A COMPARATIVE STUDY ON THE EQUITY AND EQUITY DERIVATIVE (FUTURE) STOCKS OF THREE SELECTED COMPANIES ITC, ACC AND

ICICI BANK WITH REFERENCE TO KOTAK SECURITIES LIMITED

KOTAK SECURITIES LIMITED

A COMPARATIVE STUDY ON THE EQUITY AND EQUITY DERIVATIVE (FUTURE) STOCKS OF THREE SELECTED COMPANIES ITC, ACC AND ICICI BANK WITH REFERENCE TO KOTAK SECURITIES LIMITED

A report submitted in partial fulfillment of the requirements of the MBA program (The Class of 2011-2013) THE ICFAI UNIVERSITY TRIPURA

TABLE OF CONTENTS
CONTENTS Acknowledgements Abstract Objectives Chapter 1 1.1 Company profile 1.2 Introduction 1.3 3C Report 1.4 SWOT Analysis 1.5 Business Objectives Chapter 2 2.1 Introduction 2.2 Importance of the Internship area 2.3 Description of assignments undertaken 2.4 Goals and Targets 2.5 Expected Learning from the Internship Chapter 3 3.1 Strategy Implementations 3.2 Findings 3.3 Analysis of performance 3.4 Limitations 3.5 Conclusions Chapter 4 4.1 Annexure 4.2 References 49-73 74 34-35 36-45 46 47 48 17-25 26-27 27-30 31 32-33 4-7 8-9 10-14 15-16 16 PAGE NO. 1 2 3

Acknowledgements
This project bears imprint of all those who have directly or indirectly helped and extended their kind support in completing this project.

At the time of making this report I express my sincere gratitude to all of them.

I am grateful to Amit Kumar Saha (HR, Kotak securities Ltd.) for giving me a chance to work with the Company.

I am extremely thankful and obliged to my Company guide Mr. Biswadeep Chakraborty for providing streamed guidelines since inception till the completion of the project.

I am also thankful to my faculty guide Mr. Dhananjoy Datta for the effective guidelines and helping attitude since inception till the completion of the project.

At this moment I also thank the almighty God for the blessing showed upon me, parents for their support and care and also my friends for their valuable suggestions.

This project report is a collective effort of all and I sincerely remember and acknowledge all of them for their excellent help and assistance throughout the project.

Date: 23-07-2012 Agartala Chandni Saha

Abstract
In the current economic scenario interest rates are falling and fluctuating in the stock market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because of investments are risky in nature and investors have to consider various factors before investing in any stock. These factors include risk, return, and volatility of stocks. For comparing equity stocks with equity derivative stocks easily three companies equity and equity derivative stocks are taken. The main objective of comparing equity stocks with equity derivative stocks is to analyze the performance of equity stocks with market index and compare them with equity derivatives by using risk, return and beta as a parameter. Primary and secondary data were taken for calculating risk, return and beta. Analysis has done on percentage method for comparing equity stocks with equity derivative stocks. Compare to equity stocks, equity derivative stocks are less risky and return also less. In terms of margin, duration, expiry date of contracts and lot size equity stocks are more effective than equity derivative stocks. The study will guide the investor and give them information about pros and cons of investing in equity stock and equity derivative stocks and also provide knowledge about how to measure the risk and return of a particular stock.

Objectives
To compare three selected companys Equity and Equity Future stocks in respect to their risk and return. To differentiate selected companys Equity and Equity Future stocks in terms of types of margin, duration, lot sizes, expiry date of contract. To provide information about pros and cons of investing in Equity and Equity Future stocks of those selected companies.

Chapter 1
1.1 Company profile History of Kotak Mahindra Group:
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak &Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. 1986: Kotak Mahindra Finance Limited starts the activity of bill discounting. 1987: Enters the base and hire purchase market. 1990: Auto finance division was started. 1991: Investing banking was started. 1992: Enters funds syndication sector. 1995: Brokerage and distribution businesses incorporated into a separate company Kotak Securities. 1996: The auto finance business was hived off into a separate company- Kotak Mahindra Primus Limited, for financing ford vehicles. 1998: Enters the mutual fund market with launch of Kotak Mahindra Company. 2000: Kotak Mahindra ties up with old mutual for the life4 insurance business. Kotak Securities launches kotaksecurities.com- its online broking site. 2003: Kotak Mahindra finance Limited converts to bank. Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs. 3,200 crores, employs around 10,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 300 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 2.6 million customer accounts. Kotak Mahindra is one of India's leading financial conglomerates, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. As on March 31, 2007, the group has a net worth of over Rs.3,200 crore, and the AUM across the group is around Rs. 224 billion and employs over 10,800 employees in its various businesses. With a presence in 300 cities in India and offices in New York, London, Dubai, Mauritius and Singapore, it services a customer base of over around 2.6 million.

The group specializes in offering top class financial services, catering to every segment of the industry. The various group companies include:

Kotak Mahindra Capital Company Limited Kotak Mahindra Bank Kotak Securities Limited Kotak Mahindra Asset Management Company Limited Kotak Life Kotak Mahindra Wealth Management

The company has a full-fledged research division involved in Macro Economic studies, Sectoral research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news.

History of Kotak Securities Limited:

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices, and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore. They process more than 400000 trades a day which is much higher than some of the renowned international brokers. The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE). Their operations include stock broking services for trading in stock markets through branches & internet and distribution of various financial products including investments in IPOs, Mutual Funds and Currency Derivatives. Currently, Kotak Securities is one of the largest broking houses in India with substantial geographical reach to Asia Pacific, Europe, Middle East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under Management (AUM) as of 31st Dec, 2011. Kotak securities have 25% equity participation from Goldman Sachs. Kotak securities have been the largest in IPO distribution and were ranked no.1 in the year 20032004 as book running lead managers in IPOs by prime database. The core strengths are the expertise in equity research and wide retail distribution network. It has an outstanding research division involved in macro economic studies, industry and company specific equity research

with analysts specializing in particular economic sectors and large cap stocks. Kotak securities manage assets over rupees 1200 crores under portfolio management services.

Organizational Structure of Kotak Securities Limited:

D. Kannan Managing Director

Manoj Agarwal Head-Internal Audit

Manish Kumar Head-Human Resources

Trivikram Kamath CFO & Head Operation & IT

Jaimit Doshi Head-Marketing

Sandeep Chordia Head-Compliance

Hitesh Sindhwani Head-Customer Service & TPD

Devdas Puthran Head-Online Direct

B.Gopkumar Head-Retail Sales

Ashish Nanda Head-Online Direct

Sanjay Tantia Head-Proprietary Trading

Trivikram Kamath CFO & Head Operation, Finance & IT

Clifford Torres Head-IT, Software

Mukul Rathi Head-Risk Mgmt & Branch Ops (Mah, Goa)

Shailesh Kumar Head-Online Risk and Operations

K. N. Srikrishnan Head-PMS Ops, DP, Primary Mkt & Branch Ops (except Mah,Goa)

Kulin Thaker Head-IT & Networking

Girish Mhatre Head-IT, Software EBroking

Mahesh Nirwan Head-A/C opening & sub broking Ops, Settlements

Pradeep Kumar M. Head- Legal

Vishwanath Eswar Head- Treasury, Accounts & Finance

1.2 Introduction of the present IP Company

Kotak Securities Ltd. (Agartala branch) was established on 10th August 2006. The main branch of the company is in Mumbai. Kotak Securities Ltd., a 100% subsidiary of Kotak Mahindra bank, is one of the oldest and largest stock brokers in the country. There are two important stock exchanges in India viz. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Kotak Securities Ltd. mainly deals with NSE. NSE was established in 1994 and provides a nationwide trading facility for equities, debts and hybrids. It is a ring less national computerized exchange and it has two segments, the capital market segment and the wholesale debt market segment. SEBI regulates the business in stock exchange and other securities market. Indices are the statistical measure of change in securities market. Some of the indices in which Kotak Securities Ltd.(Agartala) mainly deals with are Nifty, Bank Nifty, CNX IT, Sensex and sectoral indices, such as Auto, FMCG, Metal, IT, Bank. Nifty is the most rigorously constructed stock market index. Some of the facts about Nifty are: It reflects the price movement of 50 stocks selected on market capitalization and liquidity. It has a base value of 1000 points. The base period selected for Nifty index is close price on November 3, 1995. It is a value weighted index but uses the total market capitalization. Kotak Securities Ltd. offers a diverse range of financial instruments like: Shares. Derivatives. Mutual funds. IPOs. Depository services. Primary debt. Mainly used software by Kotak securities limited are as follows: BOSS: It is also called Back Office Support System. All the office related works and informations are recorded and audited by the operating system BOSS.

CRPS: It stands for Centralized Receipts and Payments Systems by which all the financial transactions of the company take place. Funds can be accepted from clients only in the form of A/c Payee Cheques drawn in favor of Kotak Securities Ltd.. Cheques received for pay in are captured in CRPS and deposited in bank with pay slip printed from CRPS. DD is accepted only with bank letter giving details of source of funds. More than one bank can be mapped/updated in CRPS for receipts.

KRISP: It stands for Kotak human resource information system portal. It contains details on organization, their various employee policies, all employee forms, information on the organizational structure-key personnel and much more.

TERMINAL: The Terminal is main area from which the total trading is take place. The selling and buying of stock is done here through computer. The software name is ODIN Client 10.0.0.2(Integrated). The computer keyboard is the main functional area.

More than 100 products are customized at client level and it provides payment gateway with Banks, namely: Kotak Mahindra Bank. ICICI Bank. HDFC Bank. City Bank. Axis Bank. Kotak Securities Limited offers stock broking services and distributes financial products in India. The company offers secondary market broking services to foreign and Indian institutional investors in Indian equities and derivatives, including local shares and global depository receipts. It also provides professional portfolio management services to high net-worth individuals and corporate. In addition, the company involves in the distribution and placement of a range of financial products, which include company fixed deposits, mutual funds, initial public offerings, private and secondary placement of debt and equity, insurance products, and small savings schemes. Further, it offers depository services, including trading and settlement of dematerialized shares. The company was founded in 1994 and is based in Mumbai, India. Kotak Securities Limited operates as a subsidiary of Kotak Mahindra Bank Limited.

1.3 3C Report of the Company 1.3.1 Introduction of the company:

Kotak Securities Limited, a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %.Kotak Securities Limited is one of the largest players in distribution of IPOs - it was ranked number One in 2003-04 as Book Running Lead Manager in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia April 2004.The Company has a full-fledged Research division involved in macroeconomic studies, sectoral research and Company specific equity research combined with a strong and well networked sales force which helps deliver current and up-to-date market information and news. The Company has 113 branches servicing around 100000 customers, through offices and a large franchisee network. Its has an Online presence through Kotak street.com, where we offer Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over Rs. 1700 crores through its Portfolio Management Services (PMS) servicing high net worth clients with a large investible surplus through its preferred client services in the mass affluent and wealth management segments. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. Kotak Securities has 813 outlets servicing more than 3, 15,000 customers and coverage of 277 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets around 2300 crores of Assets Under Management (AUM) .The portfolio Management Services provides top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.

Main areas of business Kotak Securities are:

Institutional broking business: This service primarily covers secondary market

broking. It caters to the needs of foreign and Indian institutional investors in Indian equities Kotak Securities institutional business also incorporates a comprehensive research cell with sector analysts who cover all the major areas of Indian economy.

Private client group: Private client group is a special investment division for high net
worth individuals. Nonresident Indian investors trust corporate and banks the investments product range at private client group is among the widest in the country and covers debt and equity, mutual funds and specialized structured investment products.

Client money management: This division provides professional portfolio

management services to high net worth individuals and corporate. Efficient fund management is maintained at all times as well as complete accountability and transparency. Its expertise in research and stock broking gives it the right perspectives from which it provide its clients with investments advisory services that benefits the clients.

Retail distribution of financial products: Kotak Securities has a comprehensive

retail distribution network, comprising about 7000 agents, 13 branches and over 20 franchisees across India. This network is used for the distribution and placements of a range of financial products that includes company fixed deposits, mutual funds, initial public offerings, equity and small saving schemes.

Depository services: Kotak Securities is a depository participant with national

securities depository limited for trading and settlement of dematerialized shares. Since it is also in the broking business investors who use its depository services get dual benefit.

Online trading: Kotak Securities online broking service kotaksecurities.com offer

services for retail investors who like to trade on net its unique product offering securities as margins and its market watch facility with real time prices combined in an order facility not offered by and other web site at present.

1.3.2 Customers of the company:

Kotak securities investing from customers perspective and make recommendations based on customers needs. One of their important goals is to simplify investing for customer, along with this they also provide long term values to their customers. Kotak securities have a million reasons for customers to choose them. Listed below are a few:

Stability: They are a subsidiary of Kotak Mahindra Bank and one of the oldest and
largest stock broking firms in the Industry. They have been the first and only NBFC to receive the license to be converted into a bank.

Innovators in the Industry: They have been the first in providing many products and
services which have now become industry standards. They are the first to provide Margin Financing to the customers, first to enable investing in IPOs and Mutual Funds on the phone, providing SMS alerts before execution of depository transactions launching of Mobile application to track portfolio.

Reliability: Their accolades are a testimony to their services and high standards.
They have been awarded as: Best Broker in India by Finance Asia for 2010 & 2009. UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker (National) for the year 2009. Best Brokerage Firm in India by Asia money in 2009, 2008, 2007 & 2006. Best Performing Equity Broker in India CNBC Financial Advisor Awards 2008. Avaya Customer Responsiveness Awards (2007) in Financial Services Sector. The Leading Equity House in India' in Thomson Extel Surveys Awards for the year 2007. Euro money Award (2006 & 2007) - Best Provider of Portfolio Management: Equities.

Value: Whether you are a customer with a small or large wallet size, you can expect
them to bring value to you in every form like: Quality Research Quick trade execution Low brokerages Accounts that suit your investment profile Risk Profiler Superior Customer Service

Service: They believe in high standards of service and that's precisely what we offer. It's
an honor to be awarded the most customer responsive company award in the Financial Institution sector by AVAYA Global Connect Award both in 2006 and 2007.

Robust Technology: They have developed their own proprietary trading platform
which is robust and among the best in the industry. They have more than 150 technology professionals constantly working on upgrading and speeding up all our systems.

Centralized Risk Management System: Unlike many other players they have a
centralized risk management system. This allows them to offer the same levels of service to customers across all locations.

Exceptional Research: Unlike most other competitors they have their own in house
research team. There in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the scripts that have a high potential of providing you good returns. Their investors get research Technical, Fundamental, Derivatives, Macro-economic and mutual fund research.

Large Presence: They are present in 448 cities with 1416 outlets all over the country.
Their employee strength extends about 3800.

1.3.3 Competitors of the company:

There are so many competitors of Kotak Securities Limited but the top competitors are showing below:
Company Current price Book Value P/E Ratio Market Capital (Rs. In Crores) Dalal Street Investments Ltd. Pilani Investment and Industries Corporation Ltd. Industrial & Prudential Investment Company Ltd. Bajaj Auto Finance Ltd. Bajaj Holdings & Investment Ltd. Shriram City Union Finance Ltd. Nalwa Sons Investments Ltd. Bajaj Finserv Ltd Sundaram Finance Ltd. 689.90 670.35 99.88 321.84 130.36 10.48 9,981.72 3,723.92 710.00 607.31 22.38 364.67 744.25 314.84 11.39 3,902.00 878.15 778.60 487.00 435.64 8.93 15.27 3,628.43 8,665.31 1,475.00 415.74 17.34 85.81 1,478.75 878.35 27.35 1,169.51 18,495.10 -198.71 0.00 416.14

Competitor Stock broking firms of Kotak Securities Limited, Agartala branch are following: Motilal Oswal Angel Stock Broking Share Khan Stock Holding Karvey Stock Broking Prabhudas Liladher Edeiweiss

1.4 SWOT analysis of the Company

Strengths:
Kotak Securities Ltd. is one of the largest players in distribution of IPOs. Its brokerage charges are almost half of those with ICICI Web trade. Highly co-operative and skilled staff. Sales oriented organization. Aggressiveness of sales force in selling products. The company has expertise in managing big business. Effective and wider distribution network It has 113 branches serving around 1, 00,000 people. It is currently managing assets worth Rs.1700 crores. Product designed for every area of personal. The office hours of the company for the customers are from 9am to 6pm. The company enjoys a very high brand loyalty and recall value among its customers. The company has a presence in all metros as well as in the most of the major cities in the country.

Weaknesses:
No presence in the rural and semi-urban segment. Lack in making follow-ups. Lack of corporate agents. Lack of customer services and promotional activities.

Opportunities:
There is continuous growth in this sector. People have started turning towards the organization as they know that facilities are far better than the others. Market is fully vacant to capture because the branch has recently setup its business.

Threats:
Competition in the sector is increasing with the entry of lots of private giants with the collaboration of foreign giants. Selling attitude for the company always has to be maintained in order to compete with other companies. Continuous follows up of the clients and customers. As other organizations like ICICI web trade, India Info line, etc. are there in the city so it is a little bit difficult for them to capture the market.

1.5 Business Objectives of the Company

Kotak believe that ethics of a company help to deliver value to all the stake holders and lead to success. Kotak Securities adheres to strict ethical practices and compliance that comprise of commitments towards customers, associates, stakes holders and employees. Strong Internal Control team ensures that every individual delivers based on policies set by the company and there is no compromise on the quality. Centralized Risk Management division regularly monitors the position of customers' portfolios to reduce the loss at the time of market volatility.

Chapter 2
2.1 Introduction
While discussing about stocks and shares one of the first things that come to mind is the stock market. But not all companies shares are traded in a stock market. The capital stock or stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is different from the property and the assets of a business which may fluctuate in quantity and value. The stock of a business is divided into multiple shares.

Stock Market:
A stock market has two main functions. The first function is to provide companies with a way of issuing shares to people who want to invest in the company. This can be illustrated by an example: Suppose a company has a mining lease over an area with some rich ore deposits. It wants to exploit these deposits, but it doesnt have any equipment. To buy the equipment it needs money. One way to raise money is through the stock market. The company issues a prospectus, which is a sort of advertisement informing people about the prospects of the company and inviting them to invest some money in it. When the company is established on the stock market, interested investors can become part-owners of the company by buying shares. If the company operates at a profit, shareholders benefit in two ways-through the issuing of dividends in the form of cash or more shares, and through growth of in the value of the shares. On the other hand, if the company does not operate at a profit, the shareholders will probably lose money. The second function of the stock market related to the first, is to provide a venue for the buying and selling of shares/stocks.

Types of Stock Market:

Primarily there are two types of stock markets the primary market and the secondary market. Basically the primary market is the place where the shares are issued for the first time. So when a company is getting listed for the first time at the stock exchange and issuing shares this process

is undertaken at the primary market. That means the process of the Initial Public Offering or IPO and the debentures are controlled at the primary stock market. On the other hand the secondary market is the stock market where existing stocks are bought and sold by the retail investors through the brokers. It is the secondary market that controls the price of the stocks. Generally when talk about investing or trading at the stock market it means trading at the secondary stock market. It is the secondary market where people can invest and trade in the stocks to get the profit from their stock market investment. Now the Indian stock markets can be divided into further categories depending on various aspects like the mode of operation and the diversification in services. First of the two largest stock exchanges in India can be divided on the basis of operation. While the Bombay stock exchange or BSE is a conventional stock exchange with a trading floor and operating through mostly offline trades, the National Stock Exchange or NSE is a completely online stock exchange and the first of its kind in the country. The trading is carried out at the National Stock Exchange through the electronic limit order book or the LOB. With the immense popularity of the process and online trading facility other exchanges started to take up the online route including the BSE where people can trade online as well. But the BSE is still having the offline trading facility. Apart from these classifications there are also different types of stock market in India and the classification is made on the type of instrument that is being traded at the market. Both the Bombay Stock Exchange and the National Stock Exchange have these types of stock markets.

Equity market or the cash segment:

The first type of market is the equity market or the cash segment where stocks are traded. In this type of trading the buyers of the stocks book a buying order with a bid price and the order are executed through the broker at a negotiated ask price offered by the sellers at the market. In most cases the deal is closed or the stocks are brought at the best available ask price. In this type of trading the buyer pays the entire amount of the value of the stocks that is determined by multiplying the number stocks with the current price of the stock. Once the buyer pays the entire

amount along with the brokerage and taxes of the transaction the stocks are deposited to the DP account of the buyer.

Derivative Market:
A derivative instrument is a contract between two parties that specifies conditions (especially the dates, resulting values of the underlying variables, and notional amounts) under which payments are to be made between the parties. In the derivative market trading is done mainly through two instruments the Future contract and the Option contract. In both these types of contracts the stocks are bought and sold in lot. The number of stocks for each lot depends on the valuation of the stock and the valuation of the lot is determined by the number of the stocks in a lot multiplied with the current market price of the stock. For trading in derivative market people have to buy either the future contract or the option contract. In a future contract it is agreed that specific amount of a commodity or financial asset would be bought or sold at a specified future date at an agreed price. The commodity can be wool, wheat, gold etc. The financial assets can be stocks, currency or even just a statistical number like the stock market index or interest rates. Accordingly, the types of futures contracts may be: Commodity Futures Stock Futures or Stock Market Futures Currency Futures Index Futures Interest rate Futures

Equity future contract is an agreement between the buyer and the seller to buy and sell stocks at a certain date in future at a price determined today. There are 3 future contracts available anytime in the market. They are near month which is current month future contracts, middle month which is next month future contract, and far month which is 2 months down futures contracts. For example, there could be Feb, Mar, and Apr contracts available in the month of Feb. Equity futures are traded on stock exchanges and are standardized instruments. Equity futures are settled every day.

To understand the comparison between equity and equity future stocks, three companies equity stocks and equity future stocks are selected. These three companies company profiles are shown below:

Company Profile of ICICI Bank Ltd.

ICICI Bank Ltd is a major banking and financial services organization in India. The Bank is the second largest bank in India and the largest private sector bank in India by market capitalization. They are a publicly held banking company engaged in providing a wide range of banking and financial services including commercial banking and treasury operations. The Bank and their subsidiaries offers a wide range of banking and financial services including commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking and treasury products and services. They offer through a variety of delivery channels and through their specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. They have subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and their American Depositary Receipts (ADRs) are listed on the New York Stock Exchange. The Banks is the first Indian Bank listed on New York Stock Exchange. ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group with the name ICICI Banking Corporation Ltd. The initial equity capital was 75.0% by ICICI and 25.0% by SCICI Ltd, a diversified finance and shipping finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became a wholly-owned subsidiary of ICICI. In September 10, 1999, the name of the Bank was changed from ICICI Banking Corporation Ltd to ICICI Bank Ltd In March 10, 2001, ICICI Bank acquired Bank of Madura, an old private sector bank, in an all-stock merger. ICICI Ltd along

with their wholly owned retail finance subsidiaries, namely ICICI Capital Services Ltd and ICICI Personal Financial Services Ltd amalgamated with the Bank with effect from May 3, 2002. In May 2003, the bank acquired the entire paid-up capital of Transamerica Apple Distribution Finance Pvt Ltd which primarily engaged in financing in the two-wheeler segment. In September 12, 2003, the Bank incorporated ICICI Bank Canada as a 100% subsidiary company. In August 2005, the Bank acquired additional 6% of the equity share capital of Prudential ICICI Asset Management Company Ltd and Prudential ICICI Trust Ltd from Prudential Corporation Holdings Ltd and thus these two companies became the subsidiaries of the Bank. During the year 2006-07, ICICI Bank Canada incorporated ICICI Health Management Inc as a subsidiary company. In April 2007, Sangli Bank Ltd merged with the Bank with effect from April 19, 2007. During the year 2007-08, the Bank increased their branches & extension counter from 755 Nos to 1,262 Nos, including the addition of about 200 branches through the merger of Sangli Bank. They increased their ATM network from 3,271 ATMs to 3,881 ATMs. They launched mobile banking service enabling a wide range of banking transactions using the mobile phone. They also received licenses for 580 additional branches from RBI. They increased their ATM network to 4,713 ATMs from 3,881 ATMs. During the year 2009-10, the Bank increased their branches & extension counter from 1,419 Nos to 1,707 Nos. They also increased their ATM network from 4,713 ATMs to 5,219 ATMs. ICICI Wealth Management Inc., a subsidiary of ICICI Bank Canada, has been dissolved effective December 31, 2009. In January 2010, the Bank and First Data, a company engaged in electronic commerce and payment services, formed a merchant acquiring alliance and a new entity named ICICI Merchant Services, 81% owned by First Data, was formed, which acquired ICICI Bank's merchant acquiring operations for a total consideration of Rs. 3,744 million. In May 2010, the Bank approved the scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs. 3,000 crore. Each 118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In August 2010, as per the scheme of amalgamation, Bank of Rajasthan was amalgamated with the Bank with effect from the close of business on 12 August 2010. The merger of Bank of Rajasthan added over 450 branches to the network. Including these, their branch network increased from 1,707 branches at March 31, 2010 to 2,529 branches at March 31, 2011. They also increased their ATM network from 5,219 ATMs at March 31, 2010 to 6,055 ATMs at March 31, 2011.

Company Profile of ITC Ltd.

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's name were removed effective September 18, 2001 and the Company was rechristened as 'ITC Limited'. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and

solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 4, 10, 000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. ITC Limited operates in five business segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. The FMCG segment includes Cigarettes, which consists of cigarettes, cigars and smoking mixtures, and others, which include branded packaged foods (staples, biscuits, confectionery and snack foods), garments, educational and other stationery products, matches, agarbattis and personal care products. The hotel segment includes hoteliering. The paperboards, paper and packaging segment includes paperboards, paper, including specialty paper, and packaging including flexible. The Agri business segment includes agri commodities, such as soya, coffee and leaf tobacco. Its Agri Business markets agri commodities in the export and domestic markets. Other includes information technology services, filter rods etc. In September 2011, it acquired Russell Credit Ltd. On March 26, 2012, it purchased entire share capital of Technico Pty Ltd.

Company Profile of ACC Ltd.

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the countrys road transport network services for inward and outward movement of materials and products. Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices. ACC plants, mines and townships visibly demonstrate successful endeavors in quarry rehabilitation, water management techniques and greening activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing. ACC has taken purposeful steps in knowledge building. The main beneficiaries are youth from remote and backward areas of the country. ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India.

2.2 Importance of the Internship area

Saving the money is not enough. Each of us also needs to invest ones savings intelligently in order to have enough money available for funding the higher education of ones children, for buying a house etc. The stock market is one of the most important sources for companies as well as for people to raise money. This allows businesses to be publicly traded, or raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors gives them the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. Some companies actively increase liquidity by trading in their own shares. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'tre of central banks. Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased prosperity. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. The general public interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process.

Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. The major part of this adjustment is that financial portfolios have gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc.

2.3 Description of assignments undertaken

To understand the stock market, need to know about National Stock Exchange (NSE), stock indices, the equity market and future market, their advantages and disadvantages, margins in the stock market, participants.

National Stock Exchange (NSE): The National Stock Exchange is India's largest financial
market. Established in 1992, the NSE has developed into a sophisticated, electronic market, which ranks third in the world for transacted volume. The NSE conducts transactions in the wholesale debt, equity and derivative markets.

Index: An Index is used to give information about the price movements of products in the
financial, commodities or any other markets. Stock market indices are meant to capture the overall behavior of the equity markets. The stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. The blue chip index of NSE is S&P CNX Nifty. Major Indices in India: These are few popular indices in India. BSE-30 Sensex BSE-100 BSE-200 BSE-500 S & P CNX Nifty S & P CNX Nifty Jr. S & P CNX Midcap S & P CNX 500

The advantages of equity stocks are:

It is a permanent source of funds without any repayment liability. It does not involve obligatory dividend payment. It forms the basis of further long term financing in the form of borrowing related to the credit worthiness of the firm. The shareholders with limited liability exercise control and share other ownership rights in the income of the firm. Investors or equity stockholders may enjoy the following advantages: Equity stockholders are the residual claimant of the profits after meeting all the fixed commitments. The company may add to the profits by trading on equity. Thus equity capital may get dividend at high in boom period. Equity stockholders have voting rights and elect competent persons as directors to control and manage the affairs of the company.

The disadvantages of equity stocks are:

The cost of equity capital is high, usually the highest. The rate of return required by equity shareholders is generally higher, than the rate of return required by other investors. Equity shareholders are the last to be paid, for payment of divided during the life time of the company and payment of capital at the event of liquidation of the company. As a result, they are facing the maximum risk from investor's point of view. Whenever new equity shares are issued, it dilutes the existing shareholders' earnings per share (EPS) if the profits don't increase immediately in proportion to the increase in the number of equity shares. Whenever new equity shares are to be issued, these are first offered to the existing shareholders because Companies Act gives them a pre-emptive right to retain their proportionate ownership. Disadvantages to investors: The dividend on equity shares is subject to availability of profits and intention of the Board of Directors and hence the income is quite irregular and uncertain. They may get no dividend even three are sufficient profits. During recession or depression periods, the profits of the company come down and consequently the rate of dividend also comes down. Due to low rate of dividend and

certain other factors the market value of equity shares goes down resulting in a capital loss to the investors. In case, the company goes into liquidation, equity shareholders are the worst suffers. They are paid in the last only if any surplus is available after every other claim including the claim of preference shareholders is settled. It is evident from the advantages and disadvantages of equity share capital discussed above that the issue of equity share capital is a must for a company, yet it should not solely depend on it. In order to make its capital structure flexible, it should raise funds from other sources also.

The advantages of future stocks are:

If price moves are favorable, the producer realizes the greatest return with this marketing alternative.

No premium charge is associated with futures market contracts. It is possible to open short as well as long positions. Position can be reversed easily. Lead to high liquidity.

Advantages of Investors: The commission charges for futures trading are relatively small as compared to other type of investments. Futures contracts are highly leveraged financial instruments which permit achieving greater gains using a limited amount of invested funds. It is possible to open short as well as long positions. Position can be reversed easily.

The disadvantages of future stocks are:

Leverage can make trading in futures contracts highly risky for a particular strategy. Futures contract is standardized product and written for fixed amounts and terms. Lower commission costs can encourage a trader to take additional trades and lead to over-trading.

Disadvantages of investors: Futures contract is standardized product and written for fixed amounts and terms. Lower commission costs can encourage a trader to take additional trades and lead to over-trading. It offers only a partial hedge. It is subject to basis risk which is associated with imperfect hedging using futures.

Margins in the stock market:

Margin is the money that an investor has borrowed from a broker in order to buy securities. An investor who buys on margin can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction. Stocks are classified into three categories on the basis of their liquidity and impact cost.

The Stocks which have traded at least 80% of the days for the previous six months shall constitute the Group I and Group II.

Out of the scripts identified above, the scripts having mean impact cost of less than or equal to 1% are categorized under Group I and the scripts where the impact cost is more than 1, are categorized under Group II.

The remaining stocks are classified into Group III.

Participants of the Market:

Long-Term Investor: An investor who intends to hold a security, portfolio, or investment strategy for a term of longer than one year. The exact number of years varies according to the usage. For example, a long term stock investor may outline investment goals for any time longer than one year, while a long-term bond investor may hold a bond until it matures 10 or more years later. Long-term investing involves more uncertainty than anything short-term because, generally speaking, market trends are more easily predictable in the short term. Thus, while planning for the long term is necessary, one's plan must be flexible to account for the uncertainty inherent in it. Hedgers: Farmers, manufacturers, importers and exporters can all be hedgers. A hedger wants to secure the future price of a commodity and accomplishes this task by buying or selling in the futures market. This helps protect them against price risks. The holders of the long position in futures contracts (the buyers of the commodity), are trying to secure as low a price as possible. The short holders of the contract (the sellers of the commodity) will want to secure as high a price as possible. The futures contract, however, provides a definite price certainty for both parties, which reduces the risks associated with price volatility. Hedging

by means of futures contracts can also be used as a means to lock in an acceptable price margin between the cost of the raw material and the retail cost of the final product sold. Speculators: Speculators are not trying to minimize risk but rather to benefit from the inherently risky nature of the futures market. They aim to profit from the very price change that hedgers are protecting themselves against. Hedgers want to minimize their risk no matter what they're investing in, while speculators want to increase their risk and therefore maximize their profits. In the futures market, a speculator buying a contract low in order to sell high in the future would most likely be buying that contract from a hedger selling a contract low in anticipation of declining prices in the future. Arbitrators: A person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. In commodity market Arbitrators are the person who takes the advantage of a discrepancy between prices in two different markets. For exampleone could buy in the cash market and simultaneously sell in the future market. The person who does this activity is called an arbitrageur.

2.4 Goal and Targets

Goal:
Compare the equity stocks and equity derivative (future) stocks of selected companies like ICICI Bank, Associated Cement Companies (ACC), Indian Tobacco Company (ITC) with reference to Kotak Securities Limited.

Targets:

04th June to 08th June: Gather knowledge about equity market and stocks, collecting basic knowledge about Back office support system (BOSS) and centralized receipt payment system (CRPS). 11th June to 15th June: Gather knowledge about advantages and disadvantages of equity stocks, brief knowledge about terminal and observing the fluctuation of the equity and future stocks of selected companies.

18th June to 22nd June: Introduction to derivative market and future stock and data collection of selected equity and future stocks throughout the week. 25th June to 29th June: Gather knowledge about advantages and disadvantages of future stocks, weekly data collection. 02nd July to 06th July: Collect the historical trading details of equity and future stocks of selected companies throughout the week, analyzing and calculating risk and return. 09th July to 13th July: Compare equity and future stocks in terms of risk and return, types of margin, duration, participants, expiry date of contract, etc. 16th July to 20th July: Interpretation of data and give recommendation and conclusion, prepare the final report.

2.5 Expected Learning from the Internship

Most expected learning from this internship area is to understand the movement of the market. In
order to be successful in this field, as an investor needs to understand how the markets move and how to interpret differences in the various market indexes and what they mean. All those movements are shown in the Terminal as it is the main area from which the total trading is taken place.

Most traders are aware that market prices move because of buying and selling (i.e. trading), but not many traders actually understand how buying and selling moves the market prices. This is one of the most confusing aspects of trading (especially for new traders), but it is also one of the most important. The explanation of market price movement is composed of two parts. The first part explains how buying volume and selling volume move the market price, and is quite easy to understand. The second part explains how individual trades (as in individual transactions) are classified as either buying or selling volume, and is the part that causes the most confusion for new traders. Buying and Selling Volume Every trade (as in every individual transaction) is either a buying trade or a selling trade. Buying trades help move the market price upwards, and selling trades help move the market price downwards. When there are more buying trades occurring in a market, the market price will continue moving upwards. When they are more selling trades occurring in a market, the market price will continue moving downwards.

Bid and Ask Volume Every trade is classified as a buying trade or a selling trade based upon how the trade affects the order book, and therefore the current market price. The order book is composed of bid prices; ask prices, and the last price (i.e. the current market price). The bid prices are the prices at which traders have placed limit orders to buy. The ask prices are the prices at which traders have placed limit orders to sell. The last price is the most recently traded price (i.e. the most recently filled order). When a trader places a market order to buy, a trade will occur at the current ask price, because the buy order is matched with the lowest available sell order. This causes the last price to change to the ask price, as this is now the most recently traded price. As the ask price is always higher than the bid price, the last price can only stay still or move up, and therefore this is classified as a buying trade (i.e. buying volume). Conversely, when a trader places a market order to sell, a trade will occur at the current bid price, because the sell order is matched with the highest available buy order. This causes the last price to change to the bid price, as this is now the most recently traded price. As the bid price is always lower than the ask price, the last price can only stay still or move down, and therefore this is classified as a selling trade (i.e. selling volume). The software ODIN Client 10.0.0.2(Integrated) is used in terminal. The computer keyboard is the main functional area. F1 is used to buy stocks, F2 is required to sell stocks, F3 is for order booking, F5 is used to know the volume of particular stock, their opening, closing, high, low prices, Alt F6 is used to the Net Client Position in a trading day, F8 is used to know the trading details etc. It is also learned that how to work in BOSS and CRPS. All the office related works and informations are recorded and audited by the operating system BOSS. It also helps to know about the clients demat account, his/her trading details, personal information. In CRPS all the financial transactions of the company take place.

Chapter 3
3.1 Strategy Implementation
Details of resources:
For achieving objectives all the data/resources are collected through primary and secondary data collection. The June month data of equity and future stocks of selected companies-ICICI Bank, ITC, ACC are collected from the terminal screen of the computer after closing the market. This data collection is called primary data collection. The previous two months i.e April and May months data of equity and future stocks of selected companies-ICICI Bank, ITC, ACC are collected from NSE website.

Planning efficiency:
For comparing the equity stocks and equity future contracts of the selected Companies, few parameters are selected. The parameters are market returns, stock returns, standard deviations, beta, expiry date, lot sizes, margin and duration. My plan to compare the equity stocks and equity future contracts of the Companies includes 1. Gathering basic knowledge about equity stocks and equity future contracts of the selected Companies. 2. Observing the execution process of the terminal. 3. Observing the fluctuation of the selected equity stocks and equity future contracts. 4. Collecting the trading details of the selected equity stocks and equity future contracts. 5. Analyzing and comparing them based on the predetermined parameters.

Strategies applied:
To achieve the target I need to compare equity stocks and equity future contracts of the selected companies on the basis of risk and return, types of margin, duration, expiry date of contract, lot sizes. For this, I have applied few strategies. These are: 1. Calculation of Beta for comparing the risk and return of the selected stocks. 2. Descriptive statistics like tabular and graphical data representation (Column diagram) for comparing the equity stocks and equity future contracts of the selected Companies.

Application of management tool:

To achieve the objectives the applied management tools for comparing equity and future stocks of selected companies on the basis of risk and return, types of margin, duration, expiry date of contracts, and lot sizes. For finding out the risk and return Beta () calculation is needed. To calculate the formula is:

Rs= Company Stock return

Rm= Market index return

SD = Standard deviation =

m2= Variance of market return

=

= Covariance of stock and market return =

3.2 Findings
1. S & P CNX Nifty Average Market index (S & P CNX Nifty) return is -0.0002 %. Variance of market index is 1.01%. Standard deviation of market index is 1.00%.

2. Three selected companies EQ Stocks

Table1: Risk, Return and Beta of three selected companies EQ Stocks Stocks ICICI Bank ITC Ltd ACC Ltd Risk (%) 1.85 1.67 1.90 Return (%) 0.03 0.23 -0.09 Beta 1.57 0.80 0.81

Graph 1: Risk, Return and Beta of three selected companies EQ Stocks

2 1.5 1 0.5 0.03 0 Risk (%) -0.5 ICICI Bank Return (%) -0.09 ITC Ltd ACC Ltd Beta 0.23 0.8 0.81 1.85 1.67 1.9 1.57

Analysis: Stock return for ICICI Bank equity stock is 0.03%, for ITC equity stock is 0.23% and for ACC equity stock is -0.09%. ICICI Bank ltd has a risk factor of 1.85%, ITC has risk factor of 1.67% and ACC has risk factor of 1.90%. Beta is 1.57 for ICICI Bank 0.80 for ITC and 0.81 for ACC equity stock. Bank, stock

Interpretation: Beta of ICICI Bank ltd is 1.57 which is more than 1. It shows more volatility than the vol market as a whole. Risk of the stock is 1.85% and rate of return is only 0.03%. Beta of ITC ltd is 0.80 which is less than 1. It shows less volatility than the market as a whole. Risk of the stock is 1.67 and rate of return is only 0.23%. 1.67% Beta of ACC ltd is 0.81 which is less than 1. It shows less volatility than the market as a whole. Risk of the stock is 1.90% and rate of return is only -0.09%. 0.09%. Table 2: Average risk of selected equity stocks Factor Risk (%) ICICI Bank 1.85 ITC 1.67 ACC 1.90 Total 5.42

Average Risk=

% = 1.81%

Graph 2: Average risk of selected equity stocks

6 5 4 3 2 1 0 ICICI Bank ITC Risk (%) ACC Total 1.85 1.67 1.9 5.42

Analysis: ACC has the highest risk factor of 1.90% with 0.81 beta. ITC has the lowest risk factor of 1.67% with 0.80 beta. On an average, equity stocks have the risk factor of 1.81%.

Interpretation: Risk is a major factor influence all type of investors. In above selected equity stocks average risk factor is 1.81% and the risk factor of the market is 1.00%, it is showing equities are more risky. Table 3: Average return of selected equity stocks rage Factor Return (%) ICICI Bank 0.03 ITC 0.23 ACC -0.09 Total 0.17

Average Risk=

% = 0.06%

Graph 3: Average return of selected equity stocks

0.25 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 Return (%) ICICI Bank ITC ACC -0.09 Total 0.03 0.23 0.17

Analysis: ITC has got the highest return of 0.23 0.23%. ACC has got the lowest return of -0.09%. On an average, equity stocks have got the return of 0.17%. Interpretation: Return is a major factor influencing factor to all type of investors. In the above selected equity stocks average return is 0.17, compared to market return of -0.0002%. Selected equity 0.0002%. stock returns are good and it will attract more and more customers.

3. Three selected companies EQ Future Stocks:

Table 4: Risk, Return and Beta of three selected companies EQ Future Stocks Stocks ICICI Bank ITC Ltd ACC Ltd Risk (%) 1.72 1.61 1.75 Return (%) -0.05 0.17 -0.15 Beta 1.37 0.66 0.64

Graph 4: Risk, Return and Beta of three selected companies EQ future Stocks
2 1.5 1 0.66 0.64 0.5 0 Risk (%) -0.5 ICICI Bank ITC Ltd ACC Ltd -0.05 Return (%) -0.15 Beta 0.17 1.75 1.37

1.72

1.61

Analysis: Stock return for ICICI Bank equity derivative stock is -0.05%, for ITC is 0.17% and %, for ACC is -0.15%. ICICI Bank ltd has a risk factor of 1.72%, ITC has risk factor of 1.61 and ACC has 1.61% risk factor of 1.75%. Beta is 1.37 for ICICI Bank 0.66 for ITC and 0.64 for ACC equity derivative stock. Bank, Interpretation: Beta of ICICI Bank ltd is 1.37% which is more than 1. It shows more volatility than 7% the market as a whole. Risk of the stock is 1.72% and rate of return is only -0.05%. 1.72% Beta of ITC ltd is 0.66% which is less than 1. It shows less volatility than the market 0.66% as a whole. Risk of the stock is 1.61% and rate of return is only 0.17%. %.

Beta of ACC ltd is 0.64% which is less than 1. It shows less volatility than the market 0.64% as a whole. Risk of the stock is 1. 1.75% and rate of return is only -0.15 0.15%. Table 5: Average risk of selected equity future stocks : Factor Risk (%) ICICI Bank 1.72 72 ITC 1.61 ACC 1.75 Total 5.08

Average Risk=

% = 1.69 1.69%

Graph 5: Average risk of selected equity future stocks :

6 5 4 3 2 1 0 ICICI Bank ITC Risk (%) ACC Total 1.72 1.61 1.75

5.08

Analysis: ACC has the highest risk factor of 1. %. 1.75 ITC has the lowest risk factor of 1.61% s 1.61%. On an average, equity stock have the risk factor of 1.69%. stocks Interpretation: Risk is a major factor influence all type of investors. In above selected equity future stocks average risk factor is 1.69% and the risk factor of the market is 1.00%, it is showin equities % showing are more risky.

Table 6: Average return of selected equity future stocks : Factor Return (%) ICICI Bank -0.05 05 ITC 0.17 ACC -0.15 Total -0.03

Average Risk=

% = -0.01 0.01%

Graph 6: Average return of selected equity future stocks :

0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 Return (%) -0.15 ICICI Bank -0.05 ITC ACC Total -0.03 0.17

Analysis: ITC has got the highest return of 0.17%. ACC has got the lowest return of -0.15%. On an average, equity future stocks have got the return of -0.03%. Interpretation: Return is a major factor influencing factor to all type of investors. In the above selected equity future stocks average return is 0.17 , compared to market return of -0.0002%. 0.17%, Selected equity future stock returns are good and it will attract more and more customers.

4. Comparison between selected companies equity and equity future stocks in terms

of risk factor: Table 7: Risk comparison Factor Risk (%) Graph 7: Risk comparison
1.85 1.8 1.75 1.7 1.65 1.6 Equity Stock Risk (%) Equity future Stock 1.69

Equity Stock 1.81

Equity future Stock 1.69

1.81

Analysis: Equity stocks have the risk on an average of 1.81%. Equity future stocks have the risk on an average of 1.69%.

Interpretation: Equity stocks and equity derivative stocks are subjected to market risk. Based on the above analysis equity future stocks have an average risk of 1.69% which is compared to equity stocks risk of 1.81% is lower. Those who would like to take risk can go for equity stocks.

Table 8: Return comparison Factor Return (%) Graph 8: Return comparison

0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 -0.01 -0.02 Equity Stock Equity future Stock -0.01 Return (%) 0.06

Equity Stock 0.06

Equity future Stock -0.01

Analysis: Equity stocks have the average return of 0.06%. Equity future stocks have the average return of -0.01%. Interpretation: Based on the above analysis equity future stocks have an average return of -0.01% which is compared to equity stocks return of 0.06% is lower. Those who would like to take risk can go 0.06% for equity stocks for getting higher return. Table 9: Beta comparison
Stocks ICICI Bank ITC Ltd ACC Ltd Total of Equity stocks 1.57 0.8 0.81 3.18 of Equity Future stocks 1.37 0.66 0.64 2.16

Average of Equity stocks=

= 1.06

Average of Equity Future stocks stocks=

= 0.72

Graph 9: Beta comparison

3.5 3 2.5 2 1.5 1 0.5 0 ICICI Bank ITC Ltd ACC Ltd of Equity Future stocks Total 2.16 1.57 1.37 0.8 0.66 0.81 0.64 3.18

of Equity stocks

Analysis: ICICI Bank Equity stocks have the maximum beta of 1.57. ACC Equity future stocks have the minimum beta of 0.64. The average beta for equity stocks is 1.06 1.06. The average beta for equity future stocks is 0.72 or 0.72.

Interpretation: Based on the above analysis equity future stocks have an average beta of 0.72 which is compared to equity stocks beta of 1.06 is lower. Beta>1 shows more volatility than the market as a whole and beta<1 shows less volatility than the market as a whole or the stock has less systematic risk.

5. Types of margin: It is found that the equity stocks are gett d getting two types of margin. They are- stock vs margin and cash vs margin. Stock margins are those margins which are given to the customer on the basis of their stock value. For example-If one customer having stock value of 1 lac and he/she wants to buy If stocks up to 5 lacs then he/she will get the margin of 4 lacs from the company.

Cash margins are those margins which are given to the customer on the basis of their cash. That cash is deposited by the customer in the form of check. For example- If the customer does not have any stock in his/her account but he/she submits the check of 1 lac to the company then he/she can get the margin of 4 lacs as he/she wants to buy stocks of 5 lacs.

In case of future stock span margin is monitored and collected at the time of placing the buy / sell order. For example- if a customer wants to buy one lot of ITC future stock then his/her account should have that minimum margin. If the price of the stock is Rs 206/-, lot size 1000 and span % is 18% then in his/her account Rs {(1000206) 18/100} i.e Rs 37080/- should be there.

6. Duration: Generally equity stock is a long term stock and people invested in it for more than one year and then only they get good return on equity. While in equity derivative stock investors are investing for less than one year, generally for 2 months or 3 months.

7. Lot sizes: In case of equity stock there is no fixed quantity to buy or sell the stock. But in case of equity future stock lot sizes are fixed. For ICICI Bank lot size is 250, for ITC lot size is 1000 and for ACC lot size is 250.

8. Expiry Date of contract: Its a last Thursday of any month in case of derivative stocks but no such things in case of equity stocks. In this project the last Thursday is the 28th June which is the expiry date for three months i.e April, May and June.

3.3 Analyses of performance

From the above findings the analyses of the performances are follows: According to the first objective equity stocks have the average risk factor of 1.81% which is more than the average risk factor 1.69% of equity derivatives stocks that means equity stocks are more risky than equity derivatives stocks. The average stock return of equity stocks is 0.06% and the average stock return of equity derivatives stocks is -0.01%. That means those who would like to take risk can go for equity stocks for getting higher return. Based on the above analysis equity future stocks have an average beta of 0.72 which is lower as compared to equity stocks beta of 1.06. Equity stocks Beta>1 shows more volatility than the market as a whole or the stocks carry more unavoidable risk and equity derivative stocks beta<1 shows less volatility than the market as a whole or the stock has less systematic risk. According to the second objective margin for equity stocks are less risky than equity derivative stocks. It will be easily understand by an example- If a customer buys an equity stock of ICICI bank at Rs 860.10 and after that the price fells up to Rs 856.95 then the customer can wait for next price increase. But if the same case is happened in equity derivative stock then the loss amount should immediately deduct from his/her account. In terms of duration equity stocks are invested for more than one year and equity derivative stocks are invested for maximum three months. There is no fixed lot size for buying or selling equity stocks. Customers can buy/sell as much they want. But in case of equity derivative stocks lot size is fixed and customers are bound to buy/sell that amount of stock. The person who buys/sells ITC equity derivative stocks, the minimum quantity of stock is 1000. In case of ICICI Bank and ACC the minimum quantity is 250. Expiry date for derivative stocks is the last Thursday of any month. No such limit is there for equity stocks. The third objective of the study is to provide information about the pros and cons of investing in equity and equity derivative stocks. There are many advantages of investing in those stocks if it is made with a systematic plan of investment and vice versa.

3.4 Limitations
The limitations of the study are:

Three companies are selected for comparison. If the numbers of selected companies are more, then the comparison will become more effective and fruitful.

The three months data will collect for calculating the risk and return of those selected companies but the risk and return will calculate for more than one year then the value of beta will be more affective.

3.5 Conclusions
It can be concluded that the findings of the research are quite eye-opening and thus the objective of this study has been successfully achieved in comparing the equity stocks and equity derivatives stocks of the selected Companies. These findings are significant in the aspect that it gives an insight to the volatility of the stocks so that the investors can easily choose the right stock for investment. This research work can also be used by the broking firms to enhance their customer service as well as brand image. They can utilize these findings to understand the actual need of their customers and predict their behavior. And further research work needs to be done in this area to analyze the situation critically.

Chapter 4
4.1 Annexure
S&P CNX NIFTY: Calculation of Market Return and Standard Deviation
Date 30-Mar-2012 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 Script Value 5295.55 5317.90 5358.50 5322.90 5234.40 5243.60 5226.85 5276.85 5207.45 5226.20 5289.70 5300.00 5332.40 5290.85 5200.60 5222.65 5202.00 5189.00 5190.60 5209.00 5248.15 5239.15 5188.40 5086.85 5114.15 4999.95 4974.80 4965.70 4928.90 4907.80 4942.80 4858.25 4870.20 Return(Rm) in % 0.42 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 0.71 -1.71 0.25 (Rm-Rm) 0.4202 0.7602 -0.6598 -1.6598 0.1802 -0.3198 0.9602 -1.3198 0.3602 1.2202 0.1902 0.6102 -0.7798 -1.7098 0.4202 -0.3898 -0.2498 0.0302 0.3502 0.7502 -0.1698 -0.9698 -1.9598 0.5402 -2.2298 -0.4998 -0.1798 -0.7398 -0.4298 0.7102 -1.7098 0.2502 (Rm-Rm)2 0.176568 0.577904 0.435336 2.754936 0.032472 0.102272 0.921984 1.741872 0.129744 1.488888 0.036176 0.372344 0.608088 2.923416 0.176568 0.151944 0.0624 0.000912 0.12264 0.5628 0.028832 0.940512 3.840816 0.291816 4.972008 0.2498 0.032328 0.547304 0.184728 0.504384 2.923416 0.0626

18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

4891.45 4906.05 4860.50 4835.65 4921.40 4920.40 4985.65 4990.10 4950.75 4924.25 4841.60 4848.15 4863.30 4997.10 5049.65 5068.35 5054.10 5115.90 5121.45 5054.75 5139.05 5064.25 5103.85 5120.55 5165.00 5146.05 5114.65 5120.80 5141.90 5149.15 5278.90

0.44 0.29 -0.93 -0.51 1.77 -0.02 1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.01

0.4402 0.2902 -0.9298 -0.5098 1.7702 -0.0198 1.3302 0.0902 -0.7898 -0.5398 -1.6798 0.1402 0.3102 2.7502 1.0502 0.3702 -0.2798 1.2202 0.1102 -1.2998 1.6702 -1.4598 0.7802 0.3302 0.8702 -0.3698 -0.6098 0.1202 0.4102 0.1402 2.5202

0.193776 0.084216 0.864528 0.259896 3.133608 0.000392 1.769432 0.008136 0.623784 0.291384 2.821728 0.019656 0.096224 7.5636 1.10292 0.137048 0.078288 1.488888 0.012144 1.68948 2.789568 2.131016 0.608712 0.109032 0.757248 0.136752 0.371856 0.014448 0.168264 0.019656 6.351408 63.6549

Where, Rm= Market index return

Rm = =

, where n= number of trading days=63

% = - 0.0002%

Variance (m) = Standard Deviation (SD) =

=1.01%

=1.00%
In Case of Equity Stocks: 1. ICICI BANK LTD. Calculation of Risk and Return
Date 30-Mar-2012 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 Script Value 890.20 890.45 908.20 890.25 867.05 863.80 864.70 879.35 865.00 873.60 885.45 881.25 877.85 861.05 843.90 847.80 838.40 841.45 860.85 868.75 882.35 882.05 857.55 833.35 848.25 830.15 821.95 814.15 813.20 800.70 816.85 794.40 787.45 Return(Rs) in % 0.03 1.99 -1.97 -2.61 -0.38 0.11 1.69 -1.63 0.99 1.36 -0.47 -0.39 -1.91 -1.99 0.46 -1.11 0.36 2.31 0.92 1.57 -0.03 -2.78 -2.82 1.79 -2.13 -0.99 -0.95 -0.12 -1.54 2.02 -2.75 -0.88 (Rs-Rs) 0 1.96 -2 -2.64 -0.41 0.08 1.66 -1.66 0.96 1.33 -0.5 -0.42 -1.94 -2.02 0.43 -1.14 0.33 2.28 0.89 1.54 -0.06 -2.81 -2.85 1.76 -2.16 -1.02 -0.98 -0.15 -1.57 1.99 -2.78 -0.91 (Rs-Rs)2 0 3.8416 4 6.9696 0.1681 0.0064 2.7556 2.7556 0.9216 1.7689 0.25 0.1764 3.7636 4.0804 0.1849 1.2996 0.1089 5.1984 0.7921 2.3716 0.0036 7.8961 8.1225 3.0976 4.6656 1.0404 0.9604 0.0225 2.4649 3.9601 7.7284 0.8281

18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

805.20 811.10 800.80 793.30 820.60 814.60 834.40 838.70 817.25 783.25 781.70 788.85 792.05 808.40 830.05 829.15 826.75 839.05 849.35 818.85 845.70 816.55 826.80 833.00 849.65 851.70 846.90 844.10 852.50 856.95 899.50

2.25 0.73 -1.27 -0.94 3.44 -0.73 2.43 0.52 -2.56 -4.16 -0.20 0.92 0.41 2.06 2.68 -0.11 -0.29 1.49 1.23 -3.59 3.28 -3.45 1.26 0.75 2.00 0.24 -0.56 -0.33 1.00 0.52 4.97 2.14

2.22 0.7 -1.3 -0.97 3.41 -0.76 2.4 0.49 -2.59 -4.19 -0.23 0.89 0.38 2.03 2.65 -0.14 -0.32 1.46 1.2 -3.62 3.25 -3.48 1.23 0.72 1.97 0.21 -0.59 -0.36 0.97 0.49 4.94

4.9284 0.49 1.69 0.9409 11.6281 0.5776 5.76 0.2401 6.7081 17.5561 0.0529 0.7921 0.1444 4.1209 7.0225 0.0196 0.1024 2.1316 1.44 13.1044 10.5625 12.1104 1.5129 0.5184 3.8809 0.0441 0.3481 0.1296 0.9409 0.2401 24.4036 216.3451

Where, Rs= Company stock return = Rs = = = 0.03% Standard Deviation (SD) = = (216.3451/63) = 1.85% where n= number of trading days= 63

Calculation of Beta

Where, Rs= Companys stock return Rs= Companys average stock return Rm= Market index return Rm= Average market index return
Date Return of ICICI BANK EQ Stock(Rs) 0.03 1.99 -1.97 -2.61 -0.38 0.11 1.69 -1.63 0.99 1.36 -0.47 -0.39 -1.91 -1.99 0.46 -1.11 0.36 2.31 0.92 1.57 -0.03 -2.78 -2.82 1.79 -2.13 -0.99 -0.95 -0.12 (Rs-Rs) Market index return(Rm) 0.42 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 (Rm-Rm) (Rm-Rm)2 (Rs-Rs) (Rm-Rm) 0 1.5092 1.3 4.356 -0.0779 -0.0248 1.6102 2.1746 0.3552 1.6359 -0.1 -0.2604 1.4938 3.434 0.1849 0.4332 -0.0792 0.0912 0.3204 1.1704 0.0096 2.6976 5.5575 0.968 4.7952 0.4998 0.1666 0.1095

02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012

0 1.96 -2 -2.64 -0.41 0.08 1.66 -1.66 0.96 1.33 -0.5 -0.42 -1.94 -2.02 0.43 -1.14 0.33 2.28 0.89 1.54 -0.06 -2.81 -2.85 1.76 -2.16 -1.02 -0.98 -0.15

0.4202 0.7602 -0.6598 -1.6598 0.1802 -0.3198 0.9602 -1.3198 0.3602 1.2202 0.1902 0.6102 -0.7798 -1.7098 0.4202 -0.3898 -0.2498 0.0302 0.3502 0.7502 -0.1698 -0.9698 -1.9598 0.5402 -2.2298 -0.4998 -0.1798 -0.7398

0.176568 0.577904 0.435336 2.754936 0.032472 0.102272 0.921984 1.741872 0.129744 1.488888 0.036176 0.372344 0.608088 2.923416 0.176568 0.151944 0.0624 0.000912 0.12264 0.5628 0.028832 0.940512 3.840816 0.291816 4.972008 0.2498 0.032328 0.547304

14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

-1.54 2.02 -2.75 -0.88 2.25 0.73 -1.27 -0.94 3.44 -0.73 2.43 0.52 -2.56 -4.16 -0.20 0.92 0.41 2.06 2.68 -0.11 -0.29 1.49 1.23 -3.59 3.28 -3.45 1.26 0.75 2.00 0.24 -0.56 -0.33 1.00 0.52 4.97 2.14

-1.57 1.99 -2.78 -0.91 2.22 0.7 -1.3 -0.97 3.41 -0.76 2.4 0.49 -2.59 -4.19 -0.23 0.89 0.38 2.03 2.65 -0.14 -0.32 1.46 1.2 -3.62 3.25 -3.48 1.23 0.72 1.97 0.21 -0.59 -0.36 0.97 0.49 4.94

-0.43 0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 -0.02 1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.01

-0.4298 0.7102 -1.7098 0.2502 0.4402 0.2902 -0.9298 -0.5098 1.7702 -0.0198 1.3302 0.0902 -0.7898 -0.5398 -1.6798 0.1402 0.3102 2.7502 1.0502 0.3702 -0.2798 1.2202 0.1102 -1.2998 1.6702 -1.4598 0.7802 0.3302 0.8702 -0.3698 -0.6098 0.1202 0.4102 0.1402 2.5202

0.184728 0.504384 2.923416 0.0626 0.193776 0.084216 0.864528 0.259896 3.133608 0.000392 1.769432 0.008136 0.623784 0.291384 2.821728 0.019656 0.096224 7.5636 1.10292 0.137048 0.078288 1.488888 0.012144 1.68948 2.789568 2.131016 0.608712 0.109032 0.757248 0.136752 0.371856 0.014448 0.168264 0.019656 6.351408 63.6549

0.6594 1.4328 4.726 -0.2366 0.999 0.21 1.196 0.485 6.0698 0.0076 3.216 0.049 2.0202 2.2207 0.3841 0.1335 0.1216 5.6028 2.809 -0.0532 0.0864 1.7958 0.144 4.6698 5.46 5.046 0.9717 0.2448 1.7336 -0.0756 0.354 -0.0468 0.4074 0.0735 12.4982 99.7436

= 1.57

2. ITC LTD. Calculation of Risk and Return

Date 30-Mar-2012 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 Script Value 226.90 226.95 227.10 227.40 224.05 229.35 229.75 234.75 236.25 241.05 246.20 241.75 244.05 245.20 244.75 245.05 245.95 249.05 245.80 246.90 245.50 244.60 241.70 238.15 236.35 226.90 239.90 239.25 234.25 234.50 230.85 227.30 234.75 239.55 234.85 232.75 231.70 233.35 Return(Rs) in % 0.02 0.07 0.13 -1.47 2.37 0.17 2.18 0.64 2.03 2.14 -1.81 0.95 0.47 -0.18 0.12 0.37 1.26 -1.31 0.45 -0.57 -0.37 -1.19 -1.47 -0.76 -4.00 5.73 -0.27 -2.09 0.11 -1.56 -1.54 3.28 2.05 -1.96 -0.89 -0.45 0.71 (Rs-Rs) -0.21 -0.16 -0.1 -1.7 2.14 -0.06 1.95 0.41 1.8 1.91 -2.04 0.72 0.24 -0.41 -0.11 0.14 1.03 -1.54 0.22 -0.35 -0.6 -1.42 -1.7 -0.99 -4.23 5.5 -0.5 -2.32 -0.12 -1.79 -1.77 3.05 1.82 -2.19 -1.12 -0.68 0.48 (Rs-Rs)2 0.0441 0.0256 0.01 2.89 4.5796 0.0036 3.8025 0.1681 3.24 3.6481 4.1616 0.5184 0.0576 0.1681 0.0121 0.0196 1.0609 2.3716 0.0484 0.1225 0.36 2.0164 2.89 0.9801 17.8929 30.25 0.25 5.3824 0.0144 3.2041 3.1329 9.3025 3.1324 4.7961 1.2544 0.4624 0.2304

25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

231.85 235.05 230.90 231.90 229.35 233.85 230.10 225.90 234.55 236.35 239.20 239.75 243.05 244.05 244.70 248.00 243.20 249.40 246.05 251.40 250.50 250.05 247.05 247.80 251.30 258.90

-0.64 1.38 -1.77 0.43 -1.09 1.96 -1.60 -1.83 3.83 0.77 1.21 0.23 1.38 0.41 0.27 1.35 -1.94 2.55 -1.34 2.17 -0.36 -0.18 -1.20 0.40 1.41 3.02 14.18

-0.87 1.15 -2 0.2 -1.32 1.73 -1.83 -2.06 3.6 0.54 0.98 0 1.15 0.18 0.04 1.12 -2.17 2.32 -1.57 1.94 -0.59 -0.41 -1.43 0.17 1.18 2.79

0.7569 1.3225 4 0.04 1.7424 2.9929 3.3489 4.2436 12.96 0.2916 0.9604 0 1.3225 0.0324 0.0016 1.2544 4.7089 5.3824 2.4649 3.7636 0.3481 0.1681 2.0449 0.0289 1.3924 7.7841 175.8602

Rs = =

where n= number of trading days= 63

= 0.23% Standard Deviation (SD) = = (175.8602/63) = 1.67%

Calculation of Beta
Date Return of ITC Ltd. EQ Stock(Rs) 0.02 0.07 0.13 -1.47 2.37 0.17 2.18 0.64 2.03 2.14 -1.81 0.95 0.47 -0.18 0.12 0.37 1.26 -1.31 0.45 -0.57 -0.37 -1.19 -1.47 -0.76 -4.00 5.73 -0.27 -2.09 0.11 -1.56 -1.54 3.28 2.05 -1.96 -0.89 -0.45 0.71 (Rs-Rs) Market index return(Rm) 0.42 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 (Rm-Rm) (Rm-Rm)2 (Rs-Rs) (Rm-Rm) -0.08824 -0.12163 0.06598 2.82166 0.385628 0.019188 1.87239 -0.54112 0.64836 2.330582 -0.38801 0.439344 -0.18715 0.701018 -0.04622 -0.05457 -0.25729 -0.04651 0.077044 -0.26257 0.10188 1.377116 3.33166 -0.5348 9.432054 -2.7489 0.0899 1.716336 0.051576 -1.27126 3.026346 0.76311 0.801164 -0.63554 1.041376 0.346664 0.849696

02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012

-0.21 -0.16 -0.1 -1.7 2.14 -0.06 1.95 0.41 1.8 1.91 -2.04 0.72 0.24 -0.41 -0.11 0.14 1.03 -1.54 0.22 -0.35 -0.6 -1.42 -1.7 -0.99 -4.23 5.5 -0.5 -2.32 -0.12 -1.79 -1.77 3.05 1.82 -2.19 -1.12 -0.68 0.48

0.4202 0.7602 -0.6598 -1.6598 0.1802 -0.3198 0.9602 -1.3198 0.3602 1.2202 0.1902 0.6102 -0.7798 -1.7098 0.4202 -0.3898 -0.2498 0.0302 0.3502 0.7502 -0.1698 -0.9698 -1.9598 0.5402 -2.2298 -0.4998 -0.1798 -0.7398 -0.4298 0.7102 -1.7098 0.2502 0.4402 0.2902 -0.9298 -0.5098 1.7702

0.176568 0.577904 0.435336 2.754936 0.032472 0.102272 0.921984 1.741872 0.129744 1.488888 0.036176 0.372344 0.608088 2.923416 0.176568 0.151944 0.0624 0.000912 0.12264 0.5628 0.028832 0.940512 3.840816 0.291816 4.972008 0.2498 0.032328 0.547304 0.184728 0.504384 2.923416 0.0626 0.193776 0.084216 0.864528 0.259896 3.133608

25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

-0.64 1.38 -1.77 0.43 -1.09 1.96 -1.60 -1.83 3.83 0.77 1.21 0.23 1.38 0.41 0.27 1.35 -1.94 2.55 -1.34 2.17 -0.36 -0.18 -1.20 0.40 1.41 3.02 14.18

-0.87 1.15 -2 0.2 -1.32 1.73 -1.83 -2.06 3.6 0.54 0.98 0 1.15 0.18 0.04 1.12 -2.17 2.32 -1.57 1.94 -0.59 -0.41 -1.43 0.17 1.18 2.79

-0.02 1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.01

-0.0198 1.3302 0.0902 -0.7898 -0.5398 -1.6798 0.1402 0.3102 2.7502 1.0502 0.3702 -0.2798 1.2202 0.1102 -1.2998 1.6702 -1.4598 0.7802 0.3302 0.8702 -0.3698 -0.6098 0.1202 0.4102 0.1402 2.5202

0.000392 1.769432 0.008136 0.623784 0.291384 2.821728 0.019656 0.096224 7.5636 1.10292 0.137048 0.078288 1.488888 0.012144 1.68948 2.789568 2.131016 0.608712 0.109032 0.757248 0.136752 0.371856 0.014448 0.168264 0.019656 6.351408 63.6549

0.017226 1.52973 -0.1804 -0.15796 0.712536 -2.90605 -0.25657 -0.63901 9.90072 0.567108 0.362796 0 1.40323 0.019836 -0.05199 1.870624 3.167766 1.810064 -0.51841 1.688188 0.218182 0.250018 -0.17189 0.069734 0.165436 7.031358 51.00853

= 0.80

3. ACC LTD. Calculation of Risk and Return

Date 30-Mar-2012 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 Script Value 1359.45 1342.00 1364.25 1344.70 1312.10 1300.05 1236.50 1279.55 1258.75 1237.75 1254.70 1297.20 1247.60 1226.90 1243.45 1214.10 1194.70 1218.85 1195.05 1205.30 1237.15 1212.85 1206.85 1208.45 1235.00 1221.85 1201.90 1199.05 1165.95 1173.30 1174.35 1172.45 1170.90 1159.90 1145.10 1130.20 1130.45 1155.50 Return(Rs) in % -1.28 1.66 -1.43 -2.42 -0.92 -4.89 3.48 -1.63 -1.67 1.37 3.39 -3.82 -1.66 1.35 -2.36 -1.60 2.02 -1.95 0.86 2.64 -1.96 -0.50 0.13 2.20 -1.07 -1.63 -0.24 -2.76 0.63 0.09 -0.16 -0.13 -0.94 -1.28 -1.30 0.02 2.22 (Rs-Rs) -1.19 1.75 -1.34 -2.33 -0.83 -4.8 3.57 -1.54 -1.58 1.46 3.48 -3.73 -1.57 1.44 -2.27 -1.51 2.11 -1.86 0.95 2.73 -1.87 -0.41 0.22 2.29 -0.98 -1.54 -0.15 -2.67 0.72 0.18 -0.07 -0.04 -0.85 -1.19 -1.21 0.11 2.31 (Rs-Rs)2 1.4161 3.0625 1.7956 5.4289 0.6889 23.04 12.7449 2.3716 2.4964 2.1316 12.1104 13.9129 2.4649 2.0736 5.1529 2.2801 4.4521 3.4596 0.9025 7.4529 3.4969 0.1681 0.0484 5.2441 0.9604 2.3716 0.0225 7.1289 0.5184 0.0324 0.0049 0.0016 0.7225 1.4161 1.4641 0.0121 5.3361

25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

1144.20 1163.95 1137.95 1162.50 1140.95 1126.85 1125.35 1129.70 1158.65 1154.60 1147.60 1149.40 1188.00 1180.10 1189.95 1223.25 1225.55 1227.95 1271.20 1253.70 1215.05 1208.95 1220.55 1204.40 1223.40 1268.05

-0.98 1.73 -2.23 2.16 -1.85 -1.24 -0.13 0.39 2.56 -0.35 -0.61 0.16 3.36 -0.67 0.84 2.80 0.19 0.20 3.52 -1.38 -3.08 -0.50 0.96 -1.32 1.58 3.65 -5.78

-0.89 1.82 -2.14 2.25 -1.76 -1.15 -0.04 0.48 2.65 -0.26 -0.52 0.25 3.45 -0.58 0.93 2.89 0.28 0.29 3.61 -1.29 -2.99 -0.41 1.05 -1.23 1.67 3.74

0.7921 3.3124 4.5796 5.0625 3.0976 1.3225 0.0016 0.2304 7.0225 0.0676 0.2704 0.0625 11.9025 0.3364 0.8649 8.3521 0.0784 0.0841 13.0321 1.6641 8.9401 0.1681 1.1025 1.5129 2.7889 13.9876 229.0239

Rs = =

where n= number of trading days= 63

= -0.09% Standard Deviation (SD) = = (229.0239/63) = 1.90%

Calculation of Beta
Date Return of ACC Ltd. EQ Stock(Rs) -1.28 1.66 -1.43 -2.42 -0.92 -4.89 3.48 -1.63 -1.67 1.37 3.39 -3.82 -1.66 1.35 -2.36 -1.60 2.02 -1.95 0.86 2.64 -1.96 -0.50 0.13 2.20 -1.07 -1.63 -0.24 -2.76 0.63 0.09 -0.16 -0.13 -0.94 -1.28 -1.30 0.02 2.22 -0.98 (Rs-Rs) Market index return(Rm) 0.42 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 -0.02 (Rm-Rm) (Rm-Rm)2 (Rs-Rs) (Rm-Rm) -0.50004 1.33035 0.884132 3.867334 -0.14957 1.53504 3.427914 2.032492 -0.56912 1.781492 0.661896 -2.27605 1.224286 -2.46211 -0.95385 0.588598 -0.52708 -0.05617 0.33269 2.048046 0.317526 0.397618 -0.43116 1.237058 2.185204 0.769692 0.02697 1.975266 -0.30946 0.127836 0.119686 -0.01001 -0.37417 -0.34534 1.125058 -0.05608 4.089162 0.017622

02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012

-1.19 1.75 -1.34 -2.33 -0.83 -4.8 3.57 -1.54 -1.58 1.46 3.48 -3.73 -1.57 1.44 -2.27 -1.51 2.11 -1.86 0.95 2.73 -1.87 -0.41 0.22 2.29 -0.98 -1.54 -0.15 -2.67 0.72 0.18 -0.07 -0.04 -0.85 -1.19 -1.21 0.11 2.31 -0.89

0.4202 0.7602 -0.6598 -1.6598 0.1802 -0.3198 0.9602 -1.3198 0.3602 1.2202 0.1902 0.6102 -0.7798 -1.7098 0.4202 -0.3898 -0.2498 0.0302 0.3502 0.7502 -0.1698 -0.9698 -1.9598 0.5402 -2.2298 -0.4998 -0.1798 -0.7398 -0.4298 0.7102 -1.7098 0.2502 0.4402 0.2902 -0.9298 -0.5098 1.7702 -0.0198

0.176568 0.577904 0.435336 2.754936 0.032472 0.102272 0.921984 1.741872 0.129744 1.488888 0.036176 0.372344 0.608088 2.923416 0.176568 0.151944 0.0624 0.000912 0.12264 0.5628 0.028832 0.940512 3.840816 0.291816 4.972008 0.2498 0.032328 0.547304 0.184728 0.504384 2.923416 0.0626 0.193776 0.084216 0.864528 0.259896 3.133608 0.000392

28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

1.73 -2.23 2.16 -1.85 -1.24 -0.13 0.39 2.56 -0.35 -0.61 0.16 3.36 -0.67 0.84 2.80 0.19 0.20 3.52 -1.38 -3.08 -0.50 0.96 -1.32 1.58 3.65 -5.78

1.82 -2.14 2.25 -1.76 -1.15 -0.04 0.48 2.65 -0.26 -0.52 0.25 3.45 -0.58 0.93 2.89 0.28 0.29 3.61 -1.29 -2.99 -0.41 1.05 -1.23 1.67 3.74

1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.01

1.3302 0.0902 -0.7898 -0.5398 -1.6798 0.1402 0.3102 2.7502 1.0502 0.3702 -0.2798 1.2202 0.1102 -1.2998 1.6702 -1.4598 0.7802 0.3302 0.8702 -0.3698 -0.6098 0.1202 0.4102 0.1402 2.5202

1.769432 0.008136 0.623784 0.291384 2.821728 0.019656 0.096224 7.5636 1.10292 0.137048 0.078288 1.488888 0.012144 1.68948 2.789568 2.131016 0.608712 0.109032 0.757248 0.136752 0.371856 0.014448 0.168264 0.019656 6.351408 63.6549

2.420964 -0.19303 -1.77705 0.950048 1.93177 -0.00561 0.148896 7.28803 -0.27305 -0.1925 -0.06995 4.20969 -0.06392 -1.20881 4.826878 -0.40874 0.226258 1.192022 -1.12256 1.105702 0.250018 0.12621 -0.50455 0.234134 9.425548 51.5992

= 0.81

In Case of Future Stocks: 1. ICICI BANK LTD. Calculation of Risk and Return
Date 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 Script Value 891.70 913.00 888.60 870.35 863.45 866.50 881.30 866.10 878.95 892.55 885.65 883.35 861.70 844.65 852.35 840.55 843.75 859.65 866.30 876.45 873.05 853.95 828.95 845.25 824.65 815.05 805.65 807.40 792.55 808.80 787.10 777.85 796.00 800.35 787.70 782.55 808.05 Return(Rs) in % 2.39 -2.67 -2.05 -0.79 0.35 1.71 -1.72 1.48 1.55 -0.77 -0.26 -2.45 -1.98 0.91 -1.38 0.38 1.88 0.77 1.17 -0.39 -2.19 -2.93 1.97 -2.44 -1.16 -1.15 0.22 -1.84 2.05 -2.68 -1.18 2.33 0.55 -1.58 -0.65 3.26 (Rs-Rs) 2.44 -2.62 -2 -0.74 0.4 1.76 -1.67 1.53 1.6 -0.72 -0.21 -2.4 -1.93 0.96 -1.33 0.43 1.93 0.82 1.22 -0.34 -2.14 -2.88 2.02 -2.39 -1.11 -1.1 0.27 -1.79 2.1 -2.63 -1.13 2.38 0.6 -1.53 -0.6 3.31 (Rs-Rs)2 5.9536 6.8644 4 0.5476 0.16 3.0976 2.7889 2.3409 2.56 0.5184 0.0441 5.76 3.7249 0.9216 1.7689 0.1849 3.7249 0.6724 1.4884 0.1156 4.5796 8.2944 4.0804 5.7121 1.2321 1.21 0.0729 3.2041 4.41 6.9169 1.2769 5.6644 0.36 2.3409 0.36 10.9561

25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

804.60 821.95 823.35 799.35 788.90 783.80 794.60 793.70 809.95 827.20 831.00 826.15 842.65 848.70 822.00 847.75 816.20 828.10 835.65 852.75 852.95 846.80 845.85 850.95 858.10 -

-0.43 2.16 0.17 -2.91 -1.31 -0.65 1.38 -0.11 2.05 2.13 0.46 -0.58 1.99 0.72 -3.15 3.13 -3.72 1.46 0.91 2.05 0.02 -0.72 -0.11 0.60 0.84 -2.93

-0.38 2.21 0.22 -2.86 -1.26 -0.6 1.43 -0.06 2.1 2.18 0.51 -0.53 2.04 0.77 -3.1 3.18 -3.67 1.51 0.96 2.1 0.07 -0.67 -0.06 0.65 0.89 -

0.1444 4.8841 0.0484 8.1796 1.5876 0.36 2.0449 0.0036 4.41 4.7524 0.2601 0.2809 4.1616 0.5929 9.61 10.1124 13.4689 2.2801 0.9216 4.41 0.0049 0.4489 0.0036 0.4225 0.7921 182.0934

Where, Rs= Company stock return = Rs = = = -0.05% Standard Deviation (SD) = = (182.0934/61) = 1.72% where n= number of trading days= 61

Calculation of Beta
Date Return of ICICI BANK Future Stock(Rs) 2.39 -2.67 -2.05 -0.79 0.35 1.71 -1.72 1.48 1.55 -0.77 -0.26 -2.45 -1.98 0.91 -1.38 0.38 1.88 0.77 1.17 -0.39 -2.19 -2.93 1.97 -2.44 -1.16 -1.15 0.22 -1.84 2.05 -2.68 -1.18 2.33 0.55 -1.58 -0.65 3.26 -0.43 (Rs-Rs) Market index return(Rm) (Rm-Rm) (Rm-Rm)2 (Rs-Rs) (Rm-Rm)

03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012

2.44 -2.62 -2 -0.74 0.4 1.76 -1.67 1.53 1.6 -0.72 -0.21 -2.4 -1.93 0.96 -1.33 0.43 1.93 0.82 1.22 -0.34 -2.14 -2.88 2.02 -2.39 -1.11 -1.1 0.27 -1.79 2.1 -2.63 -1.13 2.38 0.6 -1.53 -0.6 3.31 -0.38

0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 -0.02

0.767 -0.653 -1.653 0.187 -0.313 0.967 -1.313 0.367 1.227 0.197 0.617 -0.773 -1.703 0.427 -0.383 -0.243 0.037 0.357 0.757 -0.163 -0.963 -1.953 0.547 -2.223 -0.493 -0.173 -0.733 -0.423 0.717 -1.703 0.257 0.447 0.297 -0.923 -0.503 1.777 -0.013

0.588289 0.426409 2.732409 0.034969 0.097969 0.935089 1.723969 0.134689 1.505529 0.038809 0.380689 0.597529 2.900209 0.182329 0.146689 0.059049 0.001369 0.127449 0.573049 0.026569 0.927369 3.814209 0.299209 4.941729 0.243049 0.029929 0.537289 0.178929 0.514089 2.900209 0.066049 0.199809 0.088209 0.851929 0.253009 3.157729 0.000169

1.87148 1.71086 3.306 -0.13838 -0.1252 1.70192 2.19271 0.56151 1.9632 -0.14184 -0.12957 1.8552 3.28679 0.40992 0.50939 -0.10449 0.07141 0.29274 0.92354 0.05542 2.06082 5.62464 1.10494 5.31297 0.54723 0.1903 -0.19791 0.75717 1.5057 4.47889 -0.29041 1.06386 0.1782 1.41219 0.3018 5.88187 0.00494

28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

2.16 0.17 -2.91 -1.31 -0.65 1.38 -0.11 2.05 2.13 0.46 -0.58 1.99 0.72 -3.15 3.13 -3.72 1.46 0.91 2.05 0.02 -0.72 -0.11 0.60 0.84 0 -2.93

2.21 0.22 -2.86 -1.26 -0.6 1.43 -0.06 2.1 2.18 0.51 -0.53 2.04 0.77 -3.1 3.18 -3.67 1.51 0.96 2.1 0.07 -0.67 -0.06 0.65 0.89 0

1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.43

1.337 0.097 -0.783 -0.533 -1.673 0.147 0.317 2.757 1.057 0.377 -0.273 1.227 0.117 -1.293 1.677 -1.453 0.787 0.337 0.877 -0.363 -0.603 0.127 0.417 0.147 2.527

1.787569 0.009409 0.613089 0.284089 2.798929 0.021609 0.100489 7.601049 1.117249 0.142129 0.074529 1.505529 0.013689 1.671849 2.812329 2.111209 0.619369 0.113569 0.769129 0.131769 0.363609 0.016129 0.173889 0.021609 6.385729 63.47552

2.95477 0.02134 2.23938 0.67158 1.0038 0.21021 -0.01902 5.7897 2.30426 0.19227 0.14469 2.50308 0.09009 4.0083 5.33286 5.33251 1.18837 0.32352 1.8417 -0.02541 0.40401 -0.00762 0.27105 0.13083 0 86.91608

= 2. ITC LTD.

= 1.37

Calculation of Risk and Return

Date 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 Script Value 229.25 229.25 229.25 229.25 229.25 Return(Rs) in % 0 0 0 0 (Rs-Rs) -0.17 -0.17 -0.17 -0.17 (Rs-Rs)2 0.0289 0.0289 0.0289 0.0289

11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012

229.25 229.25 234.95 241 248 245.3 246.7 246 246 246.65 246 248 247.25 247.25 247.1 245.9 242.8 239 237.1 228 240.2 239.2 234.5 234.25 231.55 228 233.25 238.45 234.5 231 229.55 231.85 229.8 232.55 228.75 228.7 226.85 229.65 226.4 221.85 230.75 232.5 235.5

0 0 2.49 2.58 2.90 -1.09 0.57 -0.28 0 0.26 -0.26 0.81 -0.30 0 -0.06 -0.49 -1.26 -1.57 -0.79 -3.84 5.35 -0.42 -1.96 -0.11 -1.15 -1.53 2.30 2.23 -1.66 -1.49 -0.63 1.00 -0.88 1.19 -1.63 -0.02 -0.81 1.23 -1.42 -2.01 4.01 0.76 1.29

-0.17 -0.17 2.32 2.41 2.73 -1.26 0.4 -0.45 -0.17 0.09 -0.43 0.64 -0.47 -0.17 -0.23 -0.66 -1.43 -1.74 -0.96 -4.01 5.18 -0.59 -2.13 -0.28 -1.32 -1.7 2.13 2.06 -1.83 -1.66 -0.8 0.83 -1.05 1.02 -1.8 -0.19 -0.98 1.06 -1.59 -2.18 3.84 0.59 1.12

0.0289 0.0289 5.3824 5.8081 7.4529 1.5876 0.16 0.2025 0.0289 0.0081 0.1849 0.4096 0.2209 0.0289 0.0529 0.4356 2.0449 3.0276 0.9216 16.0801 26.8324 0.3481 4.5369 0.0784 1.7424 2.89 4.5369 4.2436 3.3489 2.7556 0.64 0.6889 1.1025 1.0404 3.24 0.0361 0.9604 1.1236 2.5281 4.7524 14.7456 0.3481 1.2544

11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

240.75 244.35 245.2 245.35 249.05 243.9 250.4 247.05 252.35 251.4 250.25 247.55 248.1 251.65 -

2.23 1.49 0.35 0.06 1.51 -2.07 2.67 -1.34 2.15 -0.38 -0.46 -1.08 0.22 1.43 10.09

2.06 1.32 0.18 -0.11 1.34 -2.24 2.5 -1.51 1.98 -0.55 -0.63 -1.25 0.05 1.26 -

4.2436 1.7424 0.0324 0.0121 1.7956 5.0176 6.25 2.2801 3.9204 0.3025 0.3969 1.5625 0.0025 1.5876 157.1308

Rs = =

where n= number of trading days= 61

= 0.17% Standard Deviation (SD) = = (157.1308/61) = 1.61% Calculation of Beta

Date Return of ITC Future Stock(Rs) 0 0 0 0 0 0 2.49 2.58 2.90 -1.09 0.57 -0.28 0 (Rs-Rs) -0.17 -0.17 -0.17 -0.17 -0.17 -0.17 2.32 2.41 2.73 -1.26 0.4 -0.45 -0.17 Market index return(Rm) 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 (Rm-Rm) 0.767 -0.653 -1.653 0.187 -0.313 0.967 -1.313 0.367 1.227 0.197 0.617 -0.773 -1.703 (Rm-Rm)2 0.588289 0.426409 2.732409 0.034969 0.097969 0.935089 1.723969 0.134689 1.505529 0.038809 0.380689 0.597529 2.900209 (Rs-Rs) (Rm-Rm) -0.13039 0.11101 0.28101 -0.03179 0.05321 -0.16439 -3.04616 0.88447 3.34971 -0.24822 0.2468 0.34785 0.28951

03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012

24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012

0.26 -0.26 0.81 -0.30 0 -0.06 -0.49 -1.26 -1.57 -0.79 -3.84 5.35 -0.42 -1.96 -0.11 -1.15 -1.53 2.30 2.23 -1.66 -1.49 -0.63 1.00 -0.88 1.19 -1.63 -0.02 -0.81 1.23 -1.42 -2.01 4.01 0.76 1.29 2.23 1.49 0.35 0.06 1.51 -2.07 2.67 -1.34 2.15

0.09 -0.43 0.64 -0.47 -0.17 -0.23 -0.66 -1.43 -1.74 -0.96 -4.01 5.18 -0.59 -2.13 -0.28 -1.32 -1.7 2.13 2.06 -1.83 -1.66 -0.8 0.83 -1.05 1.02 -1.8 -0.19 -0.98 1.06 -1.59 -2.18 3.84 0.59 1.12 2.06 1.32 0.18 -0.11 1.34 -2.24 2.5 -1.51 1.98

0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 -0.02 1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87

0.427 -0.383 -0.243 0.037 0.357 0.757 -0.163 -0.963 -1.953 0.547 -2.223 -0.493 -0.173 -0.733 -0.423 0.717 -1.703 0.257 0.447 0.297 -0.923 -0.503 1.777 -0.013 1.337 0.097 -0.783 -0.533 -1.673 0.147 0.317 2.757 1.057 0.377 -0.273 1.227 0.117 -1.293 1.677 -1.453 0.787 0.337 0.877

0.182329 0.146689 0.059049 0.001369 0.127449 0.573049 0.026569 0.927369 3.814209 0.299209 4.941729 0.243049 0.029929 0.537289 0.178929 0.514089 2.900209 0.066049 0.199809 0.088209 0.851929 0.253009 3.157729 0.000169 1.787569 0.009409 0.613089 0.284089 2.798929 0.021609 0.100489 7.601049 1.117249 0.142129 0.074529 1.505529 0.013689 1.671849 2.812329 2.111209 0.619369 0.113569 0.769129

0.03843 0.16469 -0.15552 -0.01739 -0.06069 -0.17411 0.10758 1.37709 3.39822 -0.52512 8.91423 -2.55374 0.10207 1.56129 0.11844 -0.94644 2.8951 0.54741 0.92082 -0.54351 1.53218 0.4024 1.47491 0.01365 1.36374 -0.1746 0.14877 0.52234 -1.77338 -0.23373 -0.69106 10.58688 0.62363 0.42224 -0.56238 1.61964 0.02106 0.14223 2.24718 3.25472 1.9675 -0.50887 1.73646

22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

-0.38 -0.46 -1.08 0.22 1.43 0 10.09

-0.55 -0.63 -1.25 0.05 1.26 0

-0.37 -0.61 0.12 0.41 0.14 2.52 -0.43

-0.363 -0.603 0.127 0.417 0.147 2.527

0.131769 0.363609 0.016129 0.173889 0.021609 6.385729 63.47552

0.19965 0.37989 -0.15875 0.02085 0.18522 0 41.87384

= 3. ACC LTD.

= 0.66

Calculation of Risk and Return

Date 02-Apr-2012 03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 Script Value 1354.8 1380 1350 1350 1317.75 1249.8 1286.75 1286.75 1249 1261 1300.4 1271 1230.15 1245.9 1224.3 1208.25 1208.95 1207.4 1205 1236.05 1216.5 1204.85 1206.2 1226.85 1213.25 Return(Rs) in % 1.86 -2.17 0 -2.39 -5.16 2.96 0 -2.93 0.96 3.12 -2.26 -3.21 1.28 -1.73 -1.31 0.06 -0.13 -0.19 2.58 -1.58 -0.96 0.11 1.71 -1.11 (Rs-Rs) 2.01 -2.02 0.15 -2.24 -5.01 3.11 0.15 -2.78 1.11 3.27 -2.11 -3.06 1.43 -1.58 -1.16 0.21 0.02 -0.04 2.73 -1.43 -0.81 0.26 1.86 -0.96 (Rs-Rs)2 4.0401 4.0804 0.0225 5.0176 25.1001 9.6721 0.0225 7.7284 1.2321 10.6929 4.4521 9.3636 2.0449 2.4964 1.3456 0.0441 0.0004 0.0016 7.4529 2.0449 0.6561 0.0676 3.4596 0.9216

09-May-2012 10-May-2012 11-May-2012 14-May-2012 15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

1203.45 1201.95 1160.1 1178 1180.35 1177.25 1177.25 1167.5 1151.15 1135.55 1133.65 1156.25 1148 1166.6 1140.15 1161.45 1142.65 1127 1126.4 1126.7 1154.85 1152.55 1149.9 1153.5 1192.7 1184.85 1192.7 1225.2 1215.25 1228.6 1254.25 1253.7 1219.3 1212 1224.45 1207.95 1221.9 -

-0.81 -0.12 -3.48 1.54 0.19 -0.26 0 -0.83 -1.40 -1.36 -0.17 1.99 -0.71 1.62 -2.27 1.87 -1.62 -1.37 -0.05 0.03 2.49 -0.19 -0.23 0.31 3.39 -0.66 0.66 2.72 -0.81 1.09 2.09 -0.04 -2.74 -0.59 1.03 -1.35 1.15 -9.38

-0.66 0.03 -3.33 1.69 0.34 -0.11 0.15 -0.68 -1.25 -1.21 -0.02 2.14 -0.56 1.77 -2.12 2.02 -1.47 -1.22 0.1 0.18 2.64 -0.04 -0.08 0.46 3.54 -0.51 0.81 2.87 -0.66 1.24 2.24 0.11 -2.59 -0.44 1.18 -1.2 1.3 -

0.4356 0.0009 11.0889 2.8561 0.1156 0.0121 0.0225 0.4624 1.5625 1.4641 0.0004 4.5796 0.3136 3.1329 4.4944 4.0804 2.1609 1.4884 0.01 0.0324 6.9696 0.0016 0.0064 0.2116 12.5316 0.2601 0.6561 8.2369 0.4356 1.5376 5.0176 0.0121 6.7081 0.1936 1.3924 1.44 1.69 187.5747

Rs = =

where n= number of trading days= 61

= -0.15% Standard Deviation (SD) = = (187.5747/61) = 1.75% Calculation of Beta

Date Return of ACC Ltd. Future Stock(Rs) 1.86 -2.17 0 -2.39 -5.16 2.96 0 -2.93 0.96 3.12 -2.26 -3.21 1.28 -1.73 -1.31 0.06 -0.13 -0.19 2.58 -1.58 -0.96 0.11 1.71 -1.11 -0.81 -0.12 -3.48 1.54 (Rs-Rs) Market index return(Rm) 0.76 -0.66 -1.66 0.18 -0.32 0.96 -1.32 0.36 1.22 0.19 0.61 -0.78 -1.71 0.42 -0.39 -0.25 0.03 0.35 0.75 -0.17 -0.97 -1.96 0.54 -2.23 -0.50 -0.18 -0.74 -0.43 (Rm-Rm) (Rm-Rm)2 (Rs-Rs) (Rm-Rm) 1.54167 1.31906 -0.24795 -0.41888 1.56813 3.00737 -0.19695 -1.02026 1.36197 0.64419 -1.30187 2.36538 -2.43529 -0.67466 0.44428 -0.05103 0.00074 -0.01428 2.06661 0.23309 0.78003 -0.50778 1.01742 2.13408 0.32538 -0.00519 2.44089 -0.71487

03-Apr-2012 04-Apr-2012 09-Apr-2012 10-Apr-2012 11-Apr-2012 12-Apr-2012 13-Apr-2012 16-Apr-2012 17-Apr-2012 18-Apr-2012 19-Apr-2012 20-Apr-2012 23-Apr-2012 24-Apr-2012 25-Apr-2012 26-Apr-2012 27-Apr-2012 28-Apr-2012 30-Apr-2012 02-May-2012 03-May-2012 04-May-2012 07-May-2012 08-May-2012 09-May-2012 10-May-2012 11-May-2012 14-May-2012

2.01 -2.02 0.15 -2.24 -5.01 3.11 0.15 -2.78 1.11 3.27 -2.11 -3.06 1.43 -1.58 -1.16 0.21 0.02 -0.04 2.73 -1.43 -0.81 0.26 1.86 -0.96 -0.66 0.03 -3.33 1.69

0.767 -0.653 -1.653 0.187 -0.313 0.967 -1.313 0.367 1.227 0.197 0.617 -0.773 -1.703 0.427 -0.383 -0.243 0.037 0.357 0.757 -0.163 -0.963 -1.953 0.547 -2.223 -0.493 -0.173 -0.733 -0.423

0.588289 0.426409 2.732409 0.034969 0.097969 0.935089 1.723969 0.134689 1.505529 0.038809 0.380689 0.597529 2.900209 0.182329 0.146689 0.059049 0.001369 0.127449 0.573049 0.026569 0.927369 3.814209 0.299209 4.941729 0.243049 0.029929 0.537289 0.178929

15-May-2012 16-May-2012 17-May-2012 18-May-2012 21-May-2012 22-May-2012 23-May-2012 24-May-2012 25-May-2012 28-May-2012 29-May-2012 30-May-2012 31-May-2012 01-Jun-2012 04-Jun-2012 05-Jun-2012 06-Jun-2012 07-Jun-2012 08-Jun-2012 11-Jun-2012 12-Jun-2012 13-Jun-2012 14-Jun-2012 15-Jun-2012 18-Jun-2012 19-Jun-2012 20-Jun-2012 21-Jun-2012 22-Jun-2012 25-Jun-2012 26-Jun-2012 27-Jun-2012 28-Jun-2012 29-Jun-2012 Total

0.19 -0.26 0 -0.83 -1.40 -1.36 -0.17 1.99 -0.71 1.62 -2.27 1.87 -1.62 -1.37 -0.05 0.03 2.49 -0.19 -0.23 0.31 3.39 -0.66 0.66 2.72 -0.81 1.09 2.09 -0.04 -2.74 -0.59 1.03 -1.35 1.15 -9.38

0.34 -0.11 0.15 -0.68 -1.25 -1.21 -0.02 2.14 -0.56 1.77 -2.12 2.02 -1.47 -1.22 0.1 0.18 2.64 -0.04 -0.08 0.46 3.54 -0.51 0.81 2.87 -0.66 1.24 2.24 0.11 -2.59 -0.44 1.18 -1.2 1.3 -

0.71 -1.71 0.25 0.44 0.29 -0.93 -0.51 1.77 -0.02 1.33 0.09 -0.79 -0.54 -1.68 0.14 0.31 2.75 1.05 0.37 -0.28 1.22 0.11 -1.30 1.67 -1.46 0.78 0.33 0.87 -0.37 -0.61 0.12 0.41 0.14 2.52 -0.43

0.717 -1.703 0.257 0.447 0.297 -0.923 -0.503 1.777 -0.013 1.337 0.097 -0.783 -0.533 -1.673 0.147 0.317 2.757 1.057 0.377 -0.273 1.227 0.117 -1.293 1.677 -1.453 0.787 0.337 0.877 -0.363 -0.603 0.127 0.417 0.147 2.527

0.514089 2.900209 0.066049 0.199809 0.088209 0.851929 0.253009 3.157729 0.000169 1.787569 0.009409 0.613089 0.284089 2.798929 0.021609 0.100489 7.601049 1.117249 0.142129 0.074529 1.505529 0.013689 1.671849 2.812329 2.111209 0.619369 0.113569 0.769129 0.131769 0.363609 0.016129 0.173889 0.021609 6.385729 63.47552

0.24378 0.18733 0.03855 -0.30396 -0.37125 1.11683 0.01006 3.80278 0.00728 2.36649 -0.20564 -1.58166 0.78351 2.04106 0.0147 0.05706 7.27848 -0.04228 -0.03016 -0.12558 4.34358 -0.05967 -1.04733 4.81299 0.95898 0.97588 0.75488 0.09647 0.94017 0.26532 0.14986 -0.5004 0.1911 0 40.83049

= = 0.64

4.2 References
Books:
Khan M Y, Jain P K, Financial Management, sixth edition, pp-22.1 to 22.4 & pp-28.1 to 28.3. Sasidharan K, Mathews Alex K, Security Analysis and Portfolio Management, pp-284 to 310. http://www.sharetipsinfo.com/stock-market-types.html Viewed at 12.20P.M on date July 14, 2012 http://nseindia.com/products/content/equities/indices/historical_index_data.htm Viewed at 4.30P.M on date July 2, 2012 http://nseindia.com/products/content/equities/equities/eq_security.htm Viewed at 4.00P.M on date July 3, 2012 http://nseindia.com/products/content/derivatives/equities/historical_fo.htm Viewed at 4.15P.M on date July 4, 2012 http://www.slideshare.net/hemanthcrpatna/a-study-on-performance-evaluation-of-equityshares-mutual-funds Viewed at 6.00P.M on date July 11, 2012 http://www.scribd.com/doc/24538633/Comparative-Analysis-of-Equity-and-DerivativeMarket Viewed at 6.15P.M on date July 12, 2012 http://www.nseindia.com/content/nsccl/nsccl_eqcatmargins.htm Viewed at 6.25P.M on date July 8, 2012 http://financelearners.blogspot.in/2011/04/advantages-disadvantages-futures.html Viewed at 7.00P.M on date June 16, 2012 http://daytrading.about.com/od/daytradingbasics/a/MarketPricesMove.htm Viewed at 7.45P.M on date July 16, 2012

Websites: