
In the tiny company, the portfolio manager performs the task of a security analyst. For
medium and enormous enterprises, the functions of the portfolio manager and also the
security analyst square measure separate.

RESEARCH PORTFOLIO OPERATIONS

(e.g. Security (e.g. buying and
MANAGERS
Analysis) selling of Securities)

CLIENTS

CHARACTERISTICS OF THE PORTFOLIO MANAGEMENT:

Individuals profit vastly from portfolio management services for the subsequent reasons:
regardless of the standing of the capital market could also be, the capital markets have
created wonderful returns over a protracted amount of your time compared to different
styles of investment. The come on bank deposits, shares etc. is far below on the stock
exchange.
The Indian stock markets are terribly difficult. though there are thousands of corporations
that solely list a couple of hundred with the required liquidity. Even among these, solely a
couple of have the expansion prospects contributive to investment. it's not possible for
someone WHO needs to take a position and sit down and analyze of these subtleties of the
market, unless he will nothing else.
though associate capitalist understands the intricacies of the market and may separate the
chaff from the grain, the commercialism practices in Republic of are thus difficult that it's
very tough for associate capitalist to trade his deliveries and payments on all the main
stock exchanges in India

4
1.2 NEED AND IMPORTANCE OF STUDIES:
Portfolio management has developed into associate freelance tutorial discipline in India.
The portfolio theory that deals with the rational investment call method has become
associate integral a part of monetary literature.
Investing in securities like stocks, bonds and bonds is each profitable and exciting. it's so
reward able, however carries tons of risk and needs creative skills. Investment in financials
is taken into account one in all the riskiest investment opportunities nowadays. it's rare for
investors to take a position all their savings in an exceedingly single security. Instead, they
have an inclination to take a position in an exceedingly cluster of securities. This security
cluster is named PORTFOLIO. making a portfolio helps cut back risk while not impacting
returns. Portfolio management deals with the analysis of individual securities still because
the theory and apply of optimally combining securities into portfolios.
Modern theory believes diversification will cut back risk. Investors will diversify by
holding an outsized variety of shares in corporations in several regions, industries or
corporations that manufacture differing types of product lines. trendy theory believes
within the perspective of combos of securities beneath risk and yield conditions.

1.3 OBJECTIVES OF THE STUDY:

1. Investigation of the investment pattern and therefore the associated risks and rewards in
Karvy Stock Broking restricted.
2. establish the best portfolio of Karvy Stock Broking restricted, that offers the capitalist of
Karvy Stock Broking restricted associate best come with minimum risk.
3. to work out whether or not the portfolio risk is below the individual risk on that the
portfolios are composed
4. to ascertain if the chosen portfolio provides a satisfactory and consistent come to the
capitalist
5. Understand, analyze and choose the most effective portfolio

5
1.4 Hypothesis:
Null Hypothesis (Ho): there's no important distinction between risk and reward between
selected business combos.
Alternative hypothesis (H1): there's a major distinction between risk and reward between
selected business combos.
1.5 STUDIES:
This study addresses the Markowitz model.
• Specification and qualification of capitalist objectives, restrictions and preferences within
the variety of an announcement of investment policy.
• Identification and qualification of capital market expectations for the economy, market
sectors, sectors and individual stocks.
• Allocation of plus and institution of applicable portfolio methods for every asset category
and choice of individual securities.
• activity and evaluating performance to make sure accomplishment of capitalist
objectives.
• Monitor portfolio factors and reply to changes in capitalist objectives, restrictions and /
or capital market expectations.
If necessary, rebalance the portfolio by repetition the plus allocation, the portfolio strategy,
and therefore the security choice.
1.6 METHODOLOGY
METHODS OF KNOWLEDGE ASSORTMENT
The data assortment strategies embrace each the first and secondary acquisition strategies.
Primary assortment methods:
This technique includes the information assortment from the private interview with the
licensed signatories and members of Karvy Stock Broking restricted.
Secondary assortment methods:
The secondary assortment strategies embrace the lectures of the Department of Market
Operations oversee then on also because the information collected from the news,
magazines and numerous book editions of this study oversee

6
TOOLS:
1. Online Web
2. Direct information
3. Revealed articles
4. Magazines and newspapers
TIME PERIOD:
The analysis are going to be administrated for a amount of two months in March and
Gregorian calendar month of 2019.
1.7 LIMITATIONS OF THE STUDY:
1. Portfolio creation is restricted to four firms in line with the Markowitz model.
2. Bovine spongiform encephalitis lists analyze only a few and every which way selected
scripts / firms.
3. an in depth study of the subject wasn't attainable owing to the restricted size of the
project.
4. There was a deadline for the analysis study, i. H. For a amount of 2 months.

7
1.8 CHAPTER:
CHAPTER 1
It covers the introduction, the requirement and therefore the importance of the study, the
goals, the hypothesis, the scope, the methodology and therefore the limitations of the
subject.
CHAPTER 2
It covers the theoretical framework, discretionary and non-discretionary portfolio
management, the which means and criteria for portfolio choices, and therefore the qualities
of the portfolio manager. It conjointly includes risk varieties, CAPM.
CHAPTER 3
It covers trade and company profile, engaging valuations, development, Indian stock
exchanges, NSE, coming up with and trade objectives. Stock broker services, overview,
services, vary of services.
CHAPTER 4
It includes information analysis and interpretations of varied firms like ROI, risk, SD,
correlation of CIPLA, RANBAXY, BAJAJ AUTO, MAHENDRA and MAHENDRA.
CHAPTER 5
It covers results, suggestions and conclusions of the simplest portfolio combination
CIPLA, RANBAXY, BAJAJ AUTO, MAHENDRA AND MAHENDRA

8
 CHAPTER-II

THEORITICAL FRAMEWORK

9
DISCRETIONARY PORTFOLIO MANAGEMENT SERVICE (DPMS):
With this kind of service, the client shares their cash with the manager World Health
Organization, in turn, will all the work, makes all the choices, and makes a decent come
on the investment and charges. to maximize returns, most portfolio managers within the
Discretionary Portfolio Management Service park the funds in securities industry
instruments like nightlong Market, 180-Day Treasury Bills and 90-Day Bills of
Exchange. Typically, the come on such AN investment varies between fourteen and
eighteen %, counting on the nightlong rates in result at the time of the investment.
NON-DISCRETIONARY PORTFOLIO MANAGEMENT SERVICE (NDPMS):
The manager acts as a authority, however the capitalist is liberated to settle for or reject
the manager's recommendation. The paper work is additionally disbursed by the manager
for a service charge. The manager focuses on securities market instruments with a
portfolio tailored to the chance bearing capability of the capitalist.
IMPORTANCE OF THE PORTFOLIO MANAGEMENT:
 Emergence of institutional investment on behalf of people. variety of economic
establishments, mutual funds and alternative agencies strive against the task of
investment cash from retail investors on their behalf.
 Increase within the range and size of investable funds - an outsized proportion of
family savings flow into monetary assets.
 Inflated market volatility - Risk and reward parameters of economic assets square
measure perpetually dynamical because of frequent changes in government's
industrial and financial policies, economic uncertainty and instability.
 Inflated use of computers to method knowledge.
 social process of the sphere and increasing use of analytical ways (eg quantitative
techniques) within the investment call
 larger direct and indirect prices of failure or deficiency in achieving portfolio
objectives - inflated competition and larger capitalist management.

10
CRITERIA FOR PORTFOLIO DECISIONS:
 Portfolio management focuses on characteristic the collective importance of all
capitalist participations. the main target shifts from the choice of individual assets
to a lot of balanced target diversification and risk-return relationships of individual
assets inside the portfolio. Individual securities square measure solely vital to that
extent as they influence the portfolio. In short, all selections ought to target the
impact the choice can wear the portfolio of assets control.
 The portfolio strategy ought to be tailored to the individual wants and
characteristics of the portfolio holder.
 The competition for uncommon returns is nice. Therefore, care should be taken
once assessing the chance and come on securities. Imbalances don't last long and
you have got to act quickly to require advantage of extraordinary opportunities.
QUALITIES OF THE PORTFOLIO MANAGER:
1. SELLING SKILLS: He should be a decent merchandiser. He needs to convert the
purchasers of the special security. He needs to contend with stockbrokers on the stock
market. during this context, the selling skills facilitate him tons.
2. EXPERIENCE: The alternate behavior of the stock exchange typically repeats
history, therefore experiencing the various stages helps create rational choices. expertise
with differing types of securities, clients, market trends etc. makes an ideal skilled
manager.
PORTFOLIO BUILDING:
Portfolio choices for one capitalist area unit influenced by a range of things. people
disagree greatly in their circumstances, and thus a monetary program that's like minded
for one person is also inappropriate for one more. Ideally, a human portfolio ought to be
tailored to their individual wants.
Investors features:
An analysis of an individual's investment needs the examination of non-public
characteristics like age, health standing, personal habits, family responsibilities,
Investor experience:
Associate in Nursing capitalist contains a talent for monetary affairs, he might want to
speculate a lot of sharply in his investments.

11
 Attitude to risk:
A person's psychological state and status confirm their ability to require the danger.
differing types of securities carry completely different risks. the upper the danger, the
larger the prospect of a better profit or loss.
Liquidity Needs:
The need for liquidity varies greatly among individual investors. Investors with
regular financial gain from alternative sources might not be disturbed regarding
immediate liquidity. However, people World Health Organization square measure heavily
smitten by investments to satisfy their general or specific wants have to be compelled to
arrange the portfolio to satisfy their liquidity wants. Liquidity is obtained in 2 ways:
By allocating Associate in Nursing acceptable share of the portfolio to bank
deposits and
Time horizon:
In investment designing, the time horizon plays a very important role. it's terribly
completely different from individual to individual. individuals at their young age have an
extended time horizon for designing, they will balance and absorb the ups and downs of a
risky combination. folks that square measure recent have a shorter time horizon and
typically avoid volatile portfolios.
Financial goals of the individual:
In the initial part, the first goal of a private could also be to accumulate wealth
through regular monthly savings Associate in Nursing arrange an investment to realize
long-run capital gains.
Security of the client:
Protecting the rupee worth of the quality is of predominate importance to most
investors. the first investment will solely be repaid if the safety is sold-out on the market
with none major loss of import.
Income Support:
`Different investors have completely different current financial gain wants. If
someone depends on their capital gains for current consumption, the returns they
currently receive within the sort of dividends and interest payments are the first objective.

12
INVESTMENT RISK:
All investment selections revolve round the trade-off between risk and come. All
affordable investors need a substantial come on their investment. the flexibility to know,
live and properly manage investment risk is key to any intelligent capitalist or speculator.
Often, the safety investment risk is neglected and solely the rewards square measure
highlighted. Associate in Nursing capitalist World Health Organization doesn't totally
assess the risks of finance in securities can realize it tough to still attain positive results.
RISK AND EXPECTED RETURN:
There is a positive relationship between quantity} of risk and also the amount of
expected come, i.e. H. The bigger the danger, the bigger the expected come and also the
bigger the probability of great loss. One in all the toughest issues for Associate in Nursing
capitalist is assessing the best risk he will take.

 The chance is measured on the horizontal axis and will increase from left to right.
 The expected come back is measured on the vertical axis and will increase from
bottom to high.
 The road from zero to R (f) is named the comeback or risk less the investments
commonly related to bond certificate yields.
 The diagonal line from R (f) to E (r) illustrates the conception of expected come
back, that will increase with increasing risk.

13
Types of Risks:
The risk consists of 2 parts. you are
1. Systematic risk
2. Non-systematic risk
1. Systematic risk:
The systematic risk is caused by non-company factors which will not be influenced by the
corporate. The systematic risk affects the complete market. Factors that influence the
systematic risk are
 Economic conditions
 Political conditions
 Social science changes
The systematic risk is inevitable. The systematic risk is additional divided into 3 sorts.
You are
a) Market risk
b) Rate risk
c) Purchase power risk
a). Market risk
One would note that the majority stocks move higher because the securities market rises.
On the opposite hand, commonest shares can fall if the market falls sharply. it's
commonplace for stock costs to fall from time to time as company profits increase and the
other way around. The share value will fluctuate sharply at intervals a brief time, although
the result remains unchanged or comparatively stable.
b). Rate risk:
The rate risk is that the risk of a financial loss caused by the amendment within the rate
on recently issued securities.
c). Getting power risk:
The typical capitalist is trying to find associate investment that may provide him,
additionally to his original investment, a current financial gain and / or a financial gain.

14
2. Irregular risk:
A non-systematic risk is exclusive and peculiar to a corporation or trade. The method
during which funds are raised and repayments are related to risk. The monetary leverage
of firms, that is the leverage of firms, varies. of these factors influence the non-systematic
risk and contribute to the general variability of the comeback.
 Management unskillfulness
 Technological amendment within the production method
 Accessibility of raw materials
 Changes in client preference
 Work issues
The nature and extent of the on top of factors vary from trade to trade and from company
to company. They have to be analyzed singly for every trade and every company. A non-
as an example, it's higher to carry stocks of textile, banking and physics corporations than
to speculate all the money within the shares of the textile company.
Markowitz had abandoned the single-stock portfolio and introduced a diversification. The
single-stock portfolio would be desirable if the capitalist is completely bound that his
expectation of the best come would end up to be real. within the world of uncertainty,
most bad investors would rather come back to Markowitz than hold one share, as
diversification reduces risk.
ASSUMPTIONS:
 All investors wish the most come they will succeed with their investments.
 All investors have a similar expected one-period investment horizon.
 All investors have a standard goal before finance. this can be the dodging of risk
as a result of investors are risk disinclined.
 Investors base their investment selections on the expected come and also the
variance of the come on a possible investment.
 Good markets are needed (eg no taxes and no transition costs)
 The capitalist assumes that the upper or higher the come he achieves together with
his investments, the upper the danger issue encompassing him. On the contrary, if
the risks are low, a coffee come is expected.
 The capitalist will cut back his risk by adding investments to his portfolio.

15
  Associate degree capitalist ought to be able to generate a better come for every
risk level by "setting the economical securities".
 One merchandiser or purchaser can't influence the worth of a share. This
assumption is that the supposal of the superbly competitive market.
 Investors build selections supported expected returns, variance, and variance of all
pairs of securities.
 Within the decision-making section, unvaried expectations of investors are
assumed
 The capitalist might lend or borrow any quantity in danger less the rate of interest.
The risk-reduced rate of interest is that the rate of interest offered for Treasury
bills or government securities.
 Investors are risk disinclined. If you select between 2 otherwise identical
portfolios, select the one with the lower variance.
 Individual assets are infinitely particle, id est associate degree capitalist should
purchase a fraction of a stock if he therefore desires.
CAPITAL QUALITY EVALUATION MODEL (CAPM):
within the CAPM theory, the desired come on associate quality is during a linear
relationship to the asset's beta, id est non-diversifiable or systematic (ie market-related)
risk, because it eliminates non-market risk through diversification and systematic risk
measure is beta. Therefore, the link between associate quality come and its systematic risk
is expressed by the CAPM, that is additionally referred to as the safety-market line.
R = Rf Xf+ Rm(1- Xf)
Rp = Portfolio return
Xf =The proportion of funds invested in risk free assets
1- Xf = The proportion of funds invested in risky assets
Rf = Risk free rate of return
Rm = Return on risky assets
The formula are often wont to calculate the expected returns for various things,
e.g. for instance, combination unhazardous with risky assets, investment solely in risky
assets, and mixing borrowing with risky assets.

16
 THE CONCEPT:
According to CAPM, all investors solely hold the market portfolio and risk fewer
securities. The market portfolio consists of all the shares of the market. every quality is
command in proportion to its to the whole value of all risky assets.
For example, if the share of Wipro trade represents 15 August 1945 of all risky
assets, the market portfolio of the individual capitalist contains 15 August 1945 of the
shares of Wipro trade. At this point, the capitalist has the choice of disposal or borrowing
any quantity of cash in danger, less the rate of interest.
EVALUATION OF THE PORTFOLIO:
Once the portfolio has been elite, it should be regularly reviewed over a amount of your
time, so reviewed supported the investor's goals. The diligence in making the portfolio
ought to be extended to reviewing and rewriting the portfolio. Fluctuations available costs
cause investors important gains or losses.
The capitalist ought to have the experience and experience to revise the portfolio. The
portfolio management method needs frequent changes within the composition of stocks
and bonds. For securities, the sort of securities to be control ought to be adjusted in step
with the portfolio policy.
An capitalist buys shares in step with his goals and his risk-return framework. the costs of
the shares he buys fluctuate, with every share having its own fluctuation cycle. These
value fluctuations could also be associated with economic activity in a very country or to
different ever-changing market conditions.
FORMULA PLANS:
The foremost ordinarily used formula plans are
I. Average rupee arrange
ii. Arrange for constant rupees
iii. Arrange with constant quantitative relation
iv. Arrange with variable quantitative relation
ADVANTAGES:
 the principles and laws are rigorous and facilitate to beat human emotions.
 The capitalist will create higher profits by accretive the plans.
 The procedure depends on the goals of the capitalist

17
DISADVANTAGES:
 It's rigorous and not versatile with the inherent downside of adaptation.
 notwithstanding the capitalist accepts the formula set up, he should build a
forecast. Market forecasts facilitate him to spot the most effective stocks.
1. OVERVIEW:
The most purpose of the study is that the examination adopted the policy for decision
making in the area of portfolio management
2. SCOPE:
Bear the presence study Examination of the decision-making procedures Portfolio
management Environment, choice of securities, Weights of varied securities and
Earn a portfolio.
3. RESULTS:
The trend of the stock exchange, securities in India has shown associate increasing trend
average investment in such securities Increase by 153.47% annually compared to the
study Period. regardless of the trend of finance in Stock market, securities in Asian nation
moreover Outside Asian nation, Investment enclose has shown is 154.77% each year
throughout the study amount.
PORTFOLIO MANAGEMENT WITH CAPM
1. OVERVIEW:
Portfolio analysis to live this real risk and the come of securities and therefore the
calculation of the Expected come of securities with Security market line to match
expected Return with actual come to help the capitalist in make a rational investment
call Securities to shop for or sell via the stock exchange Line that ought to counsel the
most effective portfolio Mix.
2. SCOPE:
The scope of the study is restricted to the present use of Safety market line as a tool of
selection Security and recommendation to investors regarding the best portfolio
combine.

18
 3. RESULTS:
There's a big distinction between the Expected come and actual come. The next Step
is that the identification of securities, among that Value if the expected come is bigger
than Actual returns may be ascertained undervalued Securities like Cipla, Dr. Reddy
Labs, wipro etc., wipro is linear since Weights (X) area unit the variables
INVESTMENT:
An investment is outlined as associate degree activity within which funds are presently
being engaged in no matter money type, with the expectation of generating further returns
within the future. The expectations entail a likelihood that the quantum of comeback will
vary from a minimum to a most. This risk of adjusting the particular come back is named
investment risk. Thus, each investment involves come back and risk.
Investment is associate degree activity that's done by those that have savings. Savings is
outlined as a surplus of financial gain over expenditures. associate degree capitalist earns
/ expects further cost from the sort of investment, which can be within the style of money
assets.
The 3 most significant characteristics of a money plus are:
• come back - the potential come back on associate degree plus.
• Risk - the variability of the returns of the plus is that the probability that its price can
rise / fall.
• Liquidity - the benefit with that associate degree plus is reborn into money.
Investors tend to appear at these 3 characteristics whereas picking their individual
preference patterns for investment. every money plus encompasses a specific level for
every of those properties.
INVESTMENT OPPORTUNITIES
In India, there are a spread of investment opportunities for savers. a number of them are
marketable and liquid, whereas others don't seem to be marketable. a number of them are
terribly risky whereas others are virtually less risky.
Investment opportunities will roughly be classified below the subsequent title.
1. company papers
2. Shares.
3. preference shares.

19
 4. Bonds / Bonds.
5. Derivatives.
6. Others.
Corporate Bonds
Private sector personal corporations issue company securities. These embrace shares,
preferred shares and bonds. Equities have variable dividend entitlements and so belong to
the risky and high-yield class. preferred shares and debt securities have mounted returns
with lower risk. The classification of company papers which will be hand-picked as
investment opportunities is delineate as follows:

Equity Preference Bonds Warrants Derivatives

Shares shares

20
 CHAPTER-III
INDUSTRY PROFILE
&
COMPANY PROFILE

21
The Indian market has developed well in 2018-19 within the Asian market and therefore
the world market. Sensex has gained over 6 June 1944 over this era. National stocks are
higher price than international stocks. The Indian securities market was among the most
effective performers worldwide in 2015/16, with the city exchange (BSE) Sensex up
twenty ninth from twenty one,140 on January one to twenty seven,312 on Gregorian
calendar month nineteenth. Most market participants expect this nice run to continue
within the future thanks to reforms, massive inflows of foreign funds, revival of the
producing sector, improvement of the political economy state of affairs and increase in
company profit growth.
Attractive reviews
Despite the robust increase, the valuation of the Indian securities market continues to be
engaging. On Gregorian calendar month twelve, the Sensex listed at a ratio of eighteen.5,
slightly below the five-year average of eighteen.77. One reason for this can be that the
come back on equity of bovine spongiform encephalitis two hundred firms is bottoming
out. "The revival in growth of Indian firms, that are through a tough amount over the past
5 years, remains in its infancy, with fifty firms expected to grow 16-17% next year.
Equities that answer rate changes and hand-picked debt securities programs ar doubtless
to be the winners in 2015, with the depository financial institution of India doubtless to
ease its financial policy.
Fund managers same the economic outlook has improved, however the New Year might
create it tougher for equity investors to form cash, as valuations of the many stocks once
the rally in 2014 are wealthy. considerations concerning the U.S. rate hike and weak
world crude costs can also hold investors.
India is one in every of the foremost powerful rising markets in 2014. So far, the Sensex
has exaggerated in 2014 by thirty fourth. tinyer firms did even better: the bovine
spongiform encephalitis middle Cap Index rose fifty six and therefore the bovine
spongiform encephalitis Small Cap Index rose seventy fifth.
After quite a decade of outperforming the equity markets, gold has been declining for 2
straight years compared to equities. This shows Associate in Nursing analysis of his value
movements.

22
"The underperformance of gold was in the main thanks to USA dollar-denominated costs,
that were doubtless to slim in recent months, combined with FII investment in Indian
equities.
"This movement conjointly hit world markets as gold lost shine in 2013 and markets
came back with a bang," aforementioned Jayant Manglik, President Retail Distribution,
Religare Securities.
"As always, gold and stock costs follow opposite trends, and this year it had been no
totally different, except that they each modified direction," he said.
Improving the worldwide economy has brought risk appetence back to retail investors,
and this has spent liquidity from safe havens, like gold, that has crystal rectifier to
Associate in Nursing underperformance, Associate in Nursing skilled aforementioned.
In 2012, the Sensex had gained over twenty five p.c, that was nearly double the gold gain
of around twelve.95 percent. The appreciation of silver was concerning twelve.84 per last
year.
Hiren Dhakan, Associate Fund Manager of Bonanza Portfolio, said, "The markets showed
specific strength from July to August 2013, once tally took some powerful measures to
regulate the sharp call rupee."
"When the USA central bank showed signs that it may scale back its recovery set up
within the face of the up economy, most risk assets, as well as Indian equities, created a
fast correction, however the USA central bank has pledged that planned and staggered
retrenchment has taken hold Impulse has once more verified to be a catalyst for the
markets. "
"External factors touching Indian stocks seem to be negative within the half of 2014,
because the USA dollar remained robust and favorable within the half of the year, with
elections at national and international level Factors favor this "He aforementioned the
Indian markets ought to progress 2014 with double-digit share growth."
The mid-cap and capitalization indices of the stock exchange phase fell by around ten p.c
and sixteen p.c, severally, in 2013.
Foreign institutional investors bought quite Rs.1.1 billion (nearly $ twenty billion) value
of shares by one9 Gregorian calendar month. In 2012, they'd wired in one.28 billion
rupees ($ twenty four.37 billion).

23
Indian cotton and jute textiles, steel, sugar, paper and flour factories and every one
businesses typically enjoyed fantastic prosperity because of the primary warfare.
In 1920, the then reticent town of Madras fully fledged the joys of a stock market
operational below the name of "The Madras Stock Exchange" with one hundred members
in its inside. However, because the boom subsided, the amount of members shrivelled
from one hundred to three by 1923, then it disappeared.
to the present finish, varied new associations were supported and exchanges were
established altogether elements of the country.
The province stock market restricted (1940), the Nagpur stock market restricted (1940)
and therefore the Hyderabad stock market restricted (1944) were supported.
Two exchanges - urban center|city|metropolis|urban center}|city|metropolis|urban
center}|city|metropolis|urban center} Stock and Share Brokers' Association restricted and
Delhi Stocks and Shares Exchange restricted - were launched in Delhi and later
incorporate into Delhi Stock Exchnage Association restricted in June 1947.
Scenario once independence
Most stock exchanges suffered nearly occultation throughout Depression. Lahore
Exchange was closed throughout the partition of the country and later emigrated to urban
center|city|metropolis|urban center} and incorporated with the Delhi exchange.
a number of the members of the opposite associations had to be approved by the
recognized stock exchanges on advantageous terms, however below the principle of
unified management, of these pseudo-exchanges were now not recognized by the Indian
government and later on ceased to operate. for instance, there have been eight recognized
exchanges in Asian nation at the start of the sixties (see above). the amount has remained
just about unchanged for nearly 20 years. However, several stock exchanges were
supported within the 1980s: the cochin china exchange (1980), the province exchange
Association restricted (1982 in Kanpur) and also the Pune exchange restricted (1982), the
Ludhiana exchange Association restricted (1983), Gauhati exchange restricted (1984),
Kanara exchange restricted (in Mangalore, 1985), Magadh exchange Association (in
Patna, 1986), Jaipur exchange restricted (1989), Bhubaneswar exchange Association
restricted (1989), Saurashtra tannic acid exchange restricted (Rajkot, 1989), Vadodara
exchange restricted (Baroda, 1990) and recently established exchanges - Coimbatore and

24
Meerut. There square measure presently a complete of twenty one recognized exchanges
in Asian nation, with the exception of {india|India|Republic of Asian nation|Bharat|Asian
country|Asian nation} restricted (OTCEI) and National Stock Exchanges of India
restricted (NSEIL).
OVER-THE-COUNTER EXCHANGE OF REPUBLIC OF INDIA (OTCEI)
The traditional commerce mechanism on the Indian stock markets gave thanks to several
purposeful inefficiencies, like lack of liquidity, lack of transparency, excessive settlement
deadlines and Benami transactions, that hit retail investors to an oversized extent.
to higher serve investors, the country's initial ringless electronic securities market,
OTCEI, was based in 1992 by the leading money establishments within the country -
investment company of Republic of India, India's Industrial Credit and nondepository
financial institution, SBI Capital's Industrial Development Bank of Republic of India
Markets, the economic Finance Corporation in Republic of India, General Insurance
Corporation and its subsidiaries and CanBank money Services. commerce in OTCEI is
via the centers distributed throughout the country. Securities listed on OTCEI ar classified
in:
• Listed Securities - The stocks and notes of unlisted listed firms could also be bought or
oversubscribed at any unlisted counter across the country and will not be listed elsewhere
• Eligible Securities - sure stocks and notes listed on different stock exchanges and units
of investment could also be listed

25
26
27
28
29
Objectives of Indian coming up with
The Planning Commission has established the subsequent principles of the policy:
• build associate assessment of the country's physical, money and human resources, as
well as technical workers, and examine the probabilities of accelerating those resources,
that prove inadequate in relevancy national needs.
• Develop an idea for the foremost effective and balanced use of the country's resources.
• once setting the priorities, determine the phases during which the arrange ought to run,
and counsel distribution resources to complete every part.
• determine the factors that delay economic development and determine the conditions
that ought to be set for the booming implementation of the arrange, given the present
social and political state of affairs.
• to see the kind of machine, this can be necessary to confirm the booming
implementation of every arrange all told its aspects.
• Evaluate, from time to time, the progress created within the implementation of every
part of the arrange and suggest the changes to policies and measures which will prove
necessary in such evaluations.
• Build interim or auxiliary recommendations that seem acceptable for facilitating the
performance of the tasks entrusted to that, or taking under consideration the economic
context, current policies, measures and development programs; or examining specific
problems which will be submitted to the central government or state governments for
consultation.

30
 COMPANY PROFILE
Background:
Karvy offers mercantilism on a large platform: National securities market and Mumbai
securities market. a lot of significantly, mercantilism is as safe as potential by taking into
consideration and designing many risk factors. you may be supported during this task by
thorough analysis, constant feedback and sound recommendation. The highly-qualified
analysis team of technical analysts and basic specialists ensures results-oriented info on
market trends, market analyzes and market forecasts. This very important info is provided
to our customers through daily reports that are delivered 3 times every day as an eternal
feedback. The pre-session report, that forecasts the market state of affairs for the day, the
mid-session report, that is scheduled to hit mealtime, wherever the market forecast is
given for the rest of the day, and therefore the post-session Report, the ultimate report for
the day on that the market and therefore the report itself are reviewed.
To supplement this supply of data, they publish a monthly magazine "Karvy The Fin
polis", that analyzes the most recent stock exchange trends and considers the assorted
investment choices and therefore the merchandise out there on the market below the title
"Weekly Report" "Karvy Bazaar Baatein" holds Keep you up thus far on the immediate
trends on the stock exchange. additionally, the particular trade reports offer
comprehensive info on varied industries. Additionally, the corporate offers specialized
portfolio analysis packages with daily technical recommendation for winning portfolio
management and bespoken consolatory services to assist the correct money steps that are
specific to your portfolio.
Stock Booking's services square measure networked throughout Asian country, and also
the range of our commerce terminals offers opportunities to broker retail stock. Its
services progressively supply customer-oriented comfort, that we provide with equal
commitment and equal competency to a large vary of investors, whether or not on the net
or otherwise.
However, this success isn't the final word goal of the corporate, however just a platform
for introducing additional quality services to produce individuals with the newest in
convenient and customer-friendly warehouse management.

31
Over the years, they need ensured that their customers' trust is that the greatest come
back. Factors like success within the electronic custody business have helped to increase
the tradition of trust. As a result, their retail client base grew in no time.
To any strengthen the capitalist, they need created serious efforts to confirm that their
analysis calls square measure consistently distributed to any or all purchasers of
stockbrokers through varied delivery channels like e-mail, chat, SMS, phone calls, etc.
Their push to transfer commodities has been groundbreaking and that they square
measure remodeling existing artifact traders as a commerce and risk-taking mechanism
into the additional organized thought commerce in artifact futures.
In the future, the main focus are on the rising corporations. to attain this goal, they need
inflated their manpower and revitalized their cognitive content with a stronger concentrate
on futures and choices yet because the commodities business.
Deposited Participants
With the age within the money services business, Karvy appeared in 1998 as associate
electronic guardian, registered with National Securities installation Ltd (NSDL) and
Central Securities installation Ltd (CSDL). Karvy set standards that created it potential
for the capitalist to profit from additional advertising Paperless commerce throughout the
country and also the prime three installation participants within the country in terms of
client service.
They offer a broad commerce platform with twin membership in NSDL and CDSL and ar
a strong medium for commerce and process dematerialized stocks. They've found out live
DPMs, web access to accounts, and an easier dealing method to produce a lot of
convenience for each home and business. A team of execs and also the latest
technological power, used solely for the Demat division, together with technological
enhancements like SPEED-e, guarantee quick response times and perfect delivery. A
broad national network makes its potency accessible to any or all.
Karvy Consultants restricted was based in 1981 with the vision and business of atiny low
cluster of accountants. Initially, the automation of consulting and money accounting
began in 1985 and created the entry into the register and stock accounting. Since then, the
corporate has used its expertise and superior power to maneuver from strength to strength
... to enhance its services and deliver services.

32
New, innovative, diversifying and in-house became one in every of the foremost
integrated money services company in Republic of India developed.
Today, Karvy has access to legion Indian stockholders aboard corporate, banks, money
establishments and regulators. Over the past decade and a 0.5, Karvy has become a real
link between business, finance and other people. In Gregorian calendar month 1998,
Karvy became the primary depositary participant in state. Karvy is associate ISO 9002
company associated has developed into an integrated money services company through its
commitment to quality and reach in retail.
An overview:
KARVY may be a leading integrated money services firm and the highest five within the
country in all business areas. the corporate serves quite sixteen million individual
capitalists in varied capacities and provides investor services to over three hundred
corporations, together with UN agency company Republic of India. KARVY covers the
complete vary of economic services, like stockbrokers, custodians, money merchandise
distribution - mutual funds, bonds, time deposits, stocks, insurance brokers, artefact
brokers, personal money informatory services, bourgeois banking , equity placement,
IPOs, among others. Karvy includes a skilled management team and is among the
simplest in technology, operations and analysis in varied business segments.
Today, Karvy serves quite vi.5 lakhs of client accounts in additional than 250 cities in
Republic of India, serves quite eighty five million shareholders in 7500 company
customers and is gift in additional than fifteen countries on five continents. All of Karvy's
services also are underpinned by strict quality aspects that have helped Karvy become
certified by DNV as associate ISO 9002 company.
RESULTS:
 Among the highest five stockbrokers in Asian country (4% of NSE volume)
 India's No. one Registrar & Securities Transfer Agents
 Among the highest three facility participants
 Largest network of branches and business partners
 ISO 9001: 2000 certified operation by DNV
 Among the highest ten investment bankers
 Largest dealer of monetary merchandise

33
  Rated by MIS Asia together of the fifty most successful IT applications in Asian
country
 IT-supported operation
 Initial ISO 9002 certified registrars in Asian country
 Classified by MARG as "the most loved Chancellor"
 Biggest fundraising in step with PRIME information
 Initial facility participant from province.
 Over five hundred public problems altered as registrars.
 Handling the Reliance account, that accounts for nearly ten million account
holders.
Business activities:
• Factor services
• Distribution of monetary merchandise (investments & credit products)
• Services for facility participants
• IT-enabled services
• Personal monetary recommendation
• Personal client cluster
• Debt services
• Insurance and businessperson Banking
• Fund services
• Company stockholder Services
• Different world services
In addition, they {provide} specialized portfolio analysis packages that provide daily
technical recommendation on every of the elements for successful portfolio management
and custom-made consolatory services to assist purchasers build the proper monetary
steps that area unit specific to their portfolio. they're perpetually strain to place along for
every client the proper investment portfolio in step with individual wants and budget
concerns.

34
Karvy Consultants restricted trades in registrar and investment services. Karvy is one in
every of the primary participants to be registered with NSDL (National Securities deposit
Limited), the country's initial keeper and later on with CDSL (Central deposit Services
Limited).

Karvy Stock Broking could be a member of the National securities market (NSE), the
Mumbai securities market (BSE) and also the Hyderabad securities market (HSE). The
services offered are multi-dimensional and embrace many areas: analysis of the most
recent securities market trends and an in depth explore the varied investment
opportunities and product out there on the market. additionally, they provide special
portfolio analysis packages.

The paradigm shift from pure marketing to knowledge-based marketing is driving

the business these days. The monthly Finapolis magazine provides up-to-date market
intelligence on market trends, investment choices, opinions, etc. this permits investors to
base each money step rational thinking and prudent analysis, and on their thanks to wealth
creation.

Karvy is recognized because the country's leading businessperson banker, Karvy is

registered with SEBI as a class one businessperson banker. This name has been designed
by investing opportunities in mergers, mergers and acquisitions and company
restructuring.

35
Karvy is related to the world's largest agency, the leading Australian company laptop
Share restricted. It's achieved a grip of huge strength as a supplier of comprehensive
transfer agency services to AMCs, distributors and investors. additionally to the whole
back-office process, it additionally establishes the affiliation between numerous assets
and also the capitalist.

Karvy international Services restricted covers the banking, finance and insurance (BFIS), retail
and commercialism, leisure and amusement, energy and utilities and care sectors.

Karvy Comtrade trades all commodities and product of agricultural and mineral origin,
that embrace moneymaking commodities like gold and silver also as standard
commodities like oil, legumes and cotton, solely to a restricted extent via a well-
organized mercantilism platform.

36
 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

37
 CALCULATION OF RETURN OF CIPLA
Beginning price Ending price Dividend
Year (Rs) (Rs) (Rs)
2013-14 898.00 1371.05 10.00
2014-15 1334.00 317.8 3.00
2015-16 320.00 448 3.50
2016-17 447.95 251.35 2.00
2017-18 251.5 212.65 2.00

Dividend  (Ending Pr ice  Beginning Pr ice)

Re turn  *100
Beginning Pr ice

38
 CIPLA RETURNS

Years 2013-14 2014-15 2015-16 2016-17 2017-18

Returns 54.23% -75.95% 41.09% -43.44% -14.65%

In the above analysis the return of CIPLA in 2013-14, 2014-15, 2015-16, 2016-17,
2017-18, is 54.23%, -75.95%,41.09%, -43.44%, -14.65% respectively.
Based on the on top of analysis, we are able to say that the returns of CIPLA
fluctuate.

39
 CALCULATION OF RETURN OF RANBAXY

Year Beginning Ending

Dividend(Rs)
price(Rs) price(Rs)
2013-14 598.45 1095.25 15.00
2014-15 1109.00 1251.15 17.00
2015-16 1268 362.75 14.50
2016-17 363 391.8 8.50
2017-18 391 425.5 8.50

Dividend  (Ending Pr ice  Beginning Pr ice)

Re turn  *100
Beginning Pr ice

40
 RANBAXY RETURNS

Years 2013-14 2014-15 2015-16 2016-17 2017-18

Returns 85.52% 14.35% -70.24% 10.27% 10.99%

In the above analysis the return of RANBAXY in 2013-14, 2014-15, 2015-16, 2016-17,

2017-18, is 85.52%, 14.35%,-70.24%, 10.27%, 10.99% respectively.

Based on the higher than analysis, area unit able to} say that RANBAXY's returns decline

in 2015-16 and are negative.

41
 CALCULATION OF RETURN OF
MAHENDRA&MAHENDRA

Beginning price Ending price

Year (Rs.) (Rs.)
Dividend (Rs.)

2013-14 113.45 388.8 5.50

2014-15 392.55 545.45 9.00
2015-16 547.10 511.6 13.00
2016-17 514.80 908.45 10.00
2017-18 913.00 861.95 11.50

Dividend  (Ending Pr ice  Beginning Pr ice)

Re turn  *100
Beginning Pr ice

42
 MAHENDRA & MAHENDRA RETURNS

Years 2013-14 2014-15 2015-16 2016-17 2017-18

Returns 247.55% 41.24% -4.11% 78.41% -4.3%

In the above analysis the return of MAHENDRA & MAHENDRA in 2013-14, 2014-15,
2015-16, 2016-17, 2017-18, is 247.55, 41.24%, -4.11%, 78.41%, -4.3% respectively.
Based on the on top of analysis, we are able to say that the returns of MAHENDRA &
MAHENDRA fluctuate over the amount.

43
 CALCULATION OF RETURN OF
BAJAJ AUTO

Beginning price Ending price Dividend

Year
(Rs) (Rs) (Rs)
2013-14 502 1136.3 14.00
2014-15 1125.05 1131.2 25.00
2015-16 1149.00 2001.1 25.00
2016-17 2016.00 2619.15 40.00
2017-18 2648.65 2627.9 40.00

Dividend  (Ending Pr ice  Beginning Pr ice)

Re turn  *100
Beginning Pr ice

44
 BAJAJ AUTO RETURNS

Years 2013-14 2014-15 2015-16 2016-17 2017-18

Returns 129.14% 2.77% 76.34% 31.9% 0.726%

In the above analysis the return of BAJAJ AUTO in 2013-14, 2014-15, 2015-16, 2016-17,
2017-18, is 129.14, 2.77%, 76.34%, 31.9%, 0.726% respectively.
From the on top of analysis, we will say that BAJAJ car returns fluctuate and perform
very well or very poorly.

45
 CALCULATION OF STANDARD DEVIATION OF
CIPLA

Year Return (R) R RR R  R 2

2013-14 54.23 -7.744 61.974 3840

2014-15 -75.95 -7.744 -68.206 4652
2015-16 41.09 -7.744 48.834 2384
2016-17 -43.44 -7.744 -35.696 1274
2017-18 -14.65 -7.744 -6.906 47.692
-38.72 12197.692

R
Average Return = N= number of years
N
 38.72
=  7.744
5

Variance =
1
N 1

RR 
2

S tan dard Deviation  Variance 




= 12197.692

= 55.22

46
 CALCULATION OF STANDARD DEVIATION OF
RANBAXY

Year Return (R) R RR R  R 2

2013-14 85.52 10.18 75.34 5676

2014-15 14.35 10.18 4.17 17.39
2015-16 -70.24 10.18 -80.42 6467
2016-17 10.27 10.18 0.09 0.0081
2017-18 10.99 10.18 0.81 0.6561
50.89 12161

R
Average Return = N= number of years
N
50.89
=  10.18
5

Variance =
1
N 1

RR
2


S tan dard Deviation  Variance 




= 12161

= 55.13

47
 CALCULATION OF STANDARD DEVIATION OF
MAHENDRA&MAHENDRA

Year Return (R) R RR R  R 2

2013-14 247.45 71.758 175.79 30902.8

2014-15 41.24 71.758 -30.52 931.47
2015-16 -4.11 71.758 -75.868 5755.95
2016-17 78.41 71.758 6.652 44.25
2017-18 -4.3 71.758 -76.058 5784.82
358.79 43419.3

R
Average Return = N= number of years
N
358.79
=  71.758
5

Variance = 1
N 1

RR
2


S tan dard Deviation  Variance 




= 43419.3

= 104.186

48
 CALCULATION OF STANDARD DEVIATION OF
BAJAJ AUTO

Year Return (R) R RR R  R 2

2013-14 129.14 48.175 80.965 6555.3

2014-15 2.77 48.175 -45.405 2061.6
2015-16 76.34 48.175 28.165 793.3
2016-17 31.9 48.175 -16.275 264.9
2017-18 0.726 48.175 -47.449 2251.4
240.876 11926.5

R
Average Return = N= number of years
N

240.876
=  48.175
5

Variance =
1
N 1
RR
2
 

S tan dard Deviation  Variance 




= 11926.5

= 54.6

49
 CORRELATION BETWEEN CIPLA & RANBAXY

DEVIATION OF DEVIATION OF COMBINED DEVIATION

CIPLA RANBAXY (RCIPLA - R CIPLA) (RRBX-
Year
(RCIPLA - R CIPLA) (RRBX- R RBX) R RBX)
2013-14 61.974 75.34 4669.12
2014-15 -68.206 4.17 -284.42
2015-16 48.834 -80.42 -3927.23
2016-17 -35.696 0.09 -3.213
2017-18 -6.906 0.81 -5.59
448.667

Covariance of CIPLA& RANBAXY =

1
N
 (R CIPLA - RCIPLA ) (R RBX - R RBX )

1
= (448.667)
5
= 89.7334

Correlation – Coefficient CIPLA& RANBAXY =

COV
CIPLA, RBX   CIPLA,RBX
CIPLA RBX 


89.7334
=
(55.22)(55.13)

= 0.0295

50
 CORRELATION BETWEEN BAJAJ AUTO AND
MAHENDRA&MAHENDRA

Deviation of Deviation Of
COMBINED DEVIATION
Bajaj Auto Mahendra & Mahendra
Year (RM&M - R M&M) (RBJ - R BJ) (RM&M - R M&M)
(RBJ - R BJ)
2013-14 80.965 175.79 14232.84
2014-15 -45.405 -30.52 1385.76
2015-16 28.165 -75.868 -1909.22
2016-17 -16.275 6.652 -108.26
2017-18 -47.449 -76.058 3608.87
17210

Covariance of Bajaj Auto and Mahendra & Mahendra =

1
N
 (R - R BJ ) (R
BJ M&M - R M&M )

1
= (17210)
5

= 3442
Correlation – Coefficient Bajaj Auto and Mahendra & Mahendra =
COV
BJ , M &M   BJ ,M &M
BJ M &M 


3442
=
(54.60)(104.586)

= 0.605

51
 CORRELATION BETWEEN CIPLA&BAJAJ

DEVIATION OF DEVIATION OF
COMBINED DEVIATION
CIPLA BAJAJ
Year (RCIPLA- R CIPLA) (RCIPLA- R CIPLA) (RBJ - R BJ)
(RBJ - R BJ)
2013-14 61.974 80.965 5017.72
2014-15 -68.206 -45.405 3096.90
2015-16 48.834 28.165 1375.41
2016-17 -35.696 -16.275 580.95
2017-18 -6.906 -47.449 327.68
10398.70

Covariance of CIPLA& BAJAJ=

1
N
 (R CIPLA - RCIPLA ) (R BJ - R BJ )

1
= (10398.70)
5
= 2079.74

Correlation – Coefficient CIPLA& BAJAJ =

COV
 CIPLA, BJ   CIPLA,BJ
CIPLA  BJ 


2079.74
=
(55.22)(54.60)

= 0.690

52
 STANDARD DEVIATION

COMPANY STANDARD DEVIATION

CIPLA 55.22
RANBAXY 55.13
M&M 104.186
BAJAJ AUTO 54.60

Standard Deviation

The analysis higher than offers the quality deviation for CIPLA, RANBAXY,
MAHENDRA & MAHENDRA, BAJAJ AUTO, that is fifty five,22,55,13,104,186,54,60
SD.

53
 AVERAGE RETURN OF COMPANIES

COMPANY AVERAGE
CIPLA -7.744
RANBAXY 10.18
M&M 71.758
BAJAJ AUTO 48.175

Average

The chart higher than shows the common returns of CIPLA, RANBAXY, MAHENDRA
& MAHENDRA, BAJAJ motorcar with average returns of -7.744, 10.18, 71.758 and
48.175, severally. M & M have the best average come back of seventy one,758.

54
 CORRELATION COEFFICIENT

COMPANY 
BAJAJAUTO&MAHINDRA 0.605
CIPLA&RANBAXY 0.0295
CIPLA&BAJAJ AUTO 0.690

Correlation Coefficient

The diagram on top of shows the correlation of various mixtures. BAJAJ motor vehicle
and MAHENDRA & MAHENDRA have zero.605, CIPLA and RANBAXY have
zero.0295, CIPLA and BAJAJ motor vehicle have zero.690. the best correlation exists
between CIPLA and BAJAJ motor vehicle.

55
 PORTFOLIO WEIGHTS:

CIPLA & RANBAXY

 2
 ( )( )
RBX CIPLA,RBX RBX CIPLA
 CIPLA
2

RBX
2
 2CIPLA,RBX ( RBX )(

CIPLA )

XRBX = 1 – XCIPLA

 CIPLA = 55.22

 RBX = 55.13
CIPLA,RBX = 0.0295
(55.13) 2 - 0.0295 (55.22) (55.13)
XCIPLA =
(55.22) 2 + (55.13) 2 - 2 (0.0295) (55.22) (55.13)

XCIPLA = 0.49916
XRBX = 1 – XCIPLA
XCIPLA = 0.49916
XRBX = 0.50084

56
BAJAJ AUTO and MAHENDRA & MAHENDRA:
 2
 ( )( )
  M &M BJ ,M &M M &M BJ
 BJ 2 M &M 2  2BJ ,M &M (M &M )( BJ )
XM&M = 1 – XCIPLA

 BJ = 54.60

 M &M = 104.186

BJ ,M &M = 0.605

(104.19)2 - 0.605 (54.60) (104.19)
XBJ =
(54.60)2 + (104.19)2 - 2 (0.605) (54.60) (104.19)

X BJ = 1.0662
X M&M = 1 – XBJ
X BJ = 1.0662
X M&M = -0.0662

57
 PORTFOLIO RETURN & PORTFOLIO RISK

Correlatio
n Portfolio Portfolo
Company Company
Two Portfolios Return
Coefficient Xa Xb Risk σp
ab Rp
CIPLA&
RANBAXY 0.0295 0.49916 0.50084 1.2335 39.58
BAJAJ AUTO
and M&M 0.605 1.0662 -0.0662 46.614 54.14

PORTFOLIO RETURN
RP  Ra X a  R b Xb

PORTFOLIO RISK

 P       

58
 PORTFOLIO RETURN (RP)

CIPLA&RANBAXY 1.233
BAJAJ AUTO and 46.614
M&M

Portfolio Return RP

BAJAJ and MAHENDRA & MAHENDRA have a portfolio come of 46.614, that is
over CIPLA and RANBAXY of 1.233.

59
 PORTFOLIO RISK

CIPLA&RANBAXI 39.58
BAJAJ and M&M 54.14

Portfolio Risk

The portfolio risk of BAJAJ and M & M is 54.14. this is often quite the portfolio risk
of CIPLA and RANBAXY of 39.58.

60
CHAPTER-V
FINDINGS
SUGGESSIONS
CONCLUSION

61
TEST OF HYPOTHESIS:

Return and Risk of different selected combinations:

S.no Combination Return Risk

1. CIPLA&RANBAXY 1.233 39.58

2. BAJAJ AUTO and M&M 46.614 54.14

Null hypothesis:
The on top of analysis doesn't show that the chance and come of the chosen combos don't
amendment, therefore the null hypothesis is rejected.
Alternative hypothesis:
The on top of analysis shows that the chance and reward of the chosen combos
amendment, therefore the different hypothesis is accepted.

62
 FINDINGS

CIPLA & RANBAXI, BAJAJ car and MAHENDRA & MAHENDRA:

1. The mix of CIPLA And RANBAXI provides an investment of zero.49916 and
zero.50084 severally for CIPLA and RANBAXI.
2. Supported the quality deviations. the quality deviation for CIPLA is fifty five.22 and
for RANBAXI fifty five.13.
3. Therefore, investors ought to invest their funds a lot of heavily in RANBAXI compared
to CIPLA because the risk related to RANBAXI is less than CIPLA because the variance
of RANBAXI is less than that of CIPLA.
4. The mix of BAJAJ car And MAHENDRA & MAHENDRA leads to an investment of
one.0662 and -0.0662 for BAJAJ car and MAHENDRA & MAHENDRA, severally.
5. Supported the quality deviations. the quality deviation for MAHENDRA &
MAHENDRA is 104.186 and for BAJAJ car fifty four.60.
6. Therefore, the capitalist ought to invest his funds a lot of in BAJAJ car compared to
MAHENDRA & MAHENDRA, because the risk related to BAJAJ car is less than that of
MAHENDRA & MAHENDRA, because the variance of BAJAJ car is less than that of
MAHENDRA & MAHENDRA.

63
 SUGGESTIONS
 The capitalist might earn if they come on the portfolio of equities and bonds is
spoken as a heterogenous portfolio. The portfolio construction would thus be
directed to 3 major via. property, temporal arrangement and diversification.
 within the case of portfolio management, negatively related assets area unit the
foremost profitable. The correlation between MAHENDRA & MAHENDRA and
BAJAJ automotive vehicle is negatively related , which suggests that each
portfolio combos can have a decent profit position within the future.
 Investors will invest their cash over the future as a result of each combos area unit
the foremost applicable portfolios.
 an affordable capitalist would perpetually check his elite portfolio for average
come and risk.
 Diversification is additionally to be thought of.
 the mixture of risk aversion, yield maximization and diversification is that the best
tool for profit.

64
 CONCLUSION

The standard deviation of Ranbaxy is lower, thus it might be informed invest in Ranbaxy
instead of Cipla as a part of the portfolio. the quality deviation of Bajaj automotive
vehicle is lower, thus it might be affordable to speculate in Bajaj automotive vehicle and
not in Mahendra & Mahendra as a part of the portfolio.
For absolutely related securities or equities, risk are often decreased . For negatively
related securities, the danger are often reduced to zero (this is that the risk of the
company), however the market risk for the protection remains a similar or the share
within the portfolio.

65
 APPENDICES

Implementation of study:
For implementing the study, 9 security’s or scripts constituting the Sensex market are
selected From Economic Times and Financial Express.
In order to know how the risk of the stock or script, we use the formula, which is given
below:

Variance =
1
N 1
 RR2


S tan dard Deviation  



 2
where R  R = square of difference between sample and mean
N = number of sample observed
After that ,we need to compare the stocks or scripts of two companies with each other by
using the formula or correlation coefficient as given below.
1
Covariance of A & B =
N
 (R A - R B ) (RB - R B )

Correlation – Coefficient A and B=

COV
 A, B  A,B

 A B 
  

Where (RA - RB ) (RB - RB ) = Combined deviation of A&B

A B  Standard Deviation of A&B

COVAB = Covariance between A&B N= number of observations.
The next step would be the construction of the optimal portfolio on the basis of
what percentage of investment should be invested when two securities and stocks are
combined i.e. calculation of two assets portfolio weight by using minimum variance
equation which is given below.

66
 FORMULA:
 2   ( )( )
b 2 a,b a b
 a b  2a,b ( a )(b )
2 

Where
 b = standard deviation of b

 a = standard deviation of a

a,b
= correlation co-efficient between A&B

The next step is final step to calculate the portfolio risk (combined risk) ,that shows how
much is the risk is reduced by combining two stocks or scripts by using this formula:

PORTFOLIO RETURN

RP  Ra Xa  Rb Xb

PORTFOLIO RISK

 P     2 X X  


Where
Xa= weight or proportion of investment in security a.
Xb=weight or proportion of investment in security b.
σ a= standard deviation of security a.
σ b= standard deviation of security b.
a,b =correlation co-efficient between securities
σ p=portfolio risk.

67
 CIPLA FINANCIAL STATEMENTS
Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 161.14 161.02 160.90 160.68 160.59

Reserves & Surplus 15620.77 13952.50 12639.61 11825.20 10920.59

Net Worth 15781.91 14113.52 12800.51 11985.88 11090.15

Secured Loan .00 .00 .00 .00 .67

Unsecured Loan .00 174.43 324.33 1131.81 1379.94

TOTAL LIABILITIES 15781.91 14287.95 13124.84 13117.69 12470.76

Assets

Gross Block 4486.64 5629.32 5089.49 4240.43 5935.63

(-) Acc. Depreciation .00 1309.29 854.23 414.32 2342.01

Net Block 4486.64 4320.03 4235.26 3826.11 3584.65

Capital Work in Progress .00 462.92 556.09 551.05 360.71

Investments 5815.19 4636.98 4285.89 4255.78 4421.10

Inventories 2868.41 3037.98 2653.50 2918.47 3289.20

Sundry Debtors 3168.73 2336.32 1938.79 1896.41 2058.91

Cash and Bank 174.56 227.53 58.46 53.01 82.76

Loans and Advances 1905.28 2073.21 1879.23 1738.22 1385.52

Total Current Assets 8116.98 7675.04 6529.98 6606.11 6816.39

Current Liabilities 2100.23 2284.39 2093.99 1740.14 2219.61

Provisions 536.67 522.63 388.39 381.22 501.45

Total Current Liabilities 2636.90 2807.02 2482.38 2121.36 2721.06

NET CURRENT ASSETS 5480.08 4868.02 4047.60 4484.75 4095.33

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 15781.91 14287.95 13124.84 13117.69 12470.76

Rs (in Crores)

68
 RANBAXY FINANCIAL STATEMENTS
Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 239.93 239.93 239.93 241.33 255.50

Reserves & Surplus 22603.68 19530.17 20772.54 21242.43 22530.77

Net Worth 22843.61 19770.10 21012.47 21483.76 22786.27

Secured Loan 5850.55 10.82 30.63 263.78 281.63

Unsecured Loan .00 6767.68 4784.05 5399.21 5141.50

TOTAL LIABILITIES 28694.16 26548.60 25827.15 27146.75 28209.40

Assets

Gross Block 5620.96 5871.27 4948.81 6627.75 5782.70

(-) Acc. Depreciation .00 1312.74 910.18 3059.58 2597.43

Net Block 5620.96 4558.53 4038.63 3568.17 3185.27

Capital Work in Progress .00 874.13 1100.50 767.73 1090.59

Investments 17904.11 18355.26 19333.30 22365.60 25876.16

Inventories 2792.62 2135.64 2308.28 2132.16 2189.25

Sundry Debtors 5031.47 2846.96 2714.70 2016.81 1802.82

Cash and Bank 340.77 155.27 170.28 169.39 416.46

Loans and Advances 6024.20 4998.58 4203.58 3170.07 2885.00

Total Current Assets 14189.06 10136.45 9396.84 7488.43 7293.53

Current Liabilities 6319.17 4605.10 5061.86 3692.84 4746.95

Provisions 2700.80 2770.67 2980.26 3350.34 4489.20

Total Current Liabilities 9019.97 7375.77 8042.12 7043.18 9236.15

NET CURRENT ASSETS 5169.09 2760.68 1354.72 445.25 -1942.62

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 28694.16 26548.60 25827.15 27146.75 28209.40

Rs (in Crores)

69
 BAJAJ AUTO FINANCIAL STATEMENTS

Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 289.37 289.37 289.37 289.37 289.37

Reserves & Surplus 21490.53 18814.49 16744.76 12977.18 10402.78

Net Worth 21779.90 19103.86 17034.13 13266.55 10692.15

Secured Loan .00 .00 .00 .00 .00

Unsecured Loan .00 120.77 119.90 .00 111.77

TOTAL LIABILITIES 21779.90 19224.63 17154.03 13266.55 10803.92

Assets

Gross Block 1708.44 4449.14 4443.93 4390.25 4100.91

(-) Acc. Depreciation .00 2627.92 2500.67 2364.58 2183.67

Net Block 1708.44 1821.22 1943.26 2025.67 1917.24

Capital Work in Progress 103.52 113.58 100.70 112.67 254.94

Investments 19159.36 17588.30 14731.47 10260.59 9153.32

Inventories 961.51 742.58 728.38 719.07 814.15

Sundry Debtors 2559.69 1491.87 953.29 717.93 716.96

Cash and Bank 922.81 778.00 293.68 859.52 586.15

Loans and Advances 1965.06 1283.94 2064.11 1791.05 2119.56

Total Current Assets 6409.07 4296.39 4039.46 4087.57 4236.82

Current Liabilities 5445.31 4357.07 3461.80 3059.43 2766.39

Provisions 155.18 237.79 199.06 160.52 1992.01

Total Current Liabilities 5600.49 4594.86 3660.86 3219.95 4758.40

NET CURRENT ASSETS 808.58 -298.47 378.60 867.62 -521.58

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 21779.90 19224.63 17154.03 13266.55 10803.92

Rs (in Crores)

70
 MAHENDRA & MAHENDRA FINANCIAL STATEMENTS

Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 595.80 594.97 297.06 296.32 295.70

Reserves & Surplus 33613.43 29699.07 26488.56 22126.85 18948.60

Net Worth 34209.23 30294.04 26785.62 22423.17 19255.09

Secured Loan 2480.32 .00 12.20 .00 .00

Unsecured Loan .00 2864.37 2760.67 1843.55 2620.38

TOTAL LIABILITIES 36689.55 33158.41 29558.49 24266.72 21875.47

Assets

Gross Block 12501.54 15510.34 14501.88 13241.17 11109.91

(-) Acc. Depreciation .00 7650.93 6730.84 5645.18 5180.45

Net Block 12501.54 7859.41 7771.04 7595.99 5918.67

Capital Work in Progress .00 3128.71 2040.40 1562.15 2178.76

Investments 22016.03 20582.97 17908.40 13547.40 13138.16

Inventories 3839.27 2701.69 2758.01 2687.93 2437.57

Sundry Debtors 3946.30 3172.98 2938.84 2511.64 2558.03

Cash and Bank 3731.66 2893.73 1687.48 2287.03 2064.77

Loans and Advances 6662.26 7077.26 4864.15 5307.43 4638.12

Total Current Assets 18179.49 15845.66 12248.48 12794.03 11698.49

Current Liabilities 14435.91 12729.14 9019.90 10168.07 9000.62

Provisions 1571.60 1529.20 1389.93 1064.78 2068.78

Total Current Liabilities 16007.51 14258.34 10409.83 11232.85 11069.40

NET CURRENT ASSETS 2171.98 1587.32 1838.65 1561.18 629.09

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 36689.55 33158.41 29558.49 24266.72 21875.47

Rs (in Crores)

71
 BIBLIOGRAPHY
BOOKS:

1. Securities Analysis And Portfolio Management , Donalde, Fisher & Ronald

J.Jodon , 6th Edition

2. Security Analysis ad Portfolio Management, Sudhindra Bhatt, Excel Publications

3. Security Analysis ad Portfolio Management, Kelvin S.

4. Investment Analysis and Portfolio Management, Prasanna Chandra

5. Financial Management and Policy, Van Home, James C, Englewood Cliffs,

N.J.Prentice Hall, 1995

6. Money and Stock prices, Sprinkel, Beryl, W., HomewoodIll, Richard S. Irwin,
Inc, 1964.

7. Portfolio and Investment Section: Theory and Practice, Prentice Hall, 1984

8. Investment and Portfolio Analysis, Levy, Haim and Sarnat, Marshal: John, Wiley,
1984

WEBSITES:

1. www.investopedia.com

2. www.nseindia.com

3. www.bseindia.com.

4. www.bajajauto.com

5. www.moneycontrol.com

NEWSPAPERS& MAGAZINE

1. Daily News Papers. (march to june 2019)

2. Economic Times. (march to june 2019))

3. Financial Express. (march to june 2019)

72