PORTFOLIO MANAGEMENT

IN

BY

NAYANI PRADEEP KUMAR REDDY

INT6443

Academic year 2016-18

TKR INSTITUTION OF MANGEMENT AND SCIENCE

(Affiliated to OSMANIA UNIVERSITY)

 DECLARATION

I hereby declare that this Project Report titled “PORTFOLIO MANAGEMENT”

at KARVY STOCK BROKING COMPANY” submitted by me to the

Department of Business Management, O.U., Hyderabad, is a bonafide work

undertaken by me and it is not submitted to any other University or Institution for

the award of any degree diploma/certificate or published any time before.

Name and address of the Student

NAYINI PRADEEP KUMAR Signature:

plot no. 27, thodelgudam,

rajampet, sangareddy

Telangana-502001
 CERTIFICATION

This is to certify that the Project Report titled “PORTFOLIO

MANAGEMENT” at KARVY BROKING COMPANY” submitted

in partial fulfilment for the award of MBA programme of Department of

Business Management, O.U., Hyderabad, was carried out by NAYINI

PRADEEP KUMAR under my guidance. This has not submitted to any

other University or Institution for the award of any degree diploma /

certificate.

Name and address of the Guide

Mrs. T.S.ARCHANA Signature:

(Associate Professor)
 ABSTRACT

Portfolio management can be defined and used in many ways, because the basic meaning of the
word is “combination of the various things keeping intact”. So I considered and evaluated this
from the perspective of the investment part in the securities segment. From the investor point of
view this portfolio followed by him is very important since through this way one can manage the
risk of investing in securities and thereby managing to get food returns from the investment in
diversified securities instead of putting all the money into one basket. Now a days investors are
cautious in choosing the right portfolio of securities to avoid the risks from market forces and
economic forces. So this topic is chosen because in portfolio management one as to follow
certain steps in choosing the right portfolio in order to get food and effective returns by
managing all the risks.

It suggest the best portfolio to the investors depending upon the portfolio risk and return. To
know the optimum portfolio from the selected bank equity shares.

Portfolio suggested to the companies to maintain a low beta value around 1 in order attract more
number of the investors. It should also see that the stock prices do not fluctuate which may cause
suspicion in the investors and reduce their interest to invest in company. companies should also
go for frequent portfolio checking to maintain the higher returns
 ACKNOWLEDGEMENTS

It has been a highly enriching experience to do my project at “KARVY STOCK

BROKING LIMITED”. It has been possible to achieve the perfect blend of valuable
experience from the work place and the indispensable knowledge gathered from
theoretical studies. Moreover, the much needed work ethics and culture have been
inculcated carefully over the period.

I extend my thanks to Dr. J.VARA PRASAD REDDY, TKR INSTITUTION

OF MANAGEMENT AND SCIENCE for his whole hearted and kind cooperation
without whom the project could not been completed.

I wish to express thanks to my company project guide Mr. VINOD SADHAK, KARVY
STOCK BROKING LIMITED for his abundant support, valuable suggestions and
guidance during the course of my project work.

I also wish to express thanks to my project guide Mrs. ARCHANA, TKR

INSTITUTION OF MANAGEMENT AND SCIENCE for her abundant support,
valuable suggestions and guidance during the course of my project work.

Finally, I thank my parents and my friends for their continuous support in

accomplishment of this project.
 TABLE OF CONTENTS

SNO CONTENTS PAGE NO

LIST OF TABLES I

LIST OF FIGURES II

1 INTRODUCTION 1

2 REVIEW OF LITERATURE 6

3 THE COMPANY 20

4 DATA ANALYSIS & PRESENTATION 37

5 FINDINGS, SUGGETION & CONCLUSIONS 57

6 BIBLIOGRAPHY 60
 LIST OF TABLES

S.NO CONTENT PAGE NO

1 Table showing equity share price of INFOSYS 37

2 Table showing risk & return of INFOSYS 38

3 Table showing equity share price of BHARTHI 39

AIRTEL

4 Table showing risk & return of BHARTHI AIRTEL 40

5 Table showing equity share price of CIPLA 41

6 Table showing risk & return of CIPLA 42

7 Table showing equity share price of ICICI BANK 43

8 Table showing risk & return of ICICI BANK 44

9 Table showing equity share price of MARUTI 45

10 Table showing risk & return of MARUTI 46

11 Table showing equity share price of BHEL 47

12 Table showing risk & return of BHEL 48

13 Table showing equity share price of ITC 49

14 Table showing risk & return of ITC 50

 LIST OF FIGURES

SNO CONTENT PAGE NO

1 Equity share price fluctuations of INFOSYS 37

2 Equity share price fluctuations of BHARATHI AIRTEL 38

3 Equity share price fluctuations of CIPLA 41

4 Equity share price fluctuations of ICICI BANK 43

5 Equity share price fluctuations of MARUTI 45

6 Equity share price fluctuations of BHEL 47

7 Equity share price fluctuations of ITC 49

8 RISK & RETURN OF PORTFOLIO-1 51

9 RISK & RETURN OF PORTFOLIO-2 53

10 RISK & RETURN OF PORTFOLIO-3 55

11 PORTFOLIO RISK & RETURN 57

Portfolio management
Meaning of portfolio:

A combination of securities with different risk & return characteristics will constitute the
portfolio of the investor. Thus, a portfolio is the combination of various assets and/ or
instruments of investments. The combination may have different features of risk & return,
separate from those of the components. The portfolio is also built up out of the wealth or income
of the investor over a period of time, with a view to suit his risk and return preference to that of
the portfolio that he holds. The portfolio analysis of the risk and return characteristics of
individual securities in the portfolio and changes that may take place in combination with the
securities due to interaction among themselves and impact of each one of them on others

An investor considering investments in securities is faced with the problem of

choosing from a large number of securities. His choice depends upon the risk and return
characteristics of individual securities. He would attempt to choose the most desirable securities
and like to allocate his funds over this group of securities. Again he is faced with the problem
of deciding which securities to hold and how much to invest in each. The investor faces an
infinite number of possible portfolios or groups of securities. The risk and return characteristics
of portfolio differ from those of individual securities combining to form portfolio. the investor
tries to choose the optimal portfolio taken into consideration the risk return characteristics of all
possible portfolios.

Portfolio management:

An investor considering investment in securities is aced with the problem of choosing from
among a large number of securities and how to allocate his funds over this group of securities.
Again he is faced with problem of deciding which securities to hold and how much to invest in
each. The risk and return characteristics of portfolios. The investor tries to choose the optimal
portfolio taking into consideration the risk return characteristics of all possible portfolios. As the
risk return characteristics of individual securities as well as portfolios also change. This calls for
periodic review and revision of investment portfolios of investors. An investor invests his funds
in a portfolio expecting to get good returns consistent with the risk that he has to bear the return
realized from the portfolio has to be evaluated. It is evident that rational investment activity
involves creation of an investment portfolio. Portfolio management comprises all the processes
involved in the creation and maintenance of an investment portfolio. It deals specifically with the
security analysis, portfolio analysis, portfolio selection, portfolio revision & portfolio evaluation.
Portfolio management makes use of analytical techniques of analysis and conceptual theories
regarding rational allocation of funds.

NEED FOR STUDY:

 Portfolio management has emerged as a separate academic discipline in India. Portfolio

theory that deals with the rational investment decision-making process has now become an
integral part of financial literature.

 Investing in securities such as shares, debentures & bonds is profitable well as exciting. It
is indeed rewarding but involves a great deal of risk & need artistic skill. Investing in
financial securities is now considered to be one of the most risky avenues of investment.

 Such group of securities is called as PORTFOLIO. Creation of portfolio helps to reduce

risk without sacrificing returns. Portfolio management deals with the analysis of
individual securities as well as with the theory & practice of optimally combining
securities into portfolios.

 The modern theory is of the view that by diversification, risk can be reduced. The
investor can make diversification either by having a large number of shares of companies
in different regions, in different industries or those producing different types of product
lines. Modern theory believes in the perspective of combinations of securities under
constraints of risk and return.
SCOPE OF STUDY:
 This study covers the Markowitz model. The study covers the calculation of correlations
between the different securities in order to find out at what percentage funds should be
invested among the companies in the portfolio.

 Also the study includes the calculation of individual Standard Deviation of securities and
ends at the calculation of weights of individual securities involved in the portfolio.

OBJECTIVES

 To study the investment pattern and its related risks & returns In KSBL.

 To find out optimal portfolio of KSBL, which gave optimal return at a minimize risk to
the investor in KSBL.

 To see whether the portfolio risk is less than individual risk on whose basis the portfolios
are constituted

 To see whether the selected portfolios is yielding a satisfactory and constant return to the
investor

 To understand, analyze and select the best portfolio

STEPS IN PORTFOLIO MANAGEMENT:

 Specification and qualification of investor objectives, constraints, and preferences in the

form of an investment policy statement.

 Determination and qualification of capital market expectations for the economy, market
sectors, industries and individual securities.

 Allocation of assets and determination of appropriate portfolio strategies for each asset
class and selection of individual securities.

 Performance measurement and evaluation to ensure attainment of investor objectives.

 Monitoring portfolio factors and responding to changes in investor objectives, constrains

and / or capital market expectations.

 Rebalancing the portfolio when necessary by repeating the asset allocation, portfolio
strategy and security selection.
METHODOLOGY AND FRAMEWORK

DATA COLLECTION METHODS

The data collection methods include both the primary and secondary collection methods.

Primary collection methods:

This method includes the data collection from the personal discussion with the authorized clerks
and members of the KSBL financial services.

Secondary collection methods:

The secondary collection methods includes the lectures of the superintend of the department of
market operations and so on., also the data collected from the news, magazines and different
books issues of this study Superintend

LIMITATIONS OF THE STUDY

1. Construction of Portfolio is restricted to two companies based on Markowitz model.

2. Very few and randomly selected scripts / companies are analyzed from BSE listings.
3. Data collection was strictly confined to secondary source. No primary data is
associated with the project.
4. Detailed study of the topic was not possible due to limited size of the project.
5. There was a constraint with regard to time allocation for the research study i.e. for a
period of 45 days.
Portfolio management is the art and science of making decisions about investment mix and
policy, matching investments to objectives, asset allocation for individuals and institutions, and
balancing risk against performance. Portfolio management is all about determining strengths,
weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international,
growth vs. safety, and many other trade-offs encountered in the attempt to maximize return at a
given appetite for risk.

The Key Elements of Portfolio Management

Asset Allocation: The key to effective portfolio management is the long-term mix of assets.
Asset allocation is based on the understanding that different types of assets do not move in
concert, and some are more volatile than others. Asset allocation seeks to optimize the risk/return
profile of an investor by investing in a mix of assets that have low correlation to each other.
Investors with a more aggressive profile can weight their portfolio toward more volatile
investments. Investors with a more conservative profile can weight their portfolio toward more
stable investments.

Diversification: The only certainty in investing is it is impossible to consistently predict the

winners and losers, so the prudent approach is to create a basket of investments that provide
broad exposure within an asset class. Diversification is the spreading of risk and reward within
an asset class. Because it is difficult to know which particular subset of an asset class or sector is
likely to outperform another, diversification seeks to capture the returns of all of the sectors over
time but with less volatility at any one time. Proper diversification takes place across different
classes of securities, sectors of the economy and geographical regions.

Rebalancing: This is a method used to return a portfolio to its original target allocation at annual
intervals. It is important for retaining the asset mix that best reflects an investor’s risk/return
profile. Otherwise, the movements of the markets could expose the portfolio to greater risk or
reduced return opportunities. For example, a portfolio that starts out with a 70% equity and 30%
fixed-income allocation could, through an extended market rally, shift to an 80/20 allocation that
exposes the portfolio to more risk than the investor can tolerate. Rebalancing almost always
entails the sale of high-priced/low-value securities and the redeployment of the proceeds into
low-priced/high-value or out-of-favor securities. The annual iteration of rebalancing enables
investors to capture gains and expand the opportunity for growth in high potential sectors while
keeping the portfolio aligned with the investor’s risk/return profile.

Aspects of portfolio management:

Basically portfolio management involves

A proper investment decision making of what to buy & sell

Proper money management in terms of investment in a basket if assets so as to satisfy the
asset preferences of investors.
Reduce the risk and increase returns.

Objectives of portfolio management:

The basic objective of portfolio management is to maximize yield and minimize risk. The other
ancillary objectives are as per needs of investors, namely;

Regular income or stable return

Appreciation of capital
Marketability and liquidity
Safety of investment
Minimizing off tax liability

Phases 0f portfolio management:

 Security analysis
 Portfolio analysis
 Portfolio selection
 Portfolio revision
 Portfolio evaluation
Security analysis:

An examination and evaluation of the various factors affecting the value of a security.
Security analysis stands for the proposition that a well- disciplined investor can determine a
rough value for a company from all of its financial statements, make purchases when the
market inevitably under prices some of them, earn a satisfactory return, and never be in real
danger of permanent loss

Portfolio analysis:

Analysis phase off portfolio management consists of identifying the range of possible
portfolios that can be constituted from a given set of securities and calculating their return
and risk for further analysis

Portfolio selection:

The proper goal of portfolio construction is to generate a portfolio that provides the highest
returns at a given level of risk. A portfolio having this characteristic is known as an efficient
portfolio. The inputs from portfolio analysis can be used to identify the set of efficient
portfolios. From this set of efficient portfolios. The optimal portfolio has to be selected for
investment. Harry Markowitz portfolio theory provides both the conceptual framework and
analytical tools for determining the optimal portfolio in a disciplined and objective way

Portfolio revision:

Having constructed the optimal portfolio, the investor has to constantly monitor the
portfolio to ensure that it continues to be optimal. Portfolio revision is as important as
portfolio analysis and selection.

Portfolio evaluation:

It is the process, which is concerned with assessing the performance of the portfolio over a
selected period of time in terms off returns and risk. This involves quantitative measurement
of actual return realized and the risk born by the portfolio over the period off investment. It
provides a feedback mechanism for improving the entire portfolio management process
Process of portfolio management:

The portfolio program and asset management program both follow a disciplined process to
establish and monitor an optimal investment mix. This six stage process helps ensure that the
investments match investor’s unique needs, both now and in the future.

determine
identify
optimal
goals and
investment
objectives
mix

create a
reassess
customized
needs &
investment
goals
policy

select
monitor
investment
progress
s

Portfolio mangement process

1. Identify goals and objectives:

when will you need the money from your investments? What are you saving your
money for? With the assistance of financial advisor, the investment profile
questionnaire will guide through a series of questions to help identify the goals and
objectives for the investments
.
2. Determine optimal investment mix:
once the investment profile questionnaire is completed, investor’s optimal investment
mix or asset allocation will be determined. An asset allocation represents the mix of
investments ( cash, fixed income and equities) that match individual risk and return
needs.
 This step represents one of the most important decisions in your portfolio
construction, as asset allocation has been found to be the major determinant of long-
term portfolio performance
3. Create a customized investment policy statement:
when the optimal investment mix is determined, the next step is to formalize our
goals and objectives in order to utilize them as a benchmark to monitor progress and
future updates.
4. Select investments:
the customized portfolio is created using an allocation of select QFM funds. each
QFM is designed to satisfy the requirements of a specific asset class, and is selected
in the necessary proportion to match the optimal investment mix.
5. Monitor progress:
Building an optimal investment mix is only part of the process. It is equally important
to maintain the optimal mix when varying market conditions cause investment mix to
drift away from its target. To ensure that mix of asset classes stays in line with
investor’s unique needs, the portfolio will be monitored and rebalanced back to the
optimal investment mix.
6. Reassess needs and goals: With the flexibility of the portfolio program and asset
management program, when the investor’s needs or other life circumstances change,
the portfolio has the flexibility to accommodate such changes
RISK AND EXPECTED RETURN:

There is a positive relationship between the amount of risk and the amount of expected
return i.e., the greater the risk, the larger the expected return and larger the chances of substantial
loss. One of the most difficult problems for an investor is to estimate the highest level of risk he
is able to assume.

 Risk is measured along the horizontal axis and increases from the left to right.

 Expected rate of return is measured on the vertical axis and rises from bottom to top.

 The line from 0 to R (f) is called the rate of return or risk less investments commonly
associated with the yield on government securities.
  The diagonal line form R (f) to E(r) illustrates the concept of expected rate of return
increasing as level of risk increases.

TYPES OF RISKS:
Risk consists of two components. They are

1. Systematic Risk
2. Un-systematic Risk

1. Systematic Risk:

Systematic risk is caused by factors external to the particular company and uncontrollable
by the company. The systematic risk affects the market as a whole. Factors affect the systematic
risk are

 economic conditions
 political conditions
 sociological changes

The systematic risk is unavoidable. Systematic risk is further sub-divided into three types. They
are

a) Market Risk
b) Interest Rate Risk
c) Purchasing Power Risk
 a) Market Risk
One would notice that when the stock market surges up, most stocks post higher price. On the
other hand, when the market falls sharply, most common stocks will drop. It is not uncommon to
find stock prices falling from time to time while a company‘s earnings are rising and vice-versa.
The price of stock may fluctuate widely within a short time even though earnings remain
unchanged or relatively stable.

b)Interest Rate Risk:

Interest rate risk is the risk of loss of principal brought about the changes in the interest
rate paid on new securities currently being issued.

c) Purchasing Power Risk:

The typical investor seeks an investment which will give him current income and / or
capital appreciation in addition to his original investment.

2. Un-systematic Risk:

Un-systematic risk is unique and peculiar to a firm or an industry. The nature and mode of
raising finance and paying back the loans, involve the risk element. Financial leverage of the
companies that is debt-equity portion of the companies differs from each other. All these factors
affect the un-systematic risk and contribute a portion in the total variability of the return.

 Managerial inefficiently

 Technological change in the production process

 Availability of raw materials

  Changes in the consumer preference

 Labour problems

The nature and magnitude of the above mentioned factors differ from industry to industry
and company to company. They have to be analyzed separately for each industry and firm. Un-
systematic risk can be broadly classified into:

a) Business Risk
b) Financial Risk

a. Business Risk:
Business risk is that portion of the unsystematic risk caused by the operating environment of the
business. Business risk arises from the inability of a firm to maintain its competitive edge and
growth or stability of the earnings. The volatility in stock prices due to factors intrinsic to the
company itself is known as Business risk. Business risk is concerned with the difference between
revenue and earnings before interest and tax. Business risk can be divided into.

i). Internal Business Risk

Internal business risk is associated with the operational efficiency of the firm. The
operational efficiency differs from company to company. The efficiency of operation is reflected
on the company‘s achievement of its pre-set goals and the fulfillment of the promises to its
investors.

ii).External Business Risk

 External business risk is the result of operating conditions imposed on the firm by
circumstances beyond its control. The external environments in which it operates exert some
pressure on the firm. The external factors are social and regulatory factors, monetary and fiscal
policies of the government, business cycle and the general economic environment within which a
firm or an industry operates.

b. Financial Risk:
It refers to the variability of the income to the equity capital due to the debt capital. Financial
risk in a company is associated with the capital structure of the company. Capital structure of the
company consists of equity funds and borrowed funds.
PORTFOLIO ANALYSIS:

Various groups of securities when held together behave in a different manner and give
interest payments and dividends also, which are different to the analysis of individual securities.
A combination of securities held together will give a beneficial result if they are grouped in a
manner to secure higher return after taking into consideration the risk element.

There are two approaches in construction of the portfolio of securities. They are

 Traditional approach
 Modern approach

TRADITIONAL APPROACH:

Traditional approach was based on the fact that risk could be measured on each
individual security through the process of finding out the standard deviation and that security
should be choose where the deviation was the lowest. Traditional approach believes that the
market is inefficient and the fundamental analyst can take advantage of the situation. Traditional
approach is a comprehensive financial plan for the individual. It takes into account the
individual need such as housing, life insurance and pension plans. Traditional approach basically
deals with two major decisions. They are

1. Determining the objectives of the portfolio

2. Selection of securities to be included in the portfolio
MODERN APPROACH:

Modern approach theory was brought out by Markowitz and Sharpe. It is the combination
of securities to get the most efficient portfolio. Combination of securities can be made in many
ways. Markowitz developed the theory of diversification through scientific reasoning and
method. Modern portfolio theory believes in the maximization of return through a combination
of securities. The modern approach discusses the relationship between different securities and
then draws inter-relationships of risks between them. Markowitz gives more attention to the
process of selecting the portfolio. It does not deal with the individual needs.

MARKOWITZ MODEL:

Markowitz model is a theoretical framework for analysis of risk and return and their
relationships. He used statistical analysis for the measurement of risk and mathematical
programming for selection of assets in a portfolio in an efficient manner. Markowitz apporach
determines for the investor the efficient set of portfolio through three important variables i.e.

 Return
 Standard deviation
 Co-efficient of correlation
Markowitz model is also called as an “Full Covariance Model“. Through this model the
investor can find out the efficient set of portfolio by finding out the tradeoff between risk and
return, between the limits of zero and infinity. According to this theory, the effects of one
security purchase over the effects of the other security purchase are taken into consideration and
then the results are evaluated. Most people agree that holding two stocks is less risky than
holding one stock. For example, holding stocks from textile, banking and electronic companies is
better than investing all the money on the textile company‘s stock.

Markowitz had given up the single stock portfolio and introduced diversification. The
single stock portfolio would be preferable if the investor is perfectly certain that hisexpectation
of highest return would turn out to be real. In the world of uncertainty, most of the risk adverse
investors would like to join Markowitz rather than keeping a single stock, because diversification
reduces the risk.
ASSUMPTIONS:

 All investors would like to earn the maximum rate of return that they can achieve from
their investments.
 All investors have the same expected single period investment horizon.
 All investors before making any investments have a common goal. This is the avoidance
of risk because Investors are risk-averse.
 Investors base their investment decisions on the expected return and standard deviation of
returns from a possible investment.
 Perfect markets are assumed (e.g. no taxes and no transition costs)
 The investor assumes that greater or larger the return that he achieves on his investments, the
higher the risk factor surrounds him. On the contrary when risks are low the return can also
be expected to be low.
 The investor can reduce his risk if he adds investments to his portfolio.
 An investor should be able to get higher return for each level of risk “by determining the
efficient set of securities“.
 An individual seller or buyer cannot affect the price of a stock. This assumption is the basic
assumption of the perfectly competitive market.
 Investors make their decisions only on the basis of the expected returns, standard deviation
and covariance’s of all pairs of securities.
 Investors are assumed to have homogenous expectations during the decision-making period
 The investor can lend or borrow any amount of funds at the risk less rate of interest. The risk
less rate of interest is the rate of interest offered for the treasury bills or Government
securities.
 Investors are risk-averse, so when given a choice between two otherwise identical portfolios,
they will choose the one with the lower standard deviation.
 Individual assets are infinitely divisible, meaning that an investor can buy a fraction of a
share if he or she so desires.
 There is a risk free rate at which an investor may either lend (i.e. invest) money or borrow
money.
 There is no transaction cost i.e. no cost involved in buying and selling of stocks.
 There is no personal income tax. Hence, the investor is indifferent to the form of return
either capital gain or dividend
KARVY STOCK BROKING LIMITED

COMPANY OVERVIEW

KARVY was established as “KARVY& Company” by 5 chartered accountants during the

year1979-80. At that time it was confined only to audit and taxation. Later on it diversified into
financial and accounting services during the year 1981-82 with a capital of Rs.1,50,000. It
achieved its first milestone after its first investment in technology. KARVY became a known
name during the year 1985-86 when it forayed into capital market as registrar.
But now KARVY, is a premier integrated financial services provider, and ranked among the top
five in the country in all its business segments, services over 16 million individual investors in
various capacities, and provides investor services to over 300 corporates, comprising who is who
of corporate India.
KARVY covers the entire spectrum of financial services such as Stock broking, Depository
Participants, Distribution of financial products like mutual funds, bonds, fixed deposit, Merchant
Banking & Corporate Finance, Commodities Broking, Personal Finance Advisory Services,
placement of equity, IPOs, among others.
The KARVY Group is today a well-diversified conglomerate. Its businesses straddle the entire
financial services spectrum as well as data processing and managing segments. Since most of its
financial services were retail focused, the need to build scale and skill in the transaction
processing domain became imperative. Also during stressed environment in the financial
services segment, the non-financial businesses bring in a lot of stability to the group’s
businesses.

KARVY’s financial services business is ranked among the top-5 in the country across its
business segments. The Group services over 70 million individual investors in various capacities,
and provides investor services to over 600 corporate houses, comprising the best of Corporate
India.

The Group offers stock broking, depository participant, distribution of financial products
(including mutual funds, bonds and fixed deposits), commodities broking, personal finance
advisory services, merchant banking & corporate finance, wealth management, NBFC (loans to
individuals, micro and small businesses), Data management, Forex & currencies, Registrar &
Transfer agents, Data Analytics, Market Research among others.

KARVY prides itself on remaining customer centric as all times through a combination of
leading edge technology, Professional management and a wide network of offices across India.
KARVY is committed to its quest as an Equal Opportunity Employer and believes in the rights
for differently-abled persons. We have over 12% employees who are challenged in some form in
one of our prominent businesses.

PROMOTERS & MANAGEMENT TEAM

Mr. C. Parthasarathy
Chairman & Managing Director

Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified financial services
KARVY group. C Parthasarathy (CP as he is better known in the Industry), has the uncanny
knack of staying ahead of the curve and the foresight to spot opportunities that seem invisible on
the horizon for the others. KARVY’s entire history is a case study of turning adversity into
opportunity. CP is a chartered accountant by qualification, whose entrepreneurial energy drove
him to co-found KARVY in 1983 with a less-than-modest capital of Rs 150,000.

Over the years CP’s vision and leadership skills have helped the group navigate through the
turbulent times with a strong sense of purpose and clarity of thought.

CP is one of the pioneers of financial inclusion. Under his leadership KARVY has won
numerous industry awards and accolades. He also is an independent Director in many listed
companies.
 Mr. M. Yugandhar
Managing Director

Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group. He is a

Fellow Member of the Institute of Chartered Accountants of India and has varied experience in
thefieldoffinancialservicesspanningover30oddyears.Yugandhar has helped position and build a
strong brand for the group in the registry and other financial services businesses. The registry
business of KARVY is one of its flagship businesses and with the collaboration with
Computershare has grown to become the largest registrar in India for over two decades.
Yugandhar has played a key role in building strong relationships with public sector banks and
other PSUs which has helped KARVYwin some important mandates from some of India’s
renowned companies.

KARVY under his guidance has helped create the equity cult and substantially built retail
investor wealth. He is an Independent Director on the board of several reputed companies.

Mr. M. S. Ramakrishna
Director
Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the orchestrator of
technology initiatives such as the call center in the service of the customer.

Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30 years
of experience in the financial services arena. He has helped KARVY diversify into the field of
medical transcription leveraging on the company's core competency of transaction processing.

He is an Independent Director on the board of several reputed companies.

MANAGEMENT TEAM

Mr. V.Mahesh
Managing Director – KARVY Data Management

Mr. V Mahesh, is the Managing Director of KARVY Data Management and has work
experience spanning over 2 decades with in depth exposure to operations on most financial
services businesses. Commencing his professional stint with the Registry business where he has
to his credit managing over 300 IPOs and other forms of offerings, he was amongst the first few
to work closely on the Book Building process initiated by SEBI in 1995. After initially working
with MCS as an Assistant Vice President, he moved to KARVY. He was also responsible to
initiate the process of setting up the Depository participant business in KARVY and was
responsible for both the operations and the marketing of the business. He has been nominated by
the NSDL to various committees which addressed key changes to the overall processes and
policies for the Demat business.

Nurturing the passion for understanding and interpreting technology and processes, he was
responsible to create and set up the centralized broking platform, centralized back office
operations for all financial products and creating a network of over 500 branches covering over
300 locations for KARVY. He is also instrumental in creating and launching the Online platform
of KARVY Stock Broking Limited.

He is a Post Graduate in Commerce from University of Madras (M.Com). and also completed
Post Graduate Diploma in Computer Applications.

Mr. V. Ganesh
CEO – KARVY Computershare

Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5 decades of
experience in the financial services space and is part of KARVY Group’s leadership team.
Before joining KARVY, he was associated with ITC’s risk management and financial audit
services department. Earlier he was associated with Proctor and Gamble and was responsible for
product pricing and financial support functions for P&G’s soaps and health care businesses.

He was instrumental in setting up the Mutual Fund registry business for KARVY. At KARVY,
for over 2 decades, Ganesh has been instrumental in building a strong techno-commercial base
with emphasis on establishing a pan India branch network, back office processing, call center,
web initiatives, online trading, B2B interfaces etc., in the transfer agency and BPO businesses.

Mr. Sushil Sinha

Wholetime Director - KARVYComtrade
Mr. Sushil Sinha, the Country Head of KARVYComtrade Ltd, has successfully made
KARVYComtrade a force to reckon with in the marketplace. With over 10 years of expertise in
the broking sector, he is a well-known face today in the electronic and print media. Under his
aegis, the company has won numerous honours and awards nationwide, including the UTV
Bloomberg Leadership Award 2011 and India’s Best Market Analyst Award—for two
consecutive years—by Zee Business.

Having joined KARVYComtrade in December 2005 as Senior Manager (Business

Development), he has steadily climbed up the organizational ladder to head the business now.
Before joining KCTL, he worked in Geojit Financial Securities for two years. Prior to that, he
had worked with the Agriculture department in the Government of Jharkhand under various
capacities for four years.

A science graduate, Mr. Sinha has completed two MBAs, one majoring in Personnel
Management & Industrial Relations from Patna University and the other in Agri Business
Management from IIPM, Bangalore, a Ministry of Commerce, Government of India institution.

Mr. P. B. Ramapriyan
Vice President & Head - Financial Product Distribution
Mr. Ramapriyan is working with KARVY for over 2 decades, He has strength of sorts in the
distribution of Financial products including Equity, Bonds, Fixed Deposits and Auto
Finance. He has successfully marketed several financial products for large number of corporate
of various sizes. He is also responsible for managing the Pan India Network of brokers and sub-
brokers. He has been instrumental in KARVY’s success in distribution of debt products.

Mr. Rajiv R. Singh

Vice President & Business Head - KARVY Stock Broking Limited

Mr. Rajiv R. Singh is the Vice President & Business Head of the Equity Broking business. He
has been associated with KARVY for more than a decade. He joined KARVY in 2001 and
moved up the corporate ladder with his sheer dedication, commitment and hard work.

Rajiv, with an enormous experience in finance industry leads the responsibility of all aspects of
KARVY’s equity broking business which includes strategy, revenue generation, business
development and overall customer satisfaction. Rajiv is widely regarded as a results-driven
leader who plays a key role in building the stock broking business of KSBL and make it one of
the largest stock broking houses in the country. Rajiv also plays a key role in identifying skills.
Rajiv is a Certified Management Accountant–CMA.

Mr. J. Ramaswamy
Group Head - Corporate Affairs
Mr. Ramaswamy, the Group Head for Corporate Affairs, is the official spokesperson for the
KARVY Group. Mr. Ramaswamy has more than 25 years of experience in various spheres of the
financial services industry, of which 10 years has been in the Legal and Secretarial division of
Reliance, handling various public issues, mergers, monitoring performance of various
departments, liaising with regulatory bodies and outside agencies (viz., the stock exchange,
SEBI, DCA and others), and coordinating all the board meetings.

The Corporate Affairs Division is involved in integration and strategic planning of all the
business divisions of KARVY. Mr. Ramaswamy’s job responsibility encompasses monitoring
the performance of all divisions through regular reviews, initiating and implementing new
business initiatives, corporate communication and media relations, acting as official
spokesperson for the entire Group, conceptualizing various policies and procedures to improve
the internal work environment, and working on a parallel platform with the HR department to
develop models for raising productivity and cost-effectiveness. He oversees the international
business of KARVY Global Services.

Mr. Deepak Gupta

Group Head – HR
Mr. Deepak Gupta brings with him over 20 years of experience in HR, spanning financial
services, ITes and manufacturing. Prior to joining KARVY, he was Chief People Officer, Human
Resources, with Bajaj Finance Limited, a Rahul Bajaj Group Company, based at Pune. He has
also had a successful career with a few prominent corporate, including SREI, Enam, CRISIL,
CEAT Financial Services and Reliance Industries.

Deepak holds a Master’s degree in Human Resources Development from Jamnalal Bajaj Institute
of Management and a diploma in Business Management and Industrial Relations.

Mr. G. Krishna Hari

Group Head – Finance

Mr. G. Krishna Hari holds a Bachelor’s degree in Commerce and is associate member of the
Institute of Chartered Accountants of India (ICAI). He has over 27 years of experience in the
areas of finance and accounts functions encompassing fund raising, financial reporting,
management accounting,and working capital management, taxation, budgeting and forecasting
and financial due diligence reviews for mergers & acquisitions and investment proposals.

He has been associated with the KARVY Group for the past 15 years and is currently designated
as the Vice President- Finance & Accounts at KARVY Stock Broking Limited. Prior to joining
KARVY, he was the head of finance & accounts division in Asia Pacific Investment Trust
Limited, Hyderabad (Formerly Nagarjuna Investment Trust Limited) an NBFC Company.
KARVY GROUP

The KARVY Group is a premier integrated financial services provider, ranked among the top-5
in the country across its business segments. The Group services over 70 million individual
investors in various capacities, and provides investor services to over 600 corporate houses.
KARVY Group established its presence through a wide network of over 450 branches, (or 900
offices) covering in excess of 400 cities and towns.

KARVY covers the entire spectrum of financial services, viz stock broking, depository
participant, distribution of financial products (including mutual funds, bonds and fixed deposits),
commodities broking, personal finance advisory services, merchant banking & corporate finance,
wealth management, NBFC, among others.

KARVY has a professional management team and ranks among the best in technology,
operations, and more importantly, in research of various industrial segments
 KARVY CONSULTANT LIMITED

As the flagship company of the KARVY Group, KARVY Consultants Limited has always
remained at the helm of organizational affairs, pioneering business policies, work ethic and
channels of progress.
Having emerged as a leader in the registry business, the first of the businesses that KARVY
Group ventured into, they have now transferred this business into a joint venture with
Computershare Limited of Australia, the world’s largest registrar. With the advent of
depositories in the Indian 17

capital market and the relationships that they have created in the registry business, KARVY
Consultants Ltd. believe that they were best positioned to venture into this activity as a
Depository Participant. KARVY Consultants were one of the early entrants registered as
Depository Participant with NSDL (National Securities Depository Limited), the first Depository
in the country and then with CDSL (Central Depository Services Limited). Today, KARVY
Consultants service over 6 lakhs customer accounts in this business spread across over 250
cities/towns in India and are ranked amongst the largest Depository Participants in the country.
With a growing secondary market presence, KARVY Consultants Ltd. have transferred this
business to KARVY Stock Broking Limited (KSBL), an associate and a member of NSE and
BSE.
 KARVY REALITY & SERVICES (INDIA)
LIMITED

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the business of real estate and
property services offering value added property services and offers individuals and
establishments a myriad of options across investments, financing and advisory services in the
realty sector.
KARVY Realty & Services India Limited carries forward its legacy of trust and excellence in
investor and customer services delivered with a passion for services and the highest level of
quality that align with global standards.

KARVY INVESTOR SERVICES LIMITED

KARVY investor services limited is recognized as a leading merchant banker in the country,
registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing
on opportunities in corporate consolidations, mergers and acquisitions and corporate
restructuring, which have earned them the reputation of a merchant banker. Raising resources for
corporate or Government Undertaking successfully over the past two decades have given them
the confidence to renew their focus in this sector.
The quality professional team and their work-oriented dedication have propelled them to offer
value-added corporate financial services and act as a professional navigator for long term growth
of their clients, which include leading corporates, State Governments, foreign institutional
investors, public and private sector companies and banks, in Indian and global markets.
They have also emerged as a trailblazer in the arena of relationships, both at the customer and
trade levels because of our unshakable integrity, seamless service and innovative solutions that
are tuned to meet varied needs. Their team of committed industry specialists, having extensive
experience in capital markets, further nurtures this relationship.
Their financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-
offs, joint ventures, privatization and takeover defense mechanisms have elevated their
relationship with the client to one based on unshakable trust and confidence.

KARVY COMTRADE LIMITED

At KARVY Commodities is focused on taking commodities trading to new dimensions of

reliability and profitability. They have made commodities trading, an essentially age-old
practice, into a sophisticated and scientific investment option.
They enable trade in all goods and products of agricultural and mineral origin that include
lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a
well-systematized trading platform. Their technological and infrastructural strengths and
especially their street-smart skills make them an ideal broker. Their service matrix is holistic
with a gamut of advantages, the first and foremost being their legacy of human resources,
technology and infrastructure that comes from being part of the KARVY Group.

KARVY COMPUTERSHARE PRIVATE LIMITED

KARVY Computershare is the largest registrar and a market leader, servicing over 70 million
investor accounts spread over 900 issuers including banks, PSUs and mutual funds. With a work
force of over 2500 experienced professionals drawn from various disciplines. KARVY
Computershare has emerged as a market leader in Investor Servicing in the country by offering
its services through its network of 450 Branches + 400 locations spread across the country.
KARVY Computershare has set new benchmarks in Investor Servicing by establishing
performance standards for its Service Delivery. The company has developed and enhanced its
Service delivery through structured and custom built training and development initiatives.
KARVY Computershare is the first organization, in its line of business, to achieve the distinction
of receiving an ISO 9002 certification and have now migrated to ISO 9001:2008 standards, for
quality management systems, certified by DNV. They have also been awarded ISO 27001:2005
certification by DNV, for our high standards with respect to information security and
management system. KARVY Computershare Pvt. Ltd. is a 50:50 Joint Venture between
KARVY and Australia based Computershare - the world's largest Transfer Agent. The joint
venture with Computershare Limited helps us adopt international practices in client and investor
servicing.

KARVY GLOBAL SERVICES LIMITED

KARVY Global Services Ltd is a wholly owned subsidiary of the KARVY Group, which was
formed in the year 2004 as a third party service provider. The company has its headquarters and
multiple global delivery centers at Hyderabad and a business development office at New York.
The service specialization of KARVY lies in providing high end advanced analytical knowledge
process services in domains like advanced financial modeling & analysis, investment research,
market research analytics, CRM analytics, models for demand forecasting etc. The company also
provides outsourcing services for F&A function supported with process expertise and scalable IT
platforms in synergy with domain knowledge. KARVY has strategic technical partnerships with
globally top software solution enterprises like Oracle Financials, Peoplesoft HRMS and SAP.
The services offered by KGSL includes Finance & Accounting, Inbound/Outbound Voice,
Human Resource Services, Data Capture/Management, Market Analysis and Investment
Research.
 KARVY STOCK BROKING LIMITED

KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely
towards attaining diverse goals of the customer through varied services. Creating a plethora of
opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping
the customer create waves in his portfolio and empowering the investor completely is the
ultimate goal.
KARVY Stock Brokers Limited, a member of National Stock Exchange of India and the
Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000
active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL
and CDSL.It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference between
unpredictability and a safety anchor in the market is provided by in-depth knowledge of market
functioning and changing trends, planning with foresight and choosing one & more options with
care. KSBL offer services that are beyond just a medium for buying and selling stocks and
shares. Instead they provide services which are multi-dimensional and multi-focused in their
scope. There are several advantages in utilizing KSBL services, which are the reasons why it is
one of the best in the country.

KARVY STOCK BROKING LIMITED (KSBL), DILSUKHNAGAR is a branch under the

KARVY Stock Broking Limited segment of the KARVY Group which caters to stock broking
services and other broking related services. This KSBL branch has its head office at Banjara
hills, Hyderabad. It covers the suburban area of south-eastern Hyderabad and surrounding places,
DILSUKHNAGAR branch is one of the three branches of KARVY, spread across Hyderabad
and SECUNDERABAD. This branch was established in the year 2003 and since then it has been
very popular in its area and have a fair client base. KSBL DILSUKHNAGAR previously had
two offices, one for stock broking and other for gold loan. But recently both these offices has
been combined and are under one roof. This branch has approximately 40 employees including
the two departments that is gold loans and stock broking. Stock broking was my department for
Summer Internship where I was a trainee under the guidance of Mr. B. Srinivas Rao.
Mr. B. Srinivas Rao is the head of KSBL DILSUKHNAGAR branch who is also the cluster
manager of stock broking department and manages two branches i.e. DILSUKHNAGAR branch
and KUKATPALLY branch. The stock broking segment has two parts that deal with daily
trading. Mr. B. Srinivas Rao is liable to report to the Zonal manager of South Zone and the flow
will go (in reverse order) to country manager and finally to Chairman. There are various
functions performed by DILSUKHNAGAR branch namely

1. Depository Participant:
KSBL is registered with the National Securities Depository Ltd (NSDL) and Central Securities
Depository Ltd (CSDL) as DP which gives it the permission to hold the securities of investors in
electronic form at the request of the investors.

2. Trading Center:
KSBL offers online trading on both key platforms—National Stock Exchange and Bombay
Stock Exchange. They make trading safe to the maximum possible extent by accounting for
several risk factors and planning accordingly. They have created a very robust trading platform
that facilitates customers to trade online not only in equities, but also buy fixed deposits, mutual
funds, commodities, currencies and also participate in a public issue. The online platform enables
customers to view their portfolio online and also access various research reports and views on
stocks. It also provides them with a facility to communicate with research/advisory teams online.
3. PAN Center:
KSBL DILSUKHNAGAR branch also provides the TIN or PAN card facility to the investors
thus providing a services from the beginning to facilitate the easy process of investing.
The learning and the experience at the KSBL DILSUKHNAGAR branch during internship will
be reflected in this project.
EQUITY SHARE PRICES OF INFOSYS FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price Close Price No. of Trades
29-Apr-16 1209.15 1209.15 1223.55 1205 1208.1 103524
31-May-16 1267.6 1267.6 1266.75 1239 1248.65 125656
30-Jun-16 1176.85 1180.5 1184.5 1167.95 1170.8 117143
29-Jul-16 1077.5 1072.6 1076.75 1066.5 1073.85 96309
31-Aug-16 1040.4 1037.1 1045.75 1027.8 1035.85 131672
30-Sep-16 1029.2 1031.1 1043.9 1031.1 1036.05 66361
30-Oct-16 997.5 1001 1005.95 999.8 1002.1 14192
30-Nov-16 972.6 973 977 961.05 975.55 99676
30-Dec-16 992.35 998 1012 992.75 1010.6 100569
31-Jan-17 949.35 941.5 941.5 904.35 928.6 275395
28-Feb-17 1012.4 1011.85 1022.7 1009.25 1012.4 93851
31-Mar-17 1025.5 1023.25 1029.3 1008 1022.25 96201

SHARE PRICE FLUCTUATIONS IN INFOSYS

1400

1200

1000

800

600

400

200

0
1 2 3 4 5 6 7 8 9 10 11 12

INTERPRETATION:

In the financial year 2016-17 the equity share price values of INFOSYS are decreased as
compared to the starting month and finally stood at 1022.25 in the month of march.
DETERMINATION OF RISK AND RETURNS OF INFOSYS FOR THE FINANCIAL
YEAR 2016-17:

Date BSE INDEX INFOSYS BSE RETURNS INFOSYS RETURNS

31-Mar-16 10,185.12 1218.3
29-Apr-16 10,406.12 1208.1 0.021698 -0.00837
31-May-16 10,761.49 1248.65 0.03415 0.033565
30-Jun-16 11,029.45 1170.8 0.0249 -0.06235
29-Jul-16 11,585.96 1073.85 0.050457 -0.08281
31-Aug-16 11,834.89 1035.85 0.021485 -0.03539
30-Sep-16 11,700.65 1036.05 -0.01134 0.000193
30-Oct-16 11,878.89 1002.1 0.015233 -0.03277
30-Nov-16 11,195.09 975.55 -0.05756 -0.02649
30-Dec-16 11,036.44 1010.6 -0.01417 0.035928
31-Jan-17 11,659.94 928.6 0.056495 -0.08114
28-Feb-17 12,176.95 1012.4 0.044341 0.090243
31-Mar-17 12,631.90 1022.25 0.037362 0.009729

TOTAL RETURNS 0.223042 -0.15966

AVERAGE 0.018587 -0.0133
VARIANCE 0.000962 0.002413
S.D 0.031021 0.049124
COVARIANCE -0.00019
CORRELATION -0.12376
BETA -0.19599
ALPHA -0.00966

INTERPRETATION:

From the above Table, it is understood that the beta value of INFOSYS company is around -
0.19599 and that explains low volatility in the stock price. This low volatility in the stock price
indicates the low risk in the investments. Also the risk and returns value of INFOSYS is 0.05 and
-0.16 respectively.
EQUITY SHARE PRICES OF BHARTI AIRTEL FOR THE FINANCIAL YEAR 2016-
17:

Date Prev Close Open Price High Price Low Price Close Price No. of
29-Apr-16 372.7 371.85 372.6 360.5 363.6 67,395
31-May-16 355.9 356.9 357 347.15 351.4 1,27,062
30-Jun-16 356.2 358 370 355.45 366.8 45,742
29-Jul-16 371.9 371.9 371.9 360.45 362.05 50,222
31-Aug-16 331.85 332.25 336.9 328.85 331.65 85,057
30-Sep-16 315.7 315.75 316.5 308.1 314 1,06,566
30-Oct-16 318.85 319 321.5 318.05 318.7 2,102
30-Nov-16 324.85 325 326.8 323.8 324.6 54,474
30-Dec-16 303 301.3 307.1 300.1 305.65 44,259
31-Jan-17 345.65 349.05 353 343.05 348.2 121857
28-Feb-17 355.7 357 373.1 356.4 365.15 128765
31-Mar-17 351.2 350 352.3 345 350.05 57122

SHARE PRICE FLUCTUATIONS IN BHARTI AIRTEL

400
350
300
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12

INTERPRETATION:

In the financial year 2016-17, the equity share price values of BHARTI AIRTEL are increased
and decreased as compared to the starting month and finally stood at 350.05 in the month of
march.
DETERMINATION OF RISK AND RETURN OF BHARTI AIRTEL FOR THE
FINANCIAL YEAR 2016-17:

Date BSE INDEX BHARATI AIRTEL BSE RETURNS BHARTHI AIRTEL RETURNS
31-Mar-16 10,185.12 350.8
29-Apr-16 10,406.12 363.6 0.021698 0.036488
31-May-16 10,761.49 351.4 0.03415 -0.03355
30-Jun-16 11,029.45 366.8 0.0249 0.043825
29-Jul-16 11,585.96 362.05 0.050457 -0.01295
31-Aug-16 11,834.89 331.65 0.021485 -0.08397
30-Sep-16 11,700.65 314 -0.01134 -0.05322
30-Oct-16 11,878.89 318.7 0.015233 0.014968
30-Nov-16 11,195.09 324.6 -0.05756 0.018513
30-Dec-16 11,036.44 305.65 -0.01417 -0.05838
31-Jan-17 11,659.94 348.2 0.056495 0.139212
28-Feb-17 12,176.95 365.15 0.044341 0.048679
31-Mar-17 12,631.90 350.05 0.037362 -0.04135

TOTAL RETURNS 0.223042 0.018263

AVERAGE 0.018587 0.001522
VARIANCE 0.000962 0.003486
S.D 0.031021 0.059044
COVARIANCE 0.000584
CORRELATION 0.31901
BETA 0.607189
ALPHA -0.00976

INTERPRETATION:

From the above Table, it is understood that the beta value of BHARTI AIRTEL is around 0.607
and that explains low volatility in the stock price. This low volatility in the stock price indicates
the low risk in the investments. Also the risk and returns value of BHARTI AIRTEL is 0.06 and
0.018 respectively.
EQUITY SHARE PRICES OF CIPLA FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price Close Price No. of TRADES
29-Jan-16 577.8 579.95 592 578.1 585.1 23,053
29-Feb-16 524 528 528 505 514.15 36,757
31-Mar-16 512.35 513 518 507.9 511.95 50,606
29-Apr-16 528.25 527.2 538.4 527.1 537 22,057
31-May-16 473.55 475.4 479.25 471 472.65 48,764
30-Jun-16 502.45 505 506.8 499.45 501 33,509
29-Jul-16 520.65 522.4 535.5 520 527.4 34,230
31-Aug-16 576.1 581.05 587.5 570 572.95 45,605
30-Sep-16 602.85 601.85 603.9 562.25 580.05 97,402
30-Oct-16 575.15 578.65 580.6 575.4 578.75 1,919
30-Nov-16 569.15 570 573.25 563.5 566.6 53,550
30-Dec-16 564.85 565.6 573.45 565.6 568.8 18,035
31-Jan-17 582.25 581.55 583 572.6 575.35 46385
28-Feb-17 585.25 587.7 592.8 582.6 583.7 20865
31-Mar-17 598.35 598 598.9 591 592.95 48689

SHARE PRICE FLUCTUATIONS IN CIPLA

700

600

500

400

300

200

100

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

INTERPRETATION:

In the financial year 2016-17, the equity share price values of CIPLA are decreased and
increased compared to the starting month and finally stood at 592.95 in the month of march.
DETERMINATION OF RISK AND RETURN OF CIPLA FOR THE FINANCIAL YEAR
2016-17:

Date BSE INDEX CIPLA INDEX RETURNS CIPLA RETURNS

31-Mar-16 10,185.12 511.95
29-Apr-16 10,406.12 537 0.021698 0.048931
31-May-16 10,761.49 472.65 0.03415 -0.11983
30-Jun-16 11,029.45 501 0.0249 0.059981
29-Jul-16 11,585.96 527.4 0.050457 0.052695
31-Aug-16 11,834.89 572.95 0.021485 0.086367
30-Sep-16 11,700.65 580.05 -0.01134 0.012392
30-Oct-16 11,878.89 578.75 0.015233 -0.00224
30-Nov-16 11,195.09 566.6 -0.05756 -0.02099
30-Dec-16 11,036.44 568.8 -0.01417 0.003883
31-Jan-17 11,659.94 575.35 0.056495 0.011515
28-Feb-17 12,176.95 583.7 0.044341 0.014513
31-Mar-17 12,631.90 592.95 0.037362 0.015847

TOTAL RETURNS 0.223042 0.163056

AVERAGE 0.018587 0.013588
VARIANCE 0.000962 0.002465
S.D 0.031021 0.049649
COVARIANCE 0.000234
CORRELATION 0.152123
BETA 0.243474
ALPHA 0.009063

INTERPRETATION:

From the above Table, it is understood that the beta value of CIPLA is around 0.24 and that
explains low volatility in the stock price. This low volatility in the stock price indicates the low
risk in the investments. Also the risk and returns value of CIPLA is 0.05 and 0.16 respectively
EQUITY SHARE PRICES OF ICICI BANK FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price Close Price No. of
29-Jan-16 233.2 219 234.3 219 230.15 2,98,923
29-Feb-16 184.8 184.8 195.9 181.7 190.05 2,03,534
31-Mar-16 237.5 238.2 241.35 233.7 236.65 2,28,360
29-Apr-16 240.1 240.75 244.4 231.3 236.95 3,77,164
31-May-16 244.5 248.45 249 241.3 244.65 1,66,633
30-Jun-16 236.65 239.5 242.8 239.3 240.55 91,584
29-Jul-16 272 270.05 271.35 262.05 262.9 1,46,796
31-Aug-16 256.25 257.1 260.85 257 258 1,51,746
30-Sep-16 250.35 248.05 253.3 246.95 252.15 1,04,990
30-Oct-16 276.85 278.8 279.4 275.6 277.05 14,791
30-Nov-16 255.45 257.45 266.5 255.95 265.55 1,39,392
30-Dec-16 251.1 252 257.5 251.35 255.3 80,156
31-Jan-17 270.8 268.8 274 266.45 268.95 112432
28-Feb-17 278.85 278.95 280.1 275.7 276.35 98978
31-Mar-17 281.35 280.35 282.9 275.7 276.85 79199

SHARE PRICE FLUCTUATIONS IN ICICI BANK

300

250

200

150

100

50

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

INTERPRETATION:

In the financial year 2016-17, the equity share price values of ICICI BANK are increased
compared to the starting month and finally stood at 276.85 in the month of march.
DETERMINATION OF RISK AND RETURN OF ICICI BANK FOR THE FINANCIAL
YEAR 2016-17:

Date BSE INDEX ICICIBANK INDEX RETURNS ICICI RETURNS

31-Mar-16 10,185.12 236.65
29-Apr-16 10,406.12 236.95 0.021698 0.001268
31-May-16 10,761.49 244.65 0.03415 0.032496
30-Jun-16 11,029.45 240.55 0.0249 -0.01676
29-Jul-16 11,585.96 262.9 0.050457 0.092912
31-Aug-16 11,834.89 258 0.021485 -0.01864
30-Sep-16 11,700.65 252.15 -0.01134 -0.02267
30-Oct-16 11,878.89 277.05 0.015233 0.098751
30-Nov-16 11,195.09 265.55 -0.05756 -0.04151
30-Dec-16 11,036.44 255.3 -0.01417 -0.0386
31-Jan-17 11,659.94 268.95 0.056495 0.053467
28-Feb-17 12,176.95 276.35 0.044341 0.027514
31-Mar-17 12,631.90 276.85 0.037362 0.001809

TOTAL RETURNS 0.223042 0.170038

AVERAGE 0.018587 0.01417
VARIANCE 0.000962 0.002084
S.D 0.031021 0.04565
COVARIANCE 0.000904
CORRELATION 0.638675
BETA 0.939855
ALPHA -0.0033

INTERPRETATION:

From the above Table, it is understood that the beta value of ICICI BANK is around 1 and that
explains high volatility in the stock price. This high volatility in the stock price indicates the high
risk in the investments. Also the risk and returns value of ICICI BANK is 0.045 and 0.17
respectively.
EQUITY SHARE PRICES OF MARUTI FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price Close Price No. of Trades
29-Apr-16 3747.95 3742 3820 3725 3794.65 59631
31-May-16 4071.75 4060 4180 4055.05 4161.6 56298
30-Jun-16 4131.25 4179.9 4200 4145.55 4187.2 66636
29-Jul-16 4763.5 4751 4824 4720.55 4757.6 55850
31-Aug-16 5067.65 5063.9 5103.85 5036.3 5053.65 78969
30-Sep-16 5438.6 5420 5497.5 5382.6 5477.3 52712
30-Oct-16 5876.15 5900 5903.75 5880 5896.15 4781
30-Nov-16 5088.15 5110.55 5282 5100.1 5266 89569
30-Dec-16 5314.8 5347 5377.9 5303 5319.55 52154
31-Jan-17 5894.95 5889 5934.9 5875.5 5894.25 43066
28-Feb-17 5951.5 5946.3 6000 5914.8 5922.5 53664
31-Mar-17 5956.6 5952 6041 5940.1 6015.7 39654

SHARE PRICE FLUCTUATIONS IN MARUTI

7000

6000

5000

4000

3000

2000

1000

0
1 2 3 4 5 6 7 8 9 10 11 12

INTERPRETATION:

In the financial year 2016-17, the equity share price values of MARUTI are increased as
compared to the starting month and finally stood at 6015.7 in the month of march.
DETERMINATION OF RISK AND RETURN OF MARUTI FOR THE FINANCIAL
YEAR 2016-17:

Date BSE INDEX MARUTI INDEX RETURNS MARUTHI RETURNS

31-Mar-16 10,185.12 3716.3
29-Apr-16 10,406.12 3794.65 0.021698 0.021083
31-May-16 10,761.49 4161.6 0.03415 0.096702
30-Jun-16 11,029.45 4187.2 0.0249 0.006151
29-Jul-16 11,585.96 4757.6 0.050457 0.136225
31-Aug-16 11,834.89 5053.65 0.021485 0.062227
30-Sep-16 11,700.65 5477.3 -0.01134 0.08383
30-Oct-16 11,878.89 5896.15 0.015233 0.07647
30-Nov-16 11,195.09 5266 -0.05756 -0.10687
30-Dec-16 11,036.44 5319.55 -0.01417 0.010169
31-Jan-17 11,659.94 5894.25 0.056495 0.108035
28-Feb-17 12,176.95 5922.5 0.044341 0.004793
31-Mar-17 12,631.90 6015.7 0.037362 0.015737

TOTAL RETURNS 0.223042 0.514547

AVERAGE 0.018587 0.042879
VARIANCE 0.000962 0.003879
S.D 0.031021 0.062278
COVARIANCE 0.001307
CORRELATION 0.676591
BETA 1.358328
ALPHA 0.017632

INTERPRETATION:

From the above Table, it is understood that the beta value of MARUTI is around 1.35 and that
explains high volatility in the stock price. This high volatility in the stock price indicates the high
risk in the investments. Also the risk and returns value of MARUTI is 0.06 and 0.51 respectively
EQUITY SHARE PRICES OF BHEL FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price Close Price No. of Trades
29-Apr-16 125 125 126.8 123.15 125.4 28,943
31-May-16 120.7 121 123.3 119.5 120.5 58,248
30-Jun-16 121.95 123.85 128.2 123.2 127.7 63,294
29-Jul-16 149.45 148 148.9 145 145.9 42,775
31-Aug-16 140.55 140.1 141.65 138.15 139.1 33,735
30-Sep-16 133 133 135.35 131.9 134.7 35,695
30-Oct-16 138.95 140 140.2 138.5 139 4,123
30-Nov-16 129.2 129.95 131.45 129.1 130.15 36,282
30-Dec-16 118.75 119.5 121.6 119 121.2 32,038
31-Jan-17 138 138 141.1 136.2 137.05 34842
28-Feb-17 152.8 152.3 163.8 152.3 162.45 67119
31-Mar-17 164.45 164 165.95 162.4 162.85 35543

SHARE PRICE FLUCTUATIONS IN BHEL

180
160
140
120
100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12

INTERPRETATION:

In the financial year 2016-17, the equity share price values of BHEL are increased as compared
to the starting month and finally stood at 162.85 in the month of march.
DETERMINATION OF RISK AND RETURN OF BHEL FOR THE FINANCIAL YEAR
2016-17:

Date BSE INDEX BHEL INDEX RETURNS BHEL RETURNS

31-Mar-16 10,185.12 113.85
29-Apr-16 10,406.12 125.4 0.021698 0.101449
31-May-16 10,761.49 120.5 0.03415 -0.03907
30-Jun-16 11,029.45 127.7 0.0249 0.059751
29-Jul-16 11,585.96 145.9 0.050457 0.142522
31-Aug-16 11,834.89 139.1 0.021485 -0.04661
30-Sep-16 11,700.65 134.7 -0.01134 -0.03163
30-Oct-16 11,878.89 139 0.015233 0.031923
30-Nov-16 11,195.09 130.15 -0.05756 -0.06367
30-Dec-16 11,036.44 121.2 -0.01417 -0.06877
31-Jan-17 11,659.94 137.05 0.056495 0.130776
28-Feb-17 12,176.95 162.45 0.044341 0.185334
31-Mar-17 12,631.90 162.85 0.037362 0.002462

TOTAL RETURNS 0.223042 0.404466

AVERAGE 0.018587 0.033706
VARIANCE 0.000962 0.007208
S.D 0.031021 0.084902
COVARIANCE 0.001851
CORRELATION 0.702714
BETA 1.923263
ALPHA -0.00204

INTERPRETATION:

From the above Table, it is understood that the beta value of BHEL is around 2 and that explains
high volatility in the stock price. This high volatility in the stock price indicates the high risk in
the investments. Also the risk and returns value of BHEL is 0.085 and 0.404 respectively.
EQUITY SHARE PRICES OF ITC FOR THE FINANCIAL YEAR 2016-17:

Date Prev Close Open Price High Price Low Price CLOSE PRICE No. of trade
29-Apr-16 322.9 323.15 326.1 320.1 324.95 93,251
31-May-16 356.5 356 359.45 349.25 351.05 83,070
30-Jun-16 366.3 368 371.7 366.15 368.4 1,22,740
29-Jul-16 254.3 254.2 256.5 251.4 252.45 72,640
31-Aug-16 257.3 258.3 261.5 256.4 260.05 1,06,848
30-Sep-16 245.7 245.65 246.95 240.5 241.35 99,395
30-Oct-16 243.1 244 244 241 241.65 6,702
30-Nov-16 231.05 232 234.4 229.15 232.5 73,473
30-Dec-16 236 237.45 242.4 236.3 241.65 69,335
31-Jan-17 256.1 256.2 259.95 254.6 258.1 66752
28-Feb-17 264.6 263 264.6 260.9 262.2 95489
31-Mar-17 282.75 281 283 278.75 280.3 97864

SHARE PRICE FLUCTUATION IN ITC

400
350
300
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12

INTERPRETATION:

In the financial year 2016-17, the equity share price values of ITC are increased and decreased
compared to the starting month and finally stood at 280.3 in the month of march.
DETERMINATION OF RISK AND RETURN OF ITC FOR THE FINANCIAL YEAR
2016-17:

Date BSE INDEX ITC INDEX RETURNS ITC RETURNS

31-Mar-16 10,185.12 328.25
29-Apr-16 10,406.12 324.95 0.021698321 -0.01005
31-May-16 10,761.49 351.05 0.034150096 0.08032
30-Jun-16 11,029.45 368.4 0.024899898 0.049423
29-Jul-16 11,585.96 252.45 0.050456732 -0.31474
31-Aug-16 11,834.89 260.05 0.021485488 0.030105
30-Sep-16 11,700.65 241.35 -0.011342733 -0.07191
30-Oct-16 11,878.89 241.65 0.015233342 0.001243
30-Nov-16 11,195.09 232.5 -0.057564301 -0.03786
30-Dec-16 11,036.44 241.65 -0.014171391 0.039355
31-Jan-17 11,659.94 258.1 0.056494667 0.068074
28-Feb-17 12,176.95 262.2 0.044340708 0.015885
31-Mar-17 12,631.90 280.3 0.037361572 0.069031

TOTAL RETURNS 0.223042398 -0.08113

AVERAGE 0.018586866 -0.00676
VARIANCE 0.00096231 0.010518
S.D 0.031021125 0.102559
COVARIANCE -3.2059E-05
CORRELATION -0.010076702
BETA -0.033314637
ALPHA -0.00614165

INTERPRETATION:

From the above Table, it is understood that the beta value of ITC is around -0.03 and that
explains low volatility in the stock price. This low volatility in the stock price indicates the low
risk in the investments. Also the risk and returns value of ITC is 0.10 and -0.08 respectively.
PORTFOLIO 1:

COMPANIES RETURNS SD
INFOSYS -0.15966 0.049124
ICICI 0.17004 0.04565
CIPLA 0.16306 0.04965

0.2

0.15

0.1

0.05
RETURNS
0
INFOSYS ICICI CIPLA SD
-0.05

-0.1

-0.15

-0.2
CALCULATION OF PORTFOLIO RISK & RETURN:

COMPANIES RETURNS WI R*WI SD

INFOSYS -0.15966 0.33 -0.05269 0.049124
ICICI 0.17004 0.33 0.056113 0.04565
CIPLA 0.16306 0.33 0.05381 0.04965
TOTAL 0.057233
CORRELATION OF INFOSYS & ICICI -
BANK 0.29773
-
CORRELATION OF INFOSYS & CIPLA 0.41413
-
CORRELATION OF ICICI BANK & CIPLA 0.09554

PORTFOLIO RISK:

= √WA2σA2+WB2σB2+WC2σC2+2WAWBσAσBCOVAB+2WAWCσAσCCOVAC+2WBWCσBσCCOVBC

=√(0.33)2(0.049124)2+(0.33)2(0.04565)2+(0.33)2(0.04965)2+2(0.33)(0.33)(0.049124)(0.04565)(-
0.29773)+2(0.33)(0.33)(0.049124)(0.04965)(-0.41413)+2(0.33)(0.33)(0.04565)(0.04965)(-
0.09554)

=0.00344

INTERPRETATION:

From the above table the ICICI BANK has high returns with low risk has compared to other two
companies, the above portfolio has a return of 0.057233 and risk of 0.0034
PORTFOLIO 2:

COMPANIES RETURNS SD
BARATI
AIRTEL 0.018263 0.059044
BHEL 0.40447 0.0849
MARUTI 0.51455 0.66228

0.7

0.6

0.5

0.4
RETURNS
0.3 SD

0.2

0.1

0
BARATI AIRTEL BHEL MARUTI
CALCULATION OF PORTFOLIO RISK & RETURN:

COMPANIES RETURNS WI R*WI SD

BARATI AIRTEL 0.018263 0.33 0.006027 0.059044
BHEL 0.40447 0.33 0.133475 0.0849
MARUTI 0.51455 0.33 0.169802 0.66228
TOTAL 0.3038797
CORRELATION OF BARATI AIRTEL & BHEL 0.684992
CORRELATION OF BARATI AIRTEL &
MARUTI -0.02821
CORRELATION OF BHEL & MARUTI 0.297076

PORTFOLIO RISK:

= √WA2σA2+WB2σB2+WC2σC2+2WAWBσAσBCOVAB+2WAWCσAσCCOVAC+2WBWCσBσCCOVBC

=√(0.33)2(0.059044)2+(0.33)2(0.0849)2+(0.33)2(0.66228)2+2(0.33)(0.33)(0.059044)(0.0849)(0.6
84992)+2(0.33)(0.33)(0.059044)(0.66228)(-0.02821)+2(0.33)(0.33)(0.0849)(0.66228)(0.297076)

=0.125038

INTERPRETATION:

From the above table MARUTI has a high returns and risk has compared to the other two
companies .the above portfolio has a return of 0.3038797 and risk of 0.125038
PORTFOLIO 3:

COMPANIES RETURNS SD
ITC -0.08113 0.10256
CIPLA 0.16306 0.04965
BHEL 0.40447 0.0849

0.5

0.4

0.3

0.2 RETURNS

0.1 SD

0
ITC CIPLA BHEL
-0.1

-0.2
CALCULATION OF PORTFOLIO RISK & RETURN:

COMPANIES RETURNS WI R*WI SD

ITC -0.08113 0.33 -0.02677 0.10256
CIPLA 0.16306 0.33 0.05381 0.04965
BHEL 0.40447 0.33 0.133475 0.0849
TOTAL 0.160515
CORRELATION OF ITC & CIPLA -0.2925
CORRELATION OF ITC & BHEL -0.29377
CORRELATION OF CIPLA &
BHEL 0.317492

PORTFOLIO RISK:

= √WA2σA2+WB2σB2+WC2σC2+2WAWBσAσBCOVAB+2WAWCσAσCCOVAC+2WBWCσBσCCOVBC

= √(0.33)2(0.10256)2+(0.33)2(0.04965)2+(0.33)2(0.0849)2+2(0.33)(0.33)(0.10256)(0.04965)(-
0.2925)+2(0.33)(0.33)(0.10256)(0.0849)(-0.29377)+2(0.33)(0.33)(0.04965)(0.0849)(0.317492)

=0.01633

INTERPRETATION:

From the above table CIPLA has a good returns with a risk as compared to other companies. The
above portfolio has a return of 0.160515 and risk of 0.01633.
5. FINDINGS, SUGGESTIONS & CONCLUSIONS:

OVERALL PORTFOLIO RISK & RETURN

PORTFOLIO PORTFOLIO RETURN PORTFOLIO RISK RATIO RANK
P-1 0.057233 0.00344 16.6 I
P-2 0.3038797 0.125038 2.43 III
P-3 0.160515 0.01633 9.82 II

0.45

0.4

0.35

0.3

0.25
portfolio return
0.2
portfolio risk
0.15

0.1

0.05

0
p-1 p-2 p-3

INTERPRETATION:

 From the above table , it is understood that portfolio-1 has a good returns when compared
to other two portfolio’s i,e,, portfolio-2 and portfolio-3.
 The highest portfolio risk is for portfolio-2 with 0.125 and with lowest portfolio risk i.e.,
for portfolio-1 with 0.003
 The ratio between returns to risk is high for portfolio-1 with 16.6 and ranked first among
the three portfolios
 Portfolio-3 is ranked as two with 9.82 and finally portfolio-2 ranked as three with 2.43
SUGGESTIONS:

1. It is suggested to the investors to choose PORTFOLIO-2 to safe their investments even in market
loss
2. If investors want to get more returns bearing more risk he is suggested to PORTFOLIO-1 and
PORTFOLIO-3
3. The stock market is characterized by the trade-off between risk and return. The higher the risk the
investor is willing and able to take, the higher the potential rewards from the investment.
Therefore, if a particular investment offers you high returns, it is an indication that it will come
with a high risk burden.
4. A part of the selection process, investor should determine the risk level of the stock as well as
their risk tolerance, if they are looking for high returns they should be able to meet high potential
losses as well.
5. There is no safe investment that will provide investors with high returns over a short period of
time, therefore, investor should direct their resources toward long-term investment that are more
likely to reward you for the patience with high returns.
CONCLUSION:

The study on portfolio analysis at selected industries was undertaken with an objective of getting an
insight into the concept of investment, the risks and the returns involved. The study aims to determine the
risk involved in the investment and the factors affecting the risk. The study is confined to the different
sectors.

The study is done using the NIFTY values and other related data from the stock exchange. The entire
study is based on the secondary data only. The analytical tools used for the study are risk and return
analysis. The study is done at Hyderabad for a period of 45 days. The study had few limitations which
were taken care of.

Finally, it is suggested to the companies to maintain a low beta value around 1 in order to attract more
number of the investors. It should also see that the stock prices do not fluctuate a lot which may cause
suspicion in the investors and reduce their interest to invest in the company. The companies should also
go for frequent portfolio checking to maintain the higher returns.
BIBLIOGRAPHY

BOOKS:

SECURITY ANALYSIS AND PORTFOLIO MANGEMENT- PANDIAN

SECURITY ANALYSIS- GRAHAM AND DODD

WEBSITES:

 www.moneycontrol.com
 www.nseindia.com
 www.wikipedia.com
 www.investopedia.com
 www.seb.gov.in