CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.

\RI·lt'S SINGLE INDEX 1'o'IOOEL

Rp2= I<Rp- RP')2

N-I

oRp2= 6.7085

pp = L (R, - R,')*(Rm - Rm')

:L(Rm - Rm')'

pp = - 0.86133

cci 2=cri2 -Bi2 crm2 = 7.56983

Grasim Industries:-
Aditya Birla Group was originally incorporated as Gwalior Rayon Silk
Manufacturing (Weaving) Company in 1947. The company's key business arc Viscose
Stable Fiber and Cement. It also produces sponge Iron, Chemicals and textiles.
Grasim which commenced operation in 1950 by manufacturing fabrics using imported
rayon (a manmade cellulosic fibre) at Gwalior has now grown to become One of India's
tOP ten largest private sector companies in terms of assets and sales. The company's foray
into cement has became a successful diversification and the company has became the
third largest producer of cement in India.
Grasirn's subsidiaries are Daksbin Cements Ltd, Narmada Cement Company Ltd, Sun

God Trading & Investments Ltd, Samruddhi Swastik Trading & Investments ltd, Shrec
Digvijay Cement Company Ltd, Ultraf'cch Cement Ltd and Uttra'Fech Ccylinco Pvt Ltd.
The company which has hived off its software business to Birla Technologies Ltd(BTL),
a subsidiary of the. company in 2000-01 has divested its entire holding in BTL to PSI
Data Systems, a group company for an consideration of Rs, I 1.3 Crores during the year

2006-07

H.R.l.H.E, Hassan. Page29

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Table:4.7

Date Cis- Return CR. - (Rm - (R. - R,c)· (R.- R.'j' (Rm -
price R. R,.') Rm') (Rm - Rm')'
Rm')
2005 1391.2 5.2104 -28.2196 28.4584 -803.08466 796.3458 809.8811
5
2006 2789.1 100.474 67044 -31.357 -2102.3590 4494.8979 983.3221
3 9
2007 3651.6 30.9239 -2.5061 -2.0875 5.23148 6.2805 4.3577
2008 1774.7 10.652 -22.778 2.9029 -66.1222 518.8373 8.4269
0
2009 2480 19.89 -13.54 2.0841 -28.2187 183.3316 4.3437
Total 167.150 0 -2994.553 5999.69 1810.3317
6
RI"= ,)Ri
N
167.1506~5

RJ" = 33.43

Rp2= LeRp- RP')2

N-l

crRp2= 14.999

~p = L IR. - R.')"(Rm - Rm')

L(RIII - Rill')'

~p =-1.654

cci 2=cri2 ·Bi2 om2 = 16.653

H.R.I.H.E, Hassan. Page30

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Started out as a joint sector co. with public sector Gujarat Industrial Investment

Corporation (GIlC) and Narottarn Sekhsaria & Associates in 1981. Later with private

partners buying out GIIC's stake, the company became a private sector venture. It is
having six cement plants at Ambujanagar (Gujarat), Darlaghar (Himachal Pradesh),

Uppcrwahi (Maharashtra), Rabriyawas (Rajasthan), Daburji (Punjab) and in Bhatinda

district(Punjab). It is also having three Bulk Cement Terminals at Muldwarka (Gujarat),

Gavier (Gujarat) and in Ulwa (Maharashtraj.During June 2005 the company has sub-

divided its face value of equity share from RS.IO/- per share to RS.2/- per share. Further

the company has issued bonus equity share 10 its shareholders in the ratio of I :2.The

company has increased irs installed capacity of Cement by 440000 MT and with this

expansion the rotat installed capacity of Cement has been increased 10 13300000 MT.

Table :4.8

Dale en- Return (R.- R,') (Rm

- (R, - R,,') (R,- R,,')' (Rm -
prtc e R, Rill') "(Rill - Rm'] Rm')'
2005 79.6 48.6738 25.26 28.4584 718.8591 638.0676 809.8811
2006 141.3 77.5125 54.10 -31.3579 -] 696.46 2926.81 983.3221
2007 146.9 3.9631 -19.448 -2.0875 40.5977 378.2247 4.3577
2008 76.00 -15.43 -38.842 2.9029 -112.754 1508.700 8.4269

9
2009 98 2.34 -21.072 2.0841 -43.916 444.029 4.3437
Total 117.059 -1093.6732 5895.832 1810.3317

4 2

RP'=L!li_

N
117.0594+5

RP' = 23.412

Rp2= LeRp- RP')2

N-]

H.R.I.H.E, Hassan. Page31

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

"Rp2= 14.7395

pp = L (R,. - R,')W(Rm - Rm')

L(RIII - Rill')'

pp = -0.604

oci 2="i2 -Bi2 "m2 =15.3436

HDPC was promoted by the Industrial Credit and Investment Corporation of India
with initial equity reservation for the International Finance Corporation (Washington} and
his Royal Highness, the Aga Khan. The corporation provides housing loans to
individuals, corporaies and developers. Its Centre for Housing Finance (CHF) provides

technical assistance to national governments and housing finance institutions in

developing countries in South Asia and A frica. II is also a co-ordinator of the. coalition of
housing finance institutions in Asia and the Pacific, a public and private sector
partnership project, funded by the United Nations Development Programme (UN'DI'). The
company, which has been working closely with National Housing Bank to frame,
appropriate foreclosure norms so that securitization of housing debt is possible
In the year 2007, The company has opened an office in London to cater to the needs of
non-resident Indians (NRls). The company was selected as the best Indian company in the
'Financial Institutions/Non-Banking Financial Companies/Financial Services' category at

the Dun & Bradstreet - American Express Corporate Awards 2006.

H.R.I.H.E, Hassan. Page32

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Table :4.9

Dale en- Return (R. - (Rm - (R. - R.')· (R,. - (Rill -

price R. R.') Rm') (Rm - R,.'), Rill')'
Rm')
2005 1205.3 57.3358 1.706 28.4584 48.55 2.910436 809.881 I
5
2006 1624.5 34.7782 -20.8516 -31.3579 653.86 434.789 983.3221
5
2007 2872.4 76.8151 21.1853 -2.0875 -44.2243 448.816 4.3577
5
2008 336.12 47.13 -8.4998 2.9029 -24.6741 72.246 8.4269
2009 1664 62.09 6.4602 2.0841 13.4637 41.734 4.3437
TOlal 278.141 646.9753 1000.49 1810.3317
9

RI"=I£L
N
278.1491+5

RJ" = 55.6298

Rp2= LeRp- RP')2

N-I

crRp2= 2.5

pp = y IR, - R,,')*CRm - Rm')

L(Rm - Rill')'

=0.3573

cci 2=cri2 -Bi2 crm2 = 2.1427

H.R.I.H.E, Hassan. Page33

 CONS1'RUC'rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

HDFC was promoted by the Industrial Credit and lnvestmcnt Corporation of India
with initial equity reservation for the International Finance Corporation (Washington) and
his Royal Highness, the Aga Khan. The corporation provides housing loans to

individuals, corporaies and developers. Its Centre for Housing Finance (CI-fF) provides
technical assistance to national governments and housing finance institutions in
developing countries in South Asia and Africa. [l is also a co-ordinator of the coalition M
housing finance institutions in Asia and the Pacific, a public and private sector
partnership project, funded by the United Nations Development Programme (UND·P). The
company, which has been working closely with National Housing Bank to frame,
appropriate foreclosure norms so that securitization of housing debt is possible. In the
year 2007, The company has opened an office in London to cater to the needs of non-
resident Indians (NRls). The company was selected as the best Indian company in the
'Financial Institutions/Non-Banking Financial Companies/Financial Services' category at

the Dun & Bradstreet - American Express Corporate Awards 2006

Table:4.IO

nat" cu- Return (R.- R,.') (Rm - (R, - R,') (R.- R,')' (RID -
price R, Rm') *(Rm Rm')'
Rill')
2005 707.45 36.3496 0.8484 28.4584 24.144 0.7197 809.8811
2006 1069.7 51.2120 15.71 -31.3579 -492.633 246.8041 983.3221
5
2007 1727.8 61.5143 26.51 -2.0875 -55.3396 702.7801 4.3577
2008 1205.7 48.25 12.75 2.9029 37.0119 162.5625 8.4269
5
2009 1795 28.43 -7.07 20841 -14.7345 49.9849 4.3437
Total 177.505 -501.5512 1162.8513 1810.3317

RJ"= >R;
N
177 .505 9;05

H.R.I.H.E, Hassan. Page34

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

RP' = 35.50118

Rp2= Illip- RP')2

N-I
crRp2= 2.9071

pp = IIRp - R.')-CRm - RIO ')

I(Rm - RIO')'
=-0.277
cci 2=cri2 -Bi2 crm2 = 3.1841

Jl~r9a_Qn.~_l!_:_-_.
Joint Venture company promoted by Hero Cycles of India and Honda Motor
Company of Japan, is the world's largest two wheeler manufacturing Company. Honda
Motors, Japan the Technical and Financial Collaborator holds 26% stake in the Company.
The market share of the company in the Indian motorcycle market is 39.4 per cent. The
company has launched 5 new models namely CD-Dawn, for entry segment, KARrZMA
for power+ sport segment, Passion Plus and Splendor Plus and AMBITION 135 for
premium segment. In line with its lineage of introducing the world's best technologies to
India, the company announced the launch of India's first motorcycles with Fuel Injection
(FI) technology in June 2006, with the launch of 125 cc Glamour Fl. With this, Honda
Motor Co. will debuts this technology globally in 125 cc category, with Hero Honda The
company was the only two-wheeler company named amongst the top 10 companies in
India by the Asia 200 Leadership Report by the Wall Street Journal

H.R.t.H.E, Hassan. Page35

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Tabl' e : 4 II
Dale cu- Return (R,.- R.') (Rm - (R, - Rl")· (R,.- R,')' (Rm -
price R,. Rrn') (Rm - Rill ')'
Rm')
2005 859.7 50.5340 38.734 28.4584 1102.3077 1500.323 809.8811
2006 762.3 -11.323 -23.1237 -31.357 725.1106 534.705 983.3221
5 7 9
2007 697.6 -8.4869 -20.2869 -2.0875 42.3489 411.55S3 4.3577

5
2008 804.1 19.364 -2.436 2.9029 -7.07146 5.9340 8.4269
2
2009 1187 18.93 7.13 20841 14.8596 50.8369 4.3437
Total 59.0174 1877.56 2503.359 1810.3317

3
RP'=,R,
N

59.0174+5

RI" = 11.80

Rp2= 'LCRp- RP')2

N-I
crRp2= 6.2584

pp = '5' R,. - R,.')*(Rm - Rm')

2:(Rm - Rill')'
=1.037

cci 2=cri2 -Bi2 crm2 =5.2214

HJJ_L.:_-:
H.R.I.H.E, Hassan. Page36
 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

The Company was lnccrporated in the year 1933. In June 2007, The company has

changed irs name from Hindustan Lever Lld(HLL) to Hindusian Unilcver Ltd (H-UL).
'"\lith (his, the company's new corporate identity represented by a new logo comes into
effect. During 2005, the companies subsidiaries Lever India Exports LId, Lipton India

Exports Ltd, Merry weather Food Products Ltd, Toe Disinfectants LId, International

Fisheries Ltd were merged with the company as of December 30, 2005 with effect from

the respective appointed dates stipulated in the Merger Scheme approved by the High

Court of Mumbai. Vasishti Detergents Ltd (VDL)also came in to the fold of the company

as a result of amalgamation of the Tara Oil Mills Company Ltd. VDL was merged with

the company On February 28, 2006 pursuant to a Scheme of Arrangement sanctioned by

the High Court of Mumbai with retrospective effect from July I, 2005. The company

transferred the soap and soap intermediate manufacturing facilities at Scwari in Mumbai
to Bon Ltd On 17th July, 2005. In December 2004, the company obtained approval from

shareholders and transferred its Functionalized biopolymer business to Riddhi Siddhi

Gluco Biols Ltd

Table :4.12

Date cu- Return (R.- R.') (Rm - (R" - R,.') (R, - R,')' (Rm -
price. R" Rnt') *(Rnt - Rnt')'

Rnt')
2005 197.2 37.4564 24.3826 28.4584 693.4584 594.511 809.8811

5
2006 216.5 9.7845 -3.2893 -31.3579 103.1455 10.819 983.3221

5
2007 213.9 -1.2237 -14.2975 -2.0875 29.846 204.418 4.3577
2008 143.2 0.572 -12.5018 2.9029 -36.2915 156.295 8.4269

5
2009 223 18.78 5.7062 2.0841 11.8923 32.56 4.3437
Total 65.3692 802.482 998.603 1810.3317

RJ"= :Dli..
N
65.3692 .. 5

RP' = 13.0738

H.R.I.H.E, Hassan. Page37

 CONS1·RUC·fIO;\' or OPTI~tAL USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL
PORTFOLIO

Rp2= 'fIRo' RP')2

N·I

crRp2= 2.496

pp = Y R,· R,)*(Rm· Rm')

Y(Rm. Rm')'
=0.4433

cei 2=cri2 ·6i2 crm2 = 2.0527

HINDALCO INDIA:-
Hindalco Industries, a flagship company of the Adirya Birla Group, is India's

largest integrated aluminum producer, "he company has also emerged as one of the
leading player in the Copper business in India with the acquisition of Copper business or
erstwhile Indo Gulf Corporation, a Aditya Birla Group company. The company is the

market leader with 41 % markctshareln 2006·07, the Installed capacity of Aluminum

Metal, Electricity, Electricity (Co-generation), Gold and Silver capacities was expanded
by enhancing to 6000 tonnes, 100 MW, 7.4 MW, 7.5 Tonncs and 75 tonnes respectively.
By enhancing, Installed capacity of Aluminum Metal, Electricity, Electricity (Co.
generation). Gold and Silver the total installed capacity stood as 461000 tonncs, 1009.2
MW, 212.8 MW, 15 Tonnes and 150 Tonnes respectively.

Table:4.13

H.R.t.H.E, Hassan. Page38

 CONS1·RUC·fIO;\' or OPTI~tAL USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL
PORTFOLIO

(R" - R,,')"
cis- Return (R" - (Rm - (Rm - (Rm -
Date price R" R,') Rill') Rm') (R,,- R,')' Rill')'
2005 143.4 6,8474 -8,855 28.4584 -25 J .999 78.41 809.8811
2006 174.1 21.4086 5.7062 -31.3579 -178.934 32.56 983.3221
214.8
2007 5 23.4060 7.7036 -2.0875 -160812 59.345 4.35776
-10.292
2008 90.8 5.41 4 2.9029 -29.8778 105.933 8.4269
2009 129 21.44 5.7376 2.0841 11.9577 32.92 4.3437
Total 78.512 -464.9343 309.168 1810.3317

Rl"= >Ri
N

78.5 J 2+5

RI" = 15.7024

Rp2= DRp- RP')2

N-I
oRp2= 0.7729

pp = J: (R" - R,')*(Rm - Rm')

J:(Rm - Rm')'
=-0.2568

cci 2="i2 -Bi2 "m2 =1.0297

ICICI Bank.-
ICICI Bank (ICICIBK) is a commercial bank promoted by [CICI LId, an Indian
financiallnstitution, It \Vas incorporated in Jan:94 and received ils banking license fron)
H.R.I.H.E, Hassan. Page39
 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Reserve Bank of India in May.'94. II is the 2nd largest bank in India. The bank has Over
755 branches & extension counters aCrOSSIndia and over 3271 ATMs aCrOSSthe country.
During 2006-07, Sangli Bank Ltd was merged with TCICI Bank Ltd and RBJ approved
the scheme of amalgamation effective April 19, 2007.The Board of Directors of JCICI
Bank at its meeting held on March 1-32007 approved the incorporation of a new wholly
owned subsidiary. The Bank has proposed to transfer its holding in ICJCI Prudential Life
Insurance Company, ICICr Lombard General Insurance Company Ltd, Icrci Prudential
Asset Management Company LId and rCICT Prudential Trust Ltd to its proposed new
wholly owned subsidiary.
Tablc:4.14

Dale Cis- Return CR, . (Rm - (R, - R,')* (R, - (Rill .

price. R. R,') Rill') (Rill. Rill ') R,.,)l Rm')'
2005 584.7 57.7073 25.7113 28.4584 731.7025 661.07 809.881 I
2006 890.4 52.2832 202872 -31.3579 -636.1639 411.570 983.3221
2007 1232.4 38.4097 6.4137 -2.0875 -13.3885 41.135 4.3577
2008 728.1 10.40 -21.596 2.9029 -62.691 466.387 8.4269
2009 1109 1018 -30.816 2.0841 -64.2236 949.625 4.3437
Total 159 ..98 -44.7645 2529.787 1810.3317

RP'= LR.!_

159.98.;.5

RI" = 31.996

Rp2= J:(Rp- RP')2

N-I

crRp2=6.32

pp = '} R,. R,')*IRm • Rm')

I(RIII - Rm')'
=-0.024
cci 2=cri2 -Bi2 crm2 = 6.3447

H.R.t.H.E, Hassan. Page40

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

Infosys Technologies:-
Infosys Technologies Ltd (Infosys) was incorporated On July 2,1981, as a private
lid company. II became public limited company On June 1992 and subsequently the name
was also changed to lnfosys Technologies Ltd. 11 was the firstIndian company to be listed
On American Stock EXchange. The Company is One of India's leading information
rcchnolcgicstl'T) services companies. It is mainly engaged Out-Sourced application &
Infrastructure Services, Enterprise Services, Product R&D Services and Consulting

Services. "he company also develops and markets certain company owned software
products.
The company has received award 'First Position in SAFA (South Asian Federation of

Accountants) Best presented Accounts Award 2004 in the Communication and

information Technology Sector based On the evaluation of the Annual report of the
company. Wired Magazine has ranked NO.9 On Wired 40. The company was named
'India's Best Managed Company' based On a study Conducted by Business Today and A T
Kearney.

Tal I Ie :4
IS

Date en- Return R,. (R,. - (Rm - (Rr - (R, - R,')' (Rm - Rm')'
prieta R,.') Rm') Rr')'

(Rill -
2005 1498.3 43.4542 18.4792 28.4584 525.888 341.48 809.8811
Rill')
8
2006 2240.5 49.5281 24.5531 -31.357 -76993 602.85 983.3221

H.R.t.H.E, Hassan. Page41

 CONS1·Ruc·rIO;\' or OPTI~tAL PORTFOLIO USING SII.\RI·lt'S SINGLE INDEX 1'o'IOOEL

9
2007 1768.4 -21.077 I I -46.0520 -2.0875 96.134 2120.79 4.3577
2008 1394.9 27.6 2.625 2.9029 7.620 6.890 8.4269
0
2009 2643 25.37 0.395 2.084 I 0.823 0.156 4.3437
Total 124.875 -139.465 3072.166 1810.331732

RI"= >Ri
N

124.975+5

RJ" = 24.975

Rp2= L(Rn- RP')2

N-I

"Rp2= 7.68

pp = L IR, - R,,')*CRm - Rm')

l:(Rm - Rm')'
=-0.077
oci 2="i2 -Bi2 "m2 = 7 .757

ITC (Indian Tobacco Companv);-

ITC LId. a leading FMCG Cigarette major is one of the most valuable companies
of India. Rated among the World's Best Big Companies by Forbes magazine. Even
though 11"Cis renowned for its Cigarette business it also bas business interests in Hotels:
Paperboards, Paper & Packaging; agri exports and some other FMCG products like
branded packaged foods, safety matches, Incense Slicks and Greeting Cards CIC. Being
the pioneer of manufacture of cigarettes in India, I'I'C maintains its leadership position

H.R.I.H.E, Hassan. Page42