Disha Final Project

Portfolio Construction in FMCG and Fertilizer Sector.
Introduction to Indian Capital Market.

Capital markets are the sub-part of the financial system. Conceptually, the financial system includes a complex of institutions and mechanism which affects the generation of savings and their transfer to those who will invest. It may be said to be made of all those channels through which savings become available for investments. The main elements of the financial system are the variety of the financial assets/instruments/securities, financial intermediaries/institutions and financial markets.
Classification of financial markets. Organized Martket. Capital Market. Industrial Securities Market. Money Market. Long Term Loan Market Unorganized Market Money lenders, Indigenous bankers etc.
Govt. Securities Market.
Call Money Market.
Commercial Bill Market.
Treasury Bill Market.
Short Term Loan Market .
Money market is created by a financial relationship between suppliers and

demanders of short term funds which have maturities of one year or less. It exists because investors (individual investors, business units, and govt.) have temporarily idle funds that they wish to place in some type of liquid asset or short term interest earning instrument. At the same time other entities find themselves in need of seasonal/temporary financing. The money market brings together these suppliers and demanders of short term liquid funds.
Capital Market is a financial relationship created by number of institutions and

arrangements that allow suppliers and demanders of long-term funds i.e. funds with maturities exceeding 1 year to make transactions.
B.R.C.M. College of Business Administration.

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The capital market comprises of:
1. Industrial securities market.

2. Government securities market. 3. Long-term loan market. I. Industrial securities market.
It is the market for mainly: Equity shares or Ordinary shares, Preference shares, and Debentures or Bonds. Industrial securities market can further be divided into: 1. Primary Market or New Issue Market. 2. Secondary Market or Stock Exchange.
Primary Market.
It is the market for new issues. Hence, it is also called New Issue Market. The primary market deals with those securities which are issued to the public for the first time. In the primary market, borrowers exchange new financial securities for long term funds. Thus, primary market facilitates capital formation. There are three ways by which a company may raise capital in a primary market. They are: (i) Public issue (ii) Right issue (iii) Private placement. The most common method of raising capital by new company is through sale of securities to the public. It is called public issue. When an existing company wants to raise additional capital, securities are first offered to existing share holders on a pre-emptive basis. It is called right issue. Private placement is a way of selling securities privately to a small group of investors.
Functions of primary market. The main function of primary market is to facilitate the transfer of resources from savers to entrepreneurs seeking to establish new enterprise or to expand/diversify existing ones or private companies going public. The general functions of the primary market are:

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1. Origination: It refers to the work of investigation and analysis and processing of new proposals. These two functions are performed by the specialist agencies which act as the sponsors of the issues. One aspect is the preliminary investigation which entails a study on technical, financial and legal aspects of companies to ensure that the company is worthy of stock exchange quotation. These services include advise on capital issues such as: determination the class of security to be issued, timing and magnitude, methods of flotation and technique of selling and so on. 2. Underwriting: It is a form of guarantee that the new issue would be sold by eliminating the risk arising from uncertainty of public response. 3. Distribution: It is the sale of securities to ultimate investors.
Secondary Market.
It is a market for secondary sale of securities. Securities which have already passed through the new issue market are traded in this market. The functions of secondary market include: 1. Nexus between savings and investment: The savings of the community are mobilized and channeled by stock exchanges for investment into those sectors and units which are favored by the community at large, on the basis of such criteria as good return, appreciation of capital, and so on. 2. Market place: The second important function discharged by stock markets is that they provide market place for the purchase and sale of securities, thereby enabling their free transferability who may buy or sell them today or in future for various considerations like meeting their own liquidity, shuffling their portfolios to gear up ever changing market situations and so on. 3. Continuous price formation: The collective judgment of many people operating simultaneously in the market has the effect of bringing about changes in the levels of security prices in small graduations, thereby evening out wide swings in prices. Stock exchange thus acts as a barometer of the state of health of the nations economy, by constantly measuring its progress.

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II.
Government securities.
Securities issued by central government, state government, semi- government authorities like city corporations, port trusts etc. improvement trust, state electricity boards, All India and Sate level financial institutions and public sector enterprise are dealt in this market. They are as follows: Stock certificates or inscribed stock. Promissory notes. Bearer bonds which can be discounted.
III.
Long Term Loans Market.
Developments banks and commercial banks play a significant role in this market by supplying long term loans to corporate customers. Long term loans market includes: Term loans market. Mortgages market. Financial guarantees market.

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Meaning of Portfolio.
Investing in financial securities is now considered to be one of the best avenues for investing ones savings while it is acknowledged to be one of the most risky avenues of investment. It is rare to find investors investing their entire savings in a single security. Instead, they tend to invest in a group of securities. Such a group of securities is called portfolio. Creation of a portfolio helps to reduce the risk without scarifying returns.
Meaning of Portfolio Management.
An investor considering investment in securities is faced with the problem of choosing from among a large number of securities. His choice depends upon the risk-return characteristics of individual securities. He would attempt to choose the most desirable securities and like to allocate his funds over this group of securities. Again he is faced with the problem of deciding which securities to hold and how to invest in each. The investor faces with an infinite number of possible portfolios or group of securities. The investor tries to choose the optimal portfolio taking into consideration the risk return characteristics of all possible portfolios. Portfolio management comprises all the processes involved in the creation and maintenance of an investment portfolio. It deals specifically with security analysis, portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation. It also makes use of analytical techniques of analysis and conceptual theories regarding rational allocation of funds.
Objectives of Portfolio Management. 1. Security of principal: The preservation of the value of the investment account for the sake of future income and growth. This principal should be the dominant force in portfolio management. It seems unwise to save for years to build an investment fund and then lose it in one careless, risky venture. However, security of principal means more than just maintaining the original fund. 2. Stability of income: In establishing an investment fund, an investor should attempt to achieve stability of income as a practical goal. Income received in the form of dividends and interests is somewhat more valuable than a promise of future dividends

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and interests. Stability of revenues allows the investor to plan more accurately and logically, whether goal is reinvestment or consumption. 3. Capital growth: A fund can be built up from reinvested income as well as through the purchase of growth shares. A large fund does provide more income for the investors than a small fund. Capital growth is necessary to improve the long range securities of the investor, to maintain purchasing power, and to offer flexibility of management. 4. Marketability: It refers to whether a security can be bought or sold easily and quickly. High-priced stocks are less marketable than low-priced. Stock of smaller companies tends to have less marketability than those of larger companies because they have a greater number of shares outstanding. 5. Liquidity: Liquidity is desirable in the portfolio because it offers the investor an opportunity to take advantage of attractive opportunities that arise. 6. Diversification: One main reason for diversification is reduction of loss of the risk of loss of capital and income. Investors face an unknown and uncertain future. Since no one can predict future most investors diversify their investments. 7. Favorable tax status: Capital gains are not taxed until they are actually realized. This means that unless income is actually needed, a rupee capital gain is really worth than a rupee income. The key point is that unrealized capital gains are not taxed, whereas as dividend or interest income is. Taxes can be deferred for many years by successful long-term growth stock investing.

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Process of Portfolio Management.

Portfolio management is a process encompassing many activities aimed at optimizing the investment of ones funds. Five phases can be identified in this process:
Securities Analysis. Portfolio Analysis. Portfolio Selection. Portfolio Revision. Portfolio Evaluation.
Each phase is an integral part of the whole process and the success of portfolio management depends upon the efficiency in carrying out each of these phases.
A. Securities Analysis. This step consists of examining the risk-return characteristics of individual securities. There are two alternative approaches to security analysis, namely fundamental analysis and technical analysis. Fundamental analysis, concentrates on fundamental factors affecting the company such as EPS, the dividend pay-out ratio, competition faced, market share, quality of management etc. it not only studies the fundamental factors affecting the company but also the fundamental factors affecting the industry to which the company belongs as also the economy fundamentals. The fundamental analyst works out the true worth or intrinsic value of a security based on fundamentals, than compares this intrinsic value with the currents market price. If current price is higher than the intrinsic value, the share is said to be overpriced and vice versa. An investor would buy those securities

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which are underpriced and sell those which are overpriced. In technical analysis, a technical analyst believes that share price movements are systematic and exhibit certain consistent patterns. He therefore studies past movements in the prices of the shares to identify the trends and patterns. He then tries to predict the future price movements. An investor cannot consistently earn abnormal returns by undertaking fundamental analysis and technical analysis. According to efficient market hypothesis, it is possible for an investor to earn normal returns by randomly choosing securities of a given risk level. B. Portfolio Analysis. Security analysis provides the investor with a set of worthwhile or desirable securities. From this, an infinitely large number of portfolios can be constructed by choosing different sets of securities and also by varying the proportion of investment in each security. The return and risk of each portfolio has to be calculated. Portfolio analysis phase of portfolio management consists of identifying the range of possible portfolios that can be constituted from a given set of securities and calculating their return and risk for further analysis. C. Portfolio Selection. The goal of portfolio construction is to generate a portfolio that provides the highest returns at a given level of risk. A portfolio having this characteristic is known as an efficient portfolio. The inputs from portfolio analysis can be used to identify the set of efficient portfolios. From this set, the optimal portfolio has to be selected. Markowitzs portfolio theory provides both the conceptual framework and analytical tools for determining the optimal portfolio in a disciplined and objective way. D. Portfolio Revision. The investor has to constantly monitor the portfolio to ensure that it continues to be optimal. As the economy and financial markets are dynamic, changes takes place almost daily. The investor has to revise his portfolio in the light of the development in the market. Revision leads to purchase of some new securities and sale of some existing securities. Portfolio revision may also necessary in conditions wherein investor need additional cash, change in risk attitude, need of cash for other alternative use etc.

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E. Portfolio Evaluation. It is the process which is concerned with assessing the performance of the portfolio over a selected period of time in terms of return and risk. Portfolio evaluation is useful in yet another way. It provides a mechanism for identifying weakness in the investment process and fro improving these deficient areas.

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RELIGARE ENTERPRISES LTD
About Religare:
Religare is an integrated financial services institution. The Company offers a diverse bouquet of services, broadly clubbed across three key business vertical Retail, Wealth Management and the Institutional Spectrums. The services range from equities, commodities and insurance broking to wealth advisory, portfolio management services, personal financial services, investment banking and institutional broking services. Religare Enterprises Ltd. is the holding company for all its businesses being operated and structured through its various subsidiaries. Religare retail network spreads across the length and breadth of the country with its presence directly, or through its business associates, in 1,217 locations across 392 cities and towns. Religare registered office is at New Delhi. Religare is proud of being a truly professional financial service provider managed by a highly skilled team, who have proven track record in their respective domains. Religare operations are managed by more than 2000 highly skilled professionals who subscribe to Religare philosophy and are spread across its country wide branches. Religare has a growing network of more than150 branches and more than 300 business partners spread across more than180 cities in India and a fully operational international office at London. However, the target is to have 350 branches and 1000 business partners in 300 cities of India and more than 7 International offices by the end of 2006.

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Unlike a traditional broking firm, Religare group works on the philosophy of partnering for wealth creation. Not only trades are executed for its clients but also they are provided with critical and timely investment advice. The growing list of financial institutions with which Religare is empanelled as an approved broker is a reflection of the high level service standard maintained by the company. Religare Enterprises Limited (REL) is a leading equity and securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of online trading and investments it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity broking, Depository Participant Services, Portfolio Management Services, Institutional Brokerage & Research, Investment Banking and Corporate Finance. To broaden the gamut of services offered to its investors, the company has also recently unveiled a new avatar of its online investment portal armed with a host of revolutionary features. Mr.Sunil Godhwani Chairman & Managing Director of Religare Enterprises Limited. Mr. Mrinal Kampani is area manager of Surat Branch office.

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RSL is a member of the National Stock Exchange of India, Bombay Stock Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and SEBI approved Portfolio Manager. Religare is a Latin word that translates as 'to bind together'. This name has been chosen to reflect the integrated nature of the financial services the company offers. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions, alike. The Religare name is paired with the symbol of a four-leaf clover. Each leaf of the four-leaf clover has a special meaning in the sphere of Religare. 1. The first leaf of the clover represents Hope. 2. The second leaf of the clover represents Trust. 3. The third leaf of the clover represents Care. 4. The fourth and final leaf of the clover represents Good Fortune.
Company Mainly Offering Services.

Equity Trading on NSE & BSE Derivative Trading Commodities Depository Portfolio Management Service (PMS) IPO Mutual Funds Investment Banking International Advisory Fund Management Services (AFMS)

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Objectives.
Primary Objectives: The main objective of the project research is to suggest the investors the optimum combination of the investment options available in FMCG and Fertilizer sector considering the given level of risk so that the investor risk can be minimized and return can be maximized. Secondary Objective: 1. Risk and return analysis of selected scrips using various data analysis tools and techniques like Markowitz model and Sharpe model. 2. To know the relationship between different scrips for diversification. 3. Identifying the different efficient portfolios on the basis of risk and return analysis. Today in the fast growing economy of India, people always look forward to channelize their savings in different investment avenues. Considering this, investors consider not only the equity market but also debt instruments, insurance, oil sector, etc. Today lots of investment advisory firms are opening and these firms manage the portfolio of their clients in an effective manner.
Research Methodology:
Research area: Here the initial analysis will be done in FMCG and Fertilizer sector of the Indian Capital Market in order to have idea regarding the past performance , current scenario and future of the give sector. So the research area will be FMCG and Fertilizer sector of the Indian Capital. Research Type (Research Design) : Research designs are concerned with turning the research question into a testing project. According to David J. Luck and Ronald S. Rubin, "A research design is the determination and statement of the general research approach or strategy adopted/or the particular project. It is the heart of planning. If the research design adheres to the research objective, than it is ensure that the purpose for which the research is carried out will be served."

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Research design is important as it prepares proper framework within which the research work will be actually carried out. Research design acts as a blue print for the research project. Research design gives proper direction and time-table to research activity. It keeps adequate check on the research work and ensures its completion within given time limit. It keeps the whole research project on the right track. Research design avoids possible errors as regards with research problem. Type of Research Design. The topic Portfolio construction in FMCG and Fertilizer sector requires to deal with the secondary data of the companies like their daily price, daily return, index return, here the research design applied is Exploratory research design. As Exploratory research is conducted when the researcher does not know how and why certain phenomenon occurs. Here, the hypothetical solutions or actions are explored and evaluated by the decision-maker. The purpose of exploratory research is to define the marketing problem precisely, collect required information/data relating to the problem and identify alternative courses of action in order to deal with the problem. The secondary/published data can be used for exploratory research as such data are easily available. Population: A research population is generally a large collection of individuals or objects that is the main focus of a research. It is also defined as a well-defined collection of individuals or objects known to have similar characteristics. All individuals or objects within a certain population usually have a common, binding characteristic or trait. Here we have taken the Indian capital market as a population for the project. As here the analysis will be done on FMCG and Fertilizer sector of Indian Capital market. Sampling: A Sampling indicates the part of the total population. It can be an individual element or a group of elements selected from the population for the research study. Although it is a subset, samples are selected with the help of appropriate methods and so it is the representative of the population. The sample group can be selected based on a probability or a non probability approach. Sampling will include the following areas:

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Sampling Frame:
It is the representation or systematic listing of all the elements of target population. It consists of a list of population members to identify target population. Using this database, samples are selected. Here the sampling frame is FMCG and Fertilizer sector companies listed with BSE; as from these two sectors companies will be identified on the basis of specific criteria. Sampling Techniques:
In most surveys, access to the entire population is nearly impossible; however, the results from a survey with a carefully selected sample will reflect extremely closely results that would have been obtained otherwise by surveying the population. Sampling therefore is a very important part of the Market Research process. If one had surveyed using an appropriate sampling technique, one can be confident that results will be generalized to the population in question. Here we select the samples by the method of judgmental sampling techniques on the basis of criteria such as EPS, Dividend pay-out, P/E ratio, market capitalization, bookvalue of the company. From the above mentioned criterias, I have selected 10 companies in FMCG and Fertilizer sector each. I found these companies match with the criterias at best. Performance of FMCG sector companies according to the criterias (data collected on December 2010) Name company of the Criteria for selection EPS Dividend yield (%) HUL ITC Nestle United Spirits Colgate Dabur 9.0 9.0 59. 70 29.50 29.63 2.55 2.26 5.80 1.33 0.23 2.42 1.95 11.84 18.15 145.20 366.30 23.98 4.31 27.04 28.14 42.96 37.67 27.85 40.31 Book Value P/E Ratio Market cap. 62665.31 133199.26 35168.11 14407.07 11222.13 17894.64

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Tata Global Beverages. Britannia Procter and Gamble Marico
2.71
2.21
33.60
33.39
5596.51
6.95 40.07 3.97
1.45 1.33 0.53
33.17 164.70 9.31
49.50 42.30 31.36
4109.11 5502.09 7648.87
Performance of Fertilizer sector companies according to the criterias (data collected on December 2010) Name company of the Criteria for selection EPS Dividend yield (%) Nagarjuna Chambal Oswal 2.61 7.37 1.35 1.84 5.71 22.25 33.40 72.16 10.42 9.50 Book Value P/E Ratio Market cap. 1164.65 2913.45 24.45 crore GNFC GSFC Bharat fertilizers Khaitan 5.88 72.91 9.94 3.26 1.23 0.98 133.77 269.04 18.15 80.60 16.97 5.01 5.73 3.76 1551.08 2908.89 30.1 118.81
chemicals 32.57
and fertilizers Natiopnal fertilizers 3.36 1 32.25 31.25 5151.07

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Sample:
Referring to the sampling frame certain units with the best performance in the given criterias among them are drawn out for the application of research work which is known as a sample. From the above tables, the following companies have been selected for the analysis because they are having a good performance as compare to the other companies present in the sector. Following are the companies selected from each sector: FMCG sector companies : HUL ITC Nestle United Spirits limited Fertilizer sector companies: Nagarjuna Fertilizers Chambal Fertilizers Oswal Chemicals Gujarat Narmada Valley Fertilizers Co. Ltd.(GNFC) Data Collection: Type of data used:
As per the demand of the research work we have to deal with the secondary data. Secondary data are the data collected from censuses, surveys, organizational records and data collected through qualitative methodologies. This type of data collected by someone other than the user in the past. Instruments used in collection of secondary data:
o Internet Stock market websites Old research report upload by any researcher Company site o Magazines o educational books o Company prospectus o Related articles from newspaper.

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Data analysis tools and techniques: On the collected data following techniques are applied to get the perfect result for investors.
Data analysis tools:
Arithmetic Mean: A mathematical representation of the values of a series of

numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series. Arithmetic mean is commonly referred to as "average" or simply as "mean". Arithmetic mean is calculated as follows.
Standard deviation: It is widely used measurement of variability or diversity

used in statistics and probability theory. It shows how much variation or "dispersion" there is from the "average". A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data are spread out over a large range of values. Standard deviation can be calculated by the formula given below.
Variance: Variance is used as a measure of how far a set of numbers are spread
out from each other. It is one of several descriptors of a probability distribution, describing how far the numbers lie from the mean (expected value).
Correlation: A correlation is a single number that describes the degree of

relationship between two variables. Let's work through an example to show you how this statistic is computed.

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r = n(xy) (x.y) (nx2-(x)2). (ny2-(y)2
Regression: A statistical measure that attempts to determine the strength of

the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables). Regression line: Y = a + bX
Portfolio Construction tools: Markowitz model:

Dr. Harry M. Markowitz is credited with developing the first modern portfolio analysis model since the basic elements of modern portfolio theory emanate from a series of propositions concerning rational investor behavior set forth by Markowitz, then of the Rand Corporation, in 1952, and later in a more complete monograph sponsored by the Cowels Foundation. Markowitz used mathematical programming and statistical analysis in order to arrange for the optimum allocation of assets within the portfolio. To reach this objective, Markowitz generated portfolios within a reward-risk context. Markowitzs model is a theoretical framework for the analysis of risk return choices. Decisions are based on the concept of efficient portfolios. Efficient portfolios: This yields highest return with given level of risk or minimum risk with expected return. It is prepared on the basis of addition and deletion of different securities or assets. Set of efficient portfolios is generated with different combinations of securities or assets. Assumptions: Investor considers each alternative with probability distribution of expected return. Investors maximize one period expected utility and possess utility curve which demonstrates diminishing marginal utility of wealth. Risk is on the basis of the variability of expected return.

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Decisions are solely on expected return and variance (or standard deviation) of returns only. For given level of risk, investor prefer higher to lower level of return and for a given level of return, less risk to high risk. Formulas of risk and return according to Markowitz model: Total risk of the portfolio: (2 securities x, y)
Rp= w2x.2x + w2y.2y + 2.rxy. wxx. wyy

Total risk of the portfolio: (3 securities x,y,z) Rp= w x. x + w y. y + w z. z + 2.rxy. wxx. wyy + 2.ryz. wyy. wzz + 2.rxz.
2 2 2 2 2 2
wxx. wzz
Where;
wx= weightage of x in portfolio. x= standard deviation of X r= correlation between two securities.

Total return of the portfolio: Rp= WxRx + WyRy + WzRz.. Where;
wx= weightage of x in portfolio.

Rx = expected return for security X (%)

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Sharp model:
Markowitz model had practical limitation related to compiling expected return, standard deviation, variance, covariance of each security to every other security in the portfolio. Sharp model has simplified this process by relating the return in a security to a single market index. Firstly, this will theoretically reflect all well traded securities in the market. Secondly, it will reduce and simplify the work involved in compiling elaborate matrices of variance as between individual securities. The market index is used as a surrogate (representative) for other individual securities in the portfolio, the relation of any individual security with market index can be represented in a regression line.
Characteristic line:
Ri Rf = + im*(Rm Rf) + ei
Where:
Ri = the holding period return on security i. Rf = the riskless / risk free rate of interest. Rm = holding period return on market index. im = coefficient of regression line of security i on m
For portfolio:
Rp Rf = p + ep + pm*(Rm Rf)
Where:
Rp Rf = excess return on portfolio. p + ep = unsystematic component of portfolios excess return. pm*(Rm Rf) = market (systematic) component of portfolios excess return.

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Optimal portfolio of sharp: If Ri is expected return on stock i Rf is the risk free return than the excess return = (Ri Rf). This has to be adjusted to i namely (Ri Rf / i) which is the equation for ranking the securities in the order of their return adjusted for risk. The method involves selecting a cut off rate for inclusion of securities in a portfolio. Then only those securities which have (Ri Rf / i) > cut off point will be selected in a portfolio. Formula for cut off rate:
Ci = 2m * [(Ri Rf / im)] / 2ei 1 + 2m * (i2m / 2ei)
Where:
Ci = Cut off rate 2m = variance of market index 2ei = residual variance

Formula for weightage:
Wi = Zi / Z
Zi = i2m [(Ri Rf / i) - C] 2ei

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Risk and Return.

Return: The (rate of) return on an asset/investment for a given period, say a year, is the annual income received plus any change in market price, usually expressed as a percent of the opening market price. Symbolically, the one period actual/expected return R: R = Dt + (Pt Pt-1) P t-1 Dt = annual income/cash dividend at the end of time period, t Pt = security price at time period, t (closing security price) Pt-1 = security price at time period, t-1 (opening price) Risk: The variability of the actual return from the expected returns associated with a given asset/investment is defined as risk. The greater the variability, the riskier the security (e.g. equity shares). The more certain the return from an asset (e.g. T-bills) the less the variability and therefore the less the risk. Types of risks.
Risk.
Systematic Risk.
Market Risk. Interest-rate Risk. Inflation Risk.
Unsystematic Risk.
Business Risk.
Financial Risk.
Systematic Risk: It refers to that portion of variability in return which is caused by the factors affecting all the firms. It refers to fluctuation in return due to general factors in the market such as money supply, inflation, economic recessions, interest rate policy of the government, political factors, credit policy, tax reforms, etc. these are the factors which affect almost all firms. The effect of these factors is to cause the prices of all securities to move together. No investor can avoid or eliminate this risk,

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whatever precautions or diversification may be resorted to. The systematic risk is also called the non-diversifiable risk or general risk. Unsystematic risk: Represents the fluctuation in return from an investment due to factors which are specific to the particular firm or industry and not the market as a whole. Since these factors are unique to a particular firm or industry, these must be examined separately for each firm and for each industry. These factors may also be called firm-specific as these affect one firm without affecting the other firms. For example, a fluctuation in price of crude oil will affect the fortune of petroleum companies but not the textile manufacturing companies. As the unsystematic risk results from random events that tend to be unique to an industry or a firm, this risk is random in nature. Unsystematic risk is also called specific risk or diversifiable risk.
Scope of future study: Portfolio construction can also be made considering other investment avenues and other sectors of Indian capital market like banking, IT, pharmaceutical sectors etc. Apart from the selected scrips in each sector, portfolio construction can also be done by selecting other scripts in the same sectors. The research is carried out on the basis of the performance of the scrip during time period of one year only. The research may be carried out for longer period of time also and accordingly the different scrips can be selected on the basis of their performance over the period of time. Limitations of the project: Here, four companies have been selected and analyzed from the FMCG and Fertilizer sector each. These four companies have been selected by checking out the performance of ten companies according to specific criteria but it is not necessary that these four companies performance is always good in a specific sector as the research is carried in a very short period of time. It may be possible that we could have considered the performance of these companies over a longer period of time, the scrips which seem now feasible for selection may ceases to be so. There may be some inaccuracy in the collection of data as the data are collected from secondary sources.

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The performance of economy may not be same every time and change in the economic situation may affect the performance of any particular sector or company positively or negatively.
The research is carried out with the statically instruments like Markowitz model and Sharpe model so the limitation of the instrument inherited in this models will be there in research.

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Overview of FMCG sector.

FMCG is the acronym of Fast Moving Consumer Goods which is also known as Consumer Packaged Goods (CPG). Fast moving consumer goods are products that have a quick turnover, and relatively low cost. FMCG generally include a wide range of often purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, condoms, batteries, paper products and plastic goods. In comparison with other industries such as automobiles, computers, and airlines, FMCG business has a steady rate of growth, for it does not suffer from huge recession and layoffs every time the economy starts to dip. In FMCG business absolute profit made on the products is relatively small. Since they generally sell in large numbers, the overall profit on such products can be huge. The Indian FMCG sector is the fourth largest in the economy and has a market size in excess of US$14.7 billion in Oct 2009. The current market size is US$19.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments, low operational cost are the characteristics of this sector. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth. FMCG in India has a strong and competitive MNC presence across the entire value chain.

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Analysis of FMCG Sector

Strengths: 1. Low operational costs. 2. Presence of established distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector. Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors. 2. Low exports levels. 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: 1. Untapped rural market. 2. Rising income levels i.e. increase in purchasing power of consumers. 3. Large domestic market- a population of over one billion. 4. Export potential. 5. High consumer goods spending. Threats: 1. Removal of import restrictions resulting in replacing of domestic brands. 2. Slowdown in rural demand. 3. Tax and regulatory structure.

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FMCG category and products.

Category Products:
Fabric wash (laundry soaps and synthetic detergents); Household Care. household cleaners(dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish). Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; Food and Beverages. coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Oral care, hair care, skin care, personal wash (soaps); cosmetics Personal Care. and toiletries; deodorants; perfumes; feminine hygiene; paper products.
FMCG: Present and Future Scenario.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India and captures a market capitalization of around 60,000 crore rupees. This has been due to liberalization, urbanization and increase in the disposable incomes and altered lifestyle of the people. The lower-middle income group accounts for over 60% of the sector's sales and rural markets account for 56% of the total domestic FMCG demand. Around 58% of total disposable income is spent on FMCG products and from this 40% of the portion is spent on grocery and eatables and 10% is spent on personal care products. FMCG sector is expected to grow by over 60% by 2011 and by 2015; the sector is predicted to scale up to US$33.4 billion. India will become the worlds fifth largest consumer market by 2025 moving up from its position in 2007 as 12th largest consumer market. The sector is expected to grow at a base rate of at least 12 per cent annually to become an Rs 4, 00,000 crore industry in 2020. India has always been a good market for FMCG industry for its large population base. And even today, the story is not any different as it (the industry) features among the worlds

29
fastest moving industry. More so, the growth story of FMCG in India has been phenomenal so far. With more than ever rising consumer spending, the industry is set to touch new records it terms of innovation and growth. There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors. FMCG sector is long established and over the years, sustaining ups and downs of the Indian economy. Thus the Critical operating rules in Indian FMCG sector can be summarized as follows: Heavy launch costs on new products on launch advertisements, free samples and product promotions. Majority of the product classes require very low investment in fixed assets. Existence of contract manufacturing. Marketing assumes a significant place in the brand building process. Extensive distribution networks and logistics are key to achieving a high level of penetration in both the urban and rural markets. Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganized sector. Providing good price points is the key to success.
Exports.
India is one of the worlds largest producers of a number of FMCG products but its exports are a very small proportion of the overall production. Total exports of food processing industry were $6.9 billion in 2008-09 and marine products ac-counted for 40 per cent of the total exports. Though the Indian companies are going global, they are focusing more on the overseas markets like Bangladesh, Pakistan, Nepal, Middle East countries because of the similar lifestyle and consumption habits between these countries and India. Hindustan Lever Limited (HLL), Godrej Consumer, Marico, Dabur and Vicco Laboratories are amongst the top exporting companies.

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Top 10 players in FMCG sector (India).

1. HUL (Hindustan Unilever Limited). 2. ITC (Indian Tobacco Company). 3. Nestle India Limited. 4. Colgate. 5. Dabur India. 6. Tata Global Beverages. 7. Cadbury India. 8. Britannia Industries. 9. Procter & Gamble Hygiene and Health Care. 10. Marico Industries.

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Overview of Fertilizer sector.

Fertilizer sector is a very crucial for Indian economy because it provides a very important input to agriculture. The fertilizer industry in India has played a pivotal role in achieving self sufficiency in food grains as well as in rapid and sustained agriculture growth. The growth of the Indian fertilizer industry has been largely determined by the policies pursued by the government. The government exercised extensive controls on the pricing, distribution and movement of fertilizers. The industry is capital intensive and the production process energy intensive with the combined cost of feedstock and fuel accounting for anywhere between 55 and 80 per cent of cost of production, depending on the type of fertilizers. The increasing pressure of population on the available land resources necessitates higher agricultural productivity, which can be achieved through more intensive use of fertilizer nutrients. Fertilizer is generally defined as any material (organic or inorganic; natural or synthetic) which supplies one or more of the essential chemical elements to the plants. Broadly, sixteen elements have been identified as necessary for plant growth, of which nine are required in macro quantities and seven in micro quantities. As far as production of fertilizers is concerned, the Indian fertilizer industry, by meeting the demand for almost all chemical fertilizers, has played a key role in the development of the agricultural sector. At present, there are 56 large size fertilizer units in the country, manufacturing a wide range of nitrogenous and phosphate/ complex fertilizers. Of these, 30 units produce urea; 21 units produce DAP (Di-Ammonium Phosphate) and complex fertilizers; 5 units produce low analysis straight nitrogenous fertilizers; and 9 units produce ammonium sulphate as a by-product. Besides, there are about 72 small and medium scale units producing single super phosphate (SSP). As a result, India is the third largest fertilizer producer in the world after China and the United States, with an estimated installed capacity of 120.61 lakh MT of nitrogen and 56.59 lakh MT of phosphate (as on 30.01.2008). This rapid build-up of fertilizer production capacity in the country has been achieved as a result of a favorable policy environment facilitating large investments in the public, co-operative and private sectors. The private sector produced 44.73 % of nitrogenous fertilizers and 62.08 % of phosphatic fertilizers in 2006-07. The production of nitrogenous fertilizer in the private sector has been increasing in the past few years. The private sector had

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only 13% share in the production in 1960-61. The private sector has always retained a higher share in the production of phosphatic fertilizer production. Indian fertilizer industry has reached international levels of capacity utilization by adopting various strategies for increasing the productions of fertilizers. These include the following: Expansion and increase in efficiency through modernization and revamping of existing fertilizer units. Reviving some of the closed fertilizer plants. Using alternative sources, such as coal or liquefied natural gas for the production of fertilizers, especially urea. Establishing joint venture projects with companies in countries like Senegal, Oman, Jordan, Morocco, Egypt, Tunisia and other countries that abound in cheaper resources of raw materials.
Challenges before Indian Fertilizer Industry.

The challenges before the Indian fertilizer industry relate to the incertitude in the supply of fertilizers. There has been a surge in the demand for fertilizers in the past few years. Good monsoonal showers have led to the growth in agriculture, inadvertently increasing the consumption rate of fertilizers. However, the robust growth in consumption propensity has not been met with the required surge in fertilizer production. This has widened the gap between the demand and supply of fertilizers, which has led to an increase in the dependence of the country on imports. This also reflects on the lack of realizing of the domestic capacity utilization of the reserves in the country. Another important factor that has led to the stunted growth of the fertilizer industry is the rise in prices of the feedstock. The fertilizer industry is dependent on gas for the production of urea and phosphoric acid for the production of phosphatic fertilizers and DAP. The country imports its inputs from other countries. The overseas suppliers of raw materials realize the predicament of the Indian fertilizer industry and have started exploiting the shortage through clever pricing.

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In recent years, some of the private companies, dedicated to the production of fertilizers have affectively taken stakes in the overseas sources of raw materials.
Future Trends
India's demand for fertilizers in 2007-08 was 26 MM tons, which went up to 29 MM tons in 2008-09 against a supply of 20 MM tons in 2008-2009. The demand for fertilizers in 2011-12 is forecasted to be around 35.5 MM tons. More fertilizer projects are in the pipeline. Gujarat is expected to play a leading role in fertilizer production. Indian companies have penetrated the overseas market, signaling a new phase for the industry.
Private Companies Producing Fertilizer in India.

Gujarat State Fertilizer Company Limited Coromondel Fertilisers Limited Khaitan Chemicals and Fertilizers limited Southern Petrochemicals Inds. Corpn. Ltd. Mangalore Chemicals & Fertilizers Limited Gujarat Narmada Valley Fertilisers Co. Ltd. National Fertilizers Bharat Fertlizers. Godavari Fertilizers & Chemicals Limited Nagarjuna Fertilizers & Chemicals Limited Chambal Fertilizers & Chemicals Limited

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Companies overview selected for portfolio construction.

Companies selected in FMCG sector. Hindustan Unilever Limited (HUL):
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The Anglo-Dutch company Unilever owns a 52% majority stake. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. It estimates that two out of three Indians use its many home and personal care products, food and beverages. The company owns 35 major Indian brands. Its brands include Kwality Wall's ice cream, Knorr soups & meal makers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit water purifier, Lipton tea, Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams, Lakm beauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach, Domex disinfectant, Modern Bread, Axe deosprays and Comfort fabric softeners.

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Financial Performance.
Stock price movement considering the movement of SENSEX and FMCG index.
Key-highlights of the company: 2009-2010 2009-2008 2008-2007 2007-2006
Dividend (per share) EPS Profit after tax (crore) Sales 17,523.80(crore) 20,239.33(crore) 13,71,775(lakhs) 12,10,339 (lakhs) 9.0 2,102.68 8.10 2,500.71 7.20 1,743.12 7.60 1,539.67 6.50 7.50 9.00 6.00

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ITC Limited:
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. ITC Limited public conglomerate company headquartered in Kolkata, India. Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has its registered office in Kolkata. The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000. ITC Limited completed 100 years on 24 August 2010. List of products & brands. In FMCG, ITC has a strong presence in: Cigarettes: W. D. & H. O. Wills, Gold Flake Kings, Gold Flake Premium, Navy Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Mild & Ultra Mild), 555, Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players and Flake. Foods: Kitchens of India; Ashirvaad; Minto; Sunfeast; Candyman; Bingo; Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods; Apparel: Wills Lifestyle and John Players brands;

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Personal care: Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel brands of products in perfumes, haircare and skincare Stationery: Classmate and Paperkraft brands Safety Matches and Agarbattis: [Ship (through ownership of WIMCO); iKno; Mangaldeep; Aim brands] Other businesses include: Hotels: ITC's hotels (under brands including ITC Hotel /Welcomhotel) have evolved into being India's second largest hotel chain with over 80 hotels throughout the country. ITC is also the exclusive franchisee in India of two brands owned by Sheraton International Inc. - The Luxury Collection and Sheraton which ITC uses in association with its own brands in the luxury 5 star segment. Brands in the hospitality sector owned and operated by its subsidiaries include Fortune and Welcomheritage brands. Paperboard, Specialty Paper, Graphic and other Paper; Packaging and Printing for diverse international and Indian clientele. Infotech (through its near-wholly owned subsidiary ITC Infotech India Limited
Key-highlights of the company:

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2009-2010 Dividend (per share) EPS 9.0 10
2008-2009 3.70
2007-2008 3.50
2006-2007 3.10
8.00 3263.59
7.70 3120.10
6.70 2699.97
Profit after 4061.00 tax (crore) Sales (crore) 18153.19
15611.92
13947.53
12369.30

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Nestl:
Nestl S.A. is one of the largest food and nutrition companies in the world, founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 merger of the AngloSwiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lacte Henri Nestl Company, which was founded in 1866 by Henri Nestl. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 people. Its turnover is CHF (Swiss franc) 109.72 billion. Nestl has 6,000 brands, with a wide range of products across a number of markets including coffee (Nescaf), bottled water, other beverages (including Aero (chocolate) & Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.
Stock price movement considering the movement of SENSEX and FMCG index

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Dividend (per share) 12.50 12.50 -
EPS
59.70
48.20 5,340,822
37.50 4,138,122
29.10 3,150,965
Profit after 6,550,028 tax (crore) Sales (thousands) 51,293,767
43,242,450
35,043,532
28,160,646
United Spirits Limited (USL):
United Spirits Limited (USL) - the INR 5700 crore spirits arm of the UB Group is Indias largest and the worlds 2nd largest spirits company. USL was earlier McDowell and Company Limited. USL has a portfolio of more than 140 brands, of which 19 are

43
millionaire brands* (selling more than a million cases a year) and enjoys a strong 59% market share for its first line brands in India. United Spirits recorded global sales of 90 million cases for the fiscal year that ended on March 31, 2009.
United Spirits brands have won the most prestigious of awards across flavors, ranging from the Mondial to International Wine and Spirit Competition (IWSC) to International Taste and Quality Institute (ITQI); a total of 108 awards and certificates (as of June 2009). The company is known to be an innovator in the industry and has several firsts to its credit such as the first pre-mixed gin, the first Tetrapack in the spirits industry in India, the first single malt manufactured in Asia and the first diet whisky in the world.
USL has a well-established global network with exports to over 59 countries. It has a sizeable presence in India with distilleries and sales offices all across and a dedicated team of over 7500 people simplemindedly committed to fulfilling the company's objective of becoming a world leader. It has established manufacturing and bottling plants in every state of India. To deliver its products to customers located anywhere in India, USL has also established a robust distribution network across the country.

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Dividend (per share) EPS 2.50 29.50 2.00 29.30 2,966.624 1.50 30.80 3,112.759 1.00 51.80 4,940.194
Profit after 3,760.215 tax (million) Sales (million) 45,241.276
37,476.623
28,441.815
24,366.783

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Companies selected in Fertilizer sector. Nagarjuna Fertilizers and Chemicals Limited
The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals Limited is a leading manufacturer and supplier of plant nutrients in India. Commencing operations in 1985, today our asset base is around Rs. 21 billion. We have the distinction of being the single largest private sector investment in Southern India. An ISO 9001:2000 certified company, our operational profits are one of the highest in the industry. We assume market leadership in the markets we operate. Nagarjuna Group is a dream willed into reality by its visionary Founder Shri KVK Raju. Shri KVK Raju a first generation technopreneur was born in a humble agricultural family in Andhra Pradesh on November 28, 1928. He joined Union Carbide of India and stayed there for 15 years. While working with Union Carbide, KVK's deep-rooted urge to serve society through industry impelled him to start a venture of his own. Thus was born Nagarjuna Group in 1973 with an investment of US$ 23 million. The Group has since then come a long way to become a diversified conglomerate with an asset base of US$ 2.5 billion. Our broad portfolio of products and services include: Nutrition solutions: Macro and Micro fertilizers and Farm Management services. Micro Irrigation solutions.

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Chambal Fertilizers & Chemicals Limited.
Chambal Fertilizer and Chemicals, also known as Chambal Fertilizers and Chemicals Limited (CFCL) is an India-based fertilizer manufacturing company established in 1985. Chambal Fertilizer and Chemicals belongs to the legendary K K Birla Group and the main business activity of Chambal Fertilizers and Chemicals Limited involves the manufacture of fertilizer. Chambal Fertilizers and Chemicals Limited is one of the largest private sector fertilizer producers in India. Chambal Fertilizers has three divisions - agri-inputs, shipping and textiles. It has diversified into other sectors through its subsidiaries in the software and in the infrastructure sector. It also has a joint venture in Morocco for manufacturing phosphoric acid. Chambal Fertilizers and Chemicals Limited is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries Limited in the year 1985. Its two hi-tech nitrogenous fertilizer (urea) plants are located at Gadepan in Kota district of Rajasthan. Built at a price of over Rs. 25 billion (USD 500 million), the two plants produce about 2 million tones of Urea per annum. The first plant was commissioned in 1993 and second plant in 1999. These plants use state-of-the-art technology including that from Denmark, Italy, United States and Japan. Chambal Fertilizers caters to the need of the farmers in ten states in Northern, Central and Western regions of India and is the lead fertilizer supplier in the State of Rajasthan. The Company has a vast marketing network comprising 11 regional offices, 1,300 dealers and 20,000 village level outlets. The Company has donned the mantle of providing all agriproducts through a single window to enable the farmer to buy all products from one source. The Company dealers provide Urea and other agri-inputs like DAP (Di-Ammonium Phosphate), MOP (Murate of Potash), SSP (Single Super Phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the Uttam

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umbrella brand. Today, the Company has attained a leadership position in the pesticide business in North India.
Stock price movement considering the movement of SENSEX
Oswal Chemicals & Fertilizers Limited:
Incorporated in 1981, Oswal Chemicals & Fertilisers Ltd (OCFL) belongs to the Oswal Agro Group of companies promoted by Abhay Oswal. OCFL (formerly known as Bindal Agro Chem Ltd) was initially started as a trading company and entered into the manufacture of refined vegetable oil through acquisitions. The company acquired the LDPE division of ICI, which was later shut down as operations became uneconomical. In a major diversification, OCFL in FY96 commissioned an Rs 1368-mn gas-based urea plant at Shajahanpur in Uttar Pradesh. OCFL has the capacity to produce 850,000 tonn per annum of urea at Shahjahapur in UP. The company has exited from its vegetable oil business. The fertilizer business is predominantly equity-financed, leading to a lower cash cost of production, increasing the companys competitiveness over new gas-based urea plants. OCFL has units at Nangal, Bhatinda and Panipat and Vyajpur. The company changed its name in September 1995 to Oswal Chemicals & Fertilizers Limited.

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The company has a 5000 strong workforce and its annual turnover is to the tune of 1209 crores as on the year ended 31st March 2003. The Group ranks among the top twenty Indian business houses in terms of net worth. It leads the industry in the production of agrobased products, petrochemicals, alcohol chemicals and nitrogenous fertilizers. It leads the way in phosphatic fertilizer and power sectors by setting up the world's largest grass root DAP plant at Paradeep in Orissa. The company's manufacturing plants use the latest available technology. Another area of interest for the management is its personnel, who are well looked after. Its plants are located throughout India. In the north, at Ludhiana, Shahjahanpur etc, in the west at Mumbai and in the east at Calcutta.
Gujarat Narmada Valley Fertilizers Co. Ltd.:
Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC), is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizer Company Ltd.(GSFC). It was set up in Bharuch, Gujarat in 1976. Located at Bharuch in an extremely prosperous industrial belt, GNFC draws on the resources of the natural wealth of the land as well as the industrially rich reserves of the area. GNFC started its manufacturing and marketing operations by setting up in 1982, one of the world's largest single-stream ammonia-urea fertilizer complexes. Over the next few years, GNFC successfully commissioned different projects - in fields as diverse as chemicals, fertilizers and electronics. The Gujarat Narmada Valley Fertilizers Co. Ltd.'s main activities are to produce and distribute chemicals, fertilizers, IT solutions, and electronic goods. The Fertilizers Co. of Gujarat Narmada Valley has a Urea plant which is the world's single largest stream plant and also an Ammonia plant which too is one of the largest in the world. The main idea behind manufacturing fertilizers by the company is to make a broad range of fertilizers easily available to the community of farmers in India. In order to ensure fertilizers of the best quality for its customers, the Gujarat Narmada Valley Fertilizers Co. had set up a

49
research and development center in 1986. A qualified team of technologists and scientists check and maintain the quality of fertilizers that are manufactured by the company. GNFC today has extended its profile much beyond fertilizers through a process of horizontal integration. Chemicals/Petrochemicals, and Information Technology Energy form Sector, and
Electronics/Telecommunications
ambitious
challenging additions to its corporate portfolio. GNFC has an enterprising, strategic view towards expansion and diversification.
Stock price movement considering the movement of SENSEX

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Calculation of Markowitz model

Name of the company Particulars FMCG United HUL Avg return (expected return) 0.0782 S.D. 1.5196 3.5050 1.6151 2.0090 2.3874 2.7347 3.2034 2.0552 -0.0590 0.1809 0.0619 0.0237 0.1761 0.3060 0.0651 ITC Nestle Spirits Nagarjun Chambal Oswal GNFC Fertilizer
Correlation matrix of FMCG and Fertilizer companies.

Oswal Oswal Chambal GNFC Nagarjun ITC HUL 1 0.299 0.254 0.381 0.035 0.123 1 0.596 0.838 0.051 0.186 1 0.643 0.043 0.140 1 0.082 0.213 1 0.12 1 NESTLE -0.008 0.078 0.163 0.081 0.09 3 US 0.162 0.198 0.162 0.258 0.01 9 0.219 0.110 1 0.191 1 1 Chambal GNFC Nagarjun ITC HUL NESTLE US
According to the Markowitz model, the securities between which there is the least correlation or the negative correlation will be selected. In this case, two securities Nestle and Oswal is selected because the correlation between them is negative than all the other combinations. The correlation between these two securities is (-0.008) which is lesser than all

51
the other combinations. Here we take the Oswal security as security (x) and Nestle security as (Y) and we will calculate the weightage as per the below formula.
Wx = 2y x * y * rxy 2x + 2y 2 *x*x*rxy
=
(1.6151*1.6151-3.2034*1.6151*-0.008)
(3.2034*3.2034+1.6151*1.6151-
(2*3.2034*1.6151*-0.008)) = 0.2046
Approximately= 20% Wx = 0.2046 Now, Wy = 1 - Wx Wy = 1 0.2046 Wy = 0.7954 Approximately = 80% So as per the Markowitz model, investor should invest 20% in Oswal and 80% in Nestle security to get the maximum return by minimizing the risk

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Calculation of Sharpe model

In Sharpe model first calculation of alpha and beta is done by the formulas given below. Betaxy () = N * xy - x * y
N * y2 (y)2
Alphaxy = mean of Y * (mean of Y)
Name of the company
FMCG United Particulars Beta HUL 0.24602 ITC 0.05238 Nestle 0.12644 Spirits 0.24160
Fertilizer
Nagarjun 0.19114
Chambal 0.11188
Oswal 0.09181
GNFC 0.15879
Alpha
0.04941
0.071735
0.04576
0.05367
0.06411
0.04894
0.04055
Further calculations are done as per the table below.
(Rimean return Securities Oswal (Ri) Beta (im) Rf)*im unsystematic Ei risk (ei) -0.4427 i m Ei
2
(Ri(i2m/Ei) 0.00842724 0.0125
Rf)*im Ei Ci -0.4608 -1.2337
0.3060 0.0918 0.9678
0.000000008 -0.4427 -1.1905
Chambal
0.1761 0.118
0.9606
-0.7478
0.0130 -2.4522 0.0249 -2.5069
GNFC
0.0651 0.1578 0.9489
-0.1218
0.0262

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0.0365 Nagarjuna 0.0237 0.1911 0.8456 ITC 0.0590 0.0523 1.0208 -0.4677 0.0027 0.0662 HUL 0.0782 0.2460 0.9143 -2.0669 -7.5866 Nestle United Spirits 0.0619 0.2416 0.8181 -2.2869 0.0713 0.1809 0.1264 1.0128 -0.8198 0.0158 -9.8735 0.0584 0.0160 -6.7668 0.0605 -1.7799 0.0432 -4.2322 -4.6998 0.0027
-4.2529
-4.9232
-6.6462
-7.8396
-9.6487
Rf variance
8
1.05048
From the above table no single security can be selected in the portfolio. Because as per the criteria of Sharpe model the securities can be selected when Ci is greater than (RiRf)/im i.e. when the cut-off rate is greater than . So by following this rule no security can be selected for the portfolio. So for the better investment opportunity and to construct more efficient portfolio, one should consider other sectors of economy or can consider the same sector, the scrips other then selected as a sample for portfolio construction.

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Conclusion and Suggestions:

On the basis of various data collected for each selected sample scrip, a portfolio has been constructed by using two techniques. They are; Markowitz model. Sharp model. According to the Markowitz model analysis and findings, two securities namely Oswal and Nestle are selected for a portfolio construction out of the 8 securities. Both the companies are negatively correlated with each other. So the performance of one company does not depends upon the other and so in this way investor can diversify his fund for minimizing the risk and maximizing the return. So in case if one scrip does not perform well than it is not necessary that the other scrip will also not perform well and so the investor will be able to get return and advantage of one scrip which is performing well. The calculations suggest that the weight age of Oswal is 80% and that of Nestle is 20%. The main motive of Markowitz model is to diversify the risk by selecting the negatively correlated or least correlated scrips having the ideal weightage of 49% and 51%. But as per the analysis, by selecting this investment option investor cannot diversify the risk up to the satisfactory level as the weightage of the scrips came to be at 20% and 80% which is not considered to be ideal or nearer to ideal. So he should not go with this investment pattern, alone. Along with the Markowitz according to the Sharp model calculations also, no security can be selected for a portfolio construction out of the 8 analyzed securities because from all these securities no combination of the securities can help investor to get the maximum return at minimized level of risk. So as per the calculations and findings, the sharp model resulted into disselection of security whereas Markowitz calculations suggested a portfolio of two securities. This indicates that with the help of Markowitz and Sharpe model, optimum portfolio cannot be constructed. Because of this reason it is always better to have more number of securities in a portfolio because it helps to minimize the risk and maximize the return of the portfolio or investor should try other portfolio construction theory other then these two. Also the investor can consider other sectors of the economy for portfolio construction. In true sense, the

55
portfolio of any investor does not consists of only equity, but it also consist of debt and other long term and short term investment avenues and the scrips are selected on the basis of the market trend, fundamentals of the company, state of the economy and such and less of with the help of theoretical tools like Markowitz Model and Sharpe Model.

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Bibliography.
Internet Text books Company Prospectus http://business.mapsofindia.com/india-company/g/gujarat-narmadavalley-fertilisers.html www.gnfc.in http://economictimes.indiatimes.com/oswal-chemicals-&-fertilizersltd/infocompanybackground/companyid-13950.cms http://www.nagarjunafertilizers.com/social.htm http://www.chambalfertilisers.in/ http://www.economywatch.com/indian-fertilizerindustry/challenges.html http://www.naukrihub.com/india/fmcg/scope/ http://www.economywatch.com/world-industries/fmcg.html http://www.economywatch.com/business-and-economy/fertilizerindustry.html http://business.gov.in/Industry_services/fertilizers.php http://www.indiainfoline.com/Markets/Company/Fundamentals/KeyRatios/ITC-Ltd/500875 www.hul.co.in www.nestle.com ITCportal.com www.theubgroup.com http://www.nseindia.com/content/equities/eq_historicaldata.htm www.moneycontrol.com www.religare.in www.businessindia.com Securities Analysis and Portfolio Management by V.A.Avdhani, 2001. Investment management by V.K.Bhalla, 2010. Portfolio Management by S. Kevin Prospector by Religare security, Explore Endless Opportunities

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Daily closing share price of the companies selected as a sample for the analysis for the year 2010. (Fertilizer sector)
Date 04-Jan-10 05-Jan-10 06-Jan-10 07-Jan-10 08-Jan-10 11-Jan-10 12-Jan-10 13-Jan-10 14-Jan-10 15-Jan-10 18-Jan-10 19-Jan-10 20-Jan-10 21-Jan-10 22-Jan-10 25-Jan-10 27-Jan-10 28-Jan-10 29-Jan-10 01-Feb-10 02-Feb-10 03-Feb-10 04-Feb-10 05-Feb-10 06-Feb-10 08-Feb-10 09-Feb-10 10-Feb-10 11-Feb-10 15-Feb-10 16-Feb-10 17-Feb-10 18-Feb-10 19-Feb-10 22-Feb-10 23-Feb-10 Oswal 21.05 21.35 21.3 21 21.05 21.5 21.1 21.15 21.3 21.3 21.7 22.95 22.65 22.1 21.15 20.8 18.9 19.15 20 20.25 20.05 19.95 19.6 18.65 19.2 19.85 19.7 19.1 19.35 19.1 19.2 19.25 19.75 19.2 18.75 18.1 Chambal 63.65 63.25 64.95 64.4 64.1 65.65 63.8 64.3 64.6 65.3 67.75 70.8 67.85 69.15 67.1 67.2 61.8 61.85 64.9 66.2 67.2 67.7 67 64.25 67.3 71.95 72.25 68.85 70.1 68.7 69.65 69.45 71.3 68.15 64.45 62.05 GNFC 110.4 113.75 115.85 114.65 111.2 112.2 112.85 112.9 115.65 114.05 115.05 122.6 123.4 125.7 123.55 121.45 114.1 110.55 118.75 120.2 117.25 119.2 116.25 116.25 115.9 117.7 119.45 117.1 116.5 114.7 115.7 115.5 119.8 115.25 110.9 108.9 Nagarjun 34.65 34.75 35.65 35.4 35.1 35.8 35.85 36.25 36.25 36.55 37.35 38.95 37.8 37.5 36.2 35.65 32.8 31.85 33.9 34.55 34.45 35 34.15 32.7 33.5 35.35 35.5 34.2 34.65 34.2 34.6 34.85 36 35.4 33.85 33

58
24-Feb-10 25-Feb-10 26-Feb-10 02-Mar-10 03-Mar-10 04-Mar-10 05-Mar-10 08-Mar-10 09-Mar-10 10-Mar-10 11-Mar-10 12-Mar-10 15-Mar-10 16-Mar-10 17-Mar-10 18-Mar-10 19-Mar-10 22-Mar-10 23-Mar-10 25-Mar-10 26-Mar-10 29-Mar-10 30-Mar-10 31-Mar-10 01-Apr-10 05-Apr-10 06-Apr-10 07-Apr-10 08-Apr-10 09-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10
17.95 17.9 18.1 18.15 18.35 18.55 18.35 18.25 18 17.5 17.55 17.3 17 16.9 16.85 16.95 16.95 16.6 16.6 16.55 16.65 16.3 16.65 16.3 17.7 18.35 18.4 18.75 18.5 18.65 18.65 18.65 18.65 18.55 18.1 18.4 18.25 18.8 18.7 18.55 18.8
61.95 61.9 62.2 61.15 60.1 62 61.85 61.2 61.3 59.4 59.35 58.65 57.75 59.05 58.8 58.75 61.1 62.7 61.9 60.15 60.3 61.4 61.4 61.45 61.95 62.8 62.45 62.5 61.65 62.1 62.95 63.35 62.5 61.75 60.65 61.75 61.85 64.2 64.5 65.45 66.3
107.25 109.2 107.4 107.85 109.35 111.65 113.45 113.75 110.6 111.4 109.55 109.05 107.6 108.2 108.35 107.85 108.15 107.25 107.05 107.9 108.9 110.05 111.6 112.4 111.65 113.1 115.35 116.8 114.6 113.65 116.8 116.05 116.7 118.1 115.95 118.2 120.6 121.9 118.55 118.35 119.65
32.6 32.55 32.85 32.65 32.7 33.4 33.3 33 32.8 32.5 32.1 31.95 30.85 31.3 31.25 30.9 31.45 31.15 30.8 30.1 30.3 30.95 31 30.75 31 31.65 31.4 31.3 31.35 31.35 31.9 32.25 31.65 31.3 30.6 31.1 30.95 31.75 31.9 32.2 33

59
28-Apr-10 29-Apr-10 30-Apr-10 03-May-10 04-May-10 05-May-10 06-May-10 07-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10 24-May-10 25-May-10 26-May-10 27-May-10 28-May-10 31-May-10 01-Jun-10 02-Jun-10 03-Jun-10 04-Jun-10 07-Jun-10 08-Jun-10 09-Jun-10 10-Jun-10 11-Jun-10 14-Jun-10 15-Jun-10 16-Jun-10 17-Jun-10 18-Jun-10 21-Jun-10 22-Jun-10 23-Jun-10
18.15 18.05 18.1 17.9 17.45 17.2 17.3 16.85 17.2 17.35 17.1 17.1 16.65 15.95 16 15.6 15.2 14.3 14.5 14.05 14.3 14.05 14.9 15.65 15.8 15.9 16.05 16.25 15.6 15.5 15.55 15.7 15.8 15.8 16.2 16.55 16.8 16.7 16.65 16.5 16.75
63.8 65.4 65.75 64.7 62.95 63.15 62.8 60.45 59.25 61.1 59.75 60 59.5 59.75 59.85 57.85 56.25 55.55 56.05 53.2 54 55.75 56.65 58.45 62.1 61.65 62.05 61.75 60.4 59.5 60.35 60.15 60.4 61.85 62.6 63.35 62.65 61.8 62.2 62.75 63.5
117.55 116.6 120.35 120.15 116.95 116.65 115.25 112.65 114.65 117 116.15 115.7 113.55 113.9 114.4 112.4 110.9 109.1 109.5 107.2 109.4 105.3 105.1 105.65 107.7 107.3 106.9 106.75 106.75 105.15 107.1 106.15 105.85 107.65 107.35 107.4 107.4 106.3 107.5 106.6 108
31.8 31.8 32.75 32.7 31.9 32.3 32 30.9 31.6 31.95 31.55 31.45 31.1 31.3 31.35 30.3 28.75 28.3 28.05 27.1 27.4 28.35 29.05 29.55 29.9 29.95 29.95 29.85 28.6 28.3 28.55 28.85 28.6 29.25 29.9 30 29.95 29.25 29.85 29.95 31.1

60
24-Jun-10 25-Jun-10 28-Jun-10 29-Jun-10 30-Jun-10 01-Jul-10 02-Jul-10 05-Jul-10 06-Jul-10 07-Jul-10 08-Jul-10 09-Jul-10 12-Jul-10 13-Jul-10 14-Jul-10 15-Jul-10 16-Jul-10 19-Jul-10 20-Jul-10 21-Jul-10 22-Jul-10 23-Jul-10 26-Jul-10 27-Jul-10 28-Jul-10 29-Jul-10 30-Jul-10 02-Aug-10 03-Aug-10 04-Aug-10 05-Aug-10 06-Aug-10 09-Aug-10 10-Aug-10 11-Aug-10 12-Aug-10 13-Aug-10 16-Aug-10 17-Aug-10 18-Aug-10 19-Aug-10
16.6 16.95 17.1 16.8 16.75 16.6 17.2 17.4 17.15 17.1 17.1 17 16.95 17.25 16.9 16.85 17.15 17.15 16.65 16.85 16.9 16.85 16.9 16.65 16.45 18.25 17.35 17.5 17.3 17.2 17.15 17.65 17.55 17.65 17.6 17.45 17.3 17.1 17.1 17.55 17.3
64.05 63.85 64.8 64.85 66.3 65.35 67.25 68.85 67.75 68.05 67.2 67.85 67.9 67.5 66.4 65.65 66.75 66.8 65.65 66.05 67.55 68.3 68 67.95 68.2 68.6 66.3 67.5 67.05 66.8 66.6 67.55 69 67.1 67.15 66.7 66.85 68.35 67.75 72.45 72.15
107.3 107.5 110.6 108.45 110.3 110.55 114.2 118.8 119.1 117.5 116.9 115.55 118.45 117 116.35 117.5 116.5 116.2 115.35 115.05 118.65 115.85 115.55 115.45 114.25 113.3 114.8 116.4 115.45 113.95 115.1 119.75 118.5 117.1 117.65 116.35 118.9 119.05 118.95 130.4 128.05
31.2 31.3 31.75 31.6 32.05 31.65 33 34.4 33.95 33.85 33.6 33.7 33.8 33.65 32.65 32.3 32.45 32.35 31.8 31.75 32.1 31.65 31.4 31.25 30.9 30.8 30.5 31.05 30.75 30.45 30.2 30.7 31.3 30.65 30.7 30.5 30.2 30.85 30.55 32.05 31.9

61
20-Aug-10 23-Aug-10 24-Aug-10 25-Aug-10 26-Aug-10 27-Aug-10 30-Aug-10 31-Aug-10 01-Sep-10 02-Sep-10 03-Sep-10 06-Sep-10 07-Sep-10 08-Sep-10 09-Sep-10 13-Sep-10 14-Sep-10 15-Sep-10 16-Sep-10 17-Sep-10 20-Sep-10 21-Sep-10 22-Sep-10 23-Sep-10 24-Sep-10 27-Sep-10 28-Sep-10 29-Sep-10 30-Sep-10 01-Oct-10 04-Oct-10 05-Oct-10 06-Oct-10 07-Oct-10 08-Oct-10 11-Oct-10 12-Oct-10 13-Oct-10 14-Oct-10 15-Oct-10 18-Oct-10
17.25 17.4 17.15 16.45 16.25 16.2 16.15 16.15 16.4 16.45 16.65 16.9 16.75 16.95 17.15 17.05 16.8 16.7 16.6 16.8 17.1 16.5 18.3 17.3 17.35 17.4 17.25 17 16.85 16.95 16.9 16.95 17.75 17.45 17.15 18.6 18.55 20.3 20.4 19.6 19.15
71.25 72.3 71.3 68.8 67.6 66.8 66.3 66.45 68.75 70.2 73.8 72.75 72.8 72.5 75.9 75.15 73.65 73.5 72.2 72.4 73.65 72.25 72.1 70.95 71.8 70.75 71.3 69.95 68.9 71 71.8 72.85 75.65 74.2 74.1 82 81.35 81 90.15 92.85 85.95
125.65 125.7 124.9 126.2 122.95 120.85 121.25 120.55 122.4 120.05 121.6 121.35 123.15 123.25 127.6 127.15 125.3 124 124.1 125.45 124.45 121.2 118.95 119.35 119.8 118.55 121.35 120.7 120.35 121.75 120.8 119.75 124.85 122.45 119.5 122.9 123.8 123.25 128.15 128.65 129.35
31.65 31.8 31.75 31 30.45 29.9 29.3 29.3 29.85 30.45 31.7 31.6 31.4 31.55 32.15 32.15 31.5 31.3 30.8 31.3 31.95 31.15 31.25 30.75 31.2 30.75 30.65 29.95 29.75 30.7 30.8 30.8 33.55 32.6 31.5 34.05 33.95 34.6 36.05 35.8 34.25

62
19-Oct-10 20-Oct-10 21-Oct-10 22-Oct-10 25-Oct-10 26-Oct-10 27-Oct-10 28-Oct-10 29-Oct-10 01-Nov-10 02-Nov-10 03-Nov-10 04-Nov-10 05-Nov-10 08-Nov-10 09-Nov-10 10-Nov-10 11-Nov-10 12-Nov-10 15-Nov-10 16-Nov-10 18-Nov-10 19-Nov-10 22-Nov-10 23-Nov-10 24-Nov-10 25-Nov-10 26-Nov-10 29-Nov-10 30-Nov-10 01-Dec-10 02-Dec-10 03-Dec-10 06-Dec-10 07-Dec-10 08-Dec-10 09-Dec-10 10-Dec-10 13-Dec-10 14-Dec-10 15-Dec-10
19.15 18.7 18.8 19.35 22.6 20.8 20.85 19.9 19.8 21.1 21.85 21.8 22.25 22.85 22.95 22.8 23.35 22.8 22.2 21.25 21.1 21.75 22.1 21.7 20.85 20.55 22.3 22.1 21.8 22.35 22.75 22.8 22.05 22.1 22.15 23.05 23.05 22 22.45 22.5 24.6
84.6 84.65 86.35 86.95 87.1 86.55 82.1 82.5 80.05 82.05 86.25 92.45 93.85 93.65 98.9 103.65 99.35 98.25 96.45 92.55 90.25 91.75 89.8 85.45 88.65 89.1 87.5 85.25 93.5 91.15 94.45 92.15 90.25 86.9 83.95 79.5 73.85 79.05 79.75 82 81.3
128.4 126.25 126.5 126.15 130.65 132.85 128.75 130 124.5 128.05 126.55 132.05 131.75 134.35 135.65 143.05 141.3 142.9 137.15 135.1 128.75 128.4 125.3 123.05 124.05 123.8 123.4 118.95 124.3 123 126.7 129.3 125.15 126.05 122.5 119 111.35 114.5 117.45 118.85 116.45
33.9 33.65 34.2 34.6 34.25 34 33.3 33.65 33.8 34.1 35.65 37.45 38.35 38.05 39.4 40.85 41.25 40.9 39.25 36.5 35.35 36.1 35.05 33.5 34.1 33.2 31.6 30.6 32.6 32.35 33.55 32.85 32.2 31.65 31.2 30 27.85 28.9 29.4 30.1 29.35

63
16-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 31-Dec-10
26.75 25.9 26 27.6 29.75 32.15 37.55 38.45 39.5 39.05 40.05
82.85 83.85 85.55 84.55 83.6 85.4 85.15 84.8 84.5 87.8 90.25
116.9 118.95 118.1 119.2 121.1 121 120.25 121 120.5 121.8 123.35
30.1 30.35 30.5 30.65 30.95 32.3 31.9 32.1 32.75 33.75 34.25
Daily closing share price of the companies selected as a sample for the analysis for the year 2010. (FMCG sector)
Date 04-Jan-10 05-Jan-10 06-Jan-10 07-Jan-10 08-Jan-10 11-Jan-10 12-Jan-10 13-Jan-10 14-Jan-10 15-Jan-10 18-Jan-10 19-Jan-10 20-Jan-10 21-Jan-10 22-Jan-10 25-Jan-10 27-Jan-10 28-Jan-10 29-Jan-10 01-Feb-10 02-Feb-10 03-Feb-10 ITC 253.65 256.15 256.75 255.95 256.5 256.6 250.05 248.95 248.15 252.75 250.55 249.9 247.1 244.5 249.1 255.1 255.9 254.25 250.15 246.5 244.4 252.6 HUL 264.7 263.85 265.35 264.8 265.95 266.1 262.15 262.5 256.05 256.4 257.3 255.45 257.8 256.75 257.95 263.95 259.35 255.3 242.3 237.25 236.5 236.45 NESTLE 2503.05 2501.85 2500.65 2499.45 2494.65 2498.95 2502.85 2489.35 2568.2 2513.5 2536.15 2556.1 2542.5 2526.2 2529 2522.25 2566.9 2586.85 2533 2532.2 2560.1 2564.6 UNITED SPIRITS 1317.8 1334.65 1384.55 1364.05 1347.25 1360.3 1359.75 1325.55 1323.75 1272.6 1277.45 1277.65 1265.65 1220.7 1288.4 1249.55 1207 1264.3 1234.95 1255.25 1253.05 1286.1

64
04-Feb-10 05-Feb-10 06-Feb-10 08-Feb-10 09-Feb-10 10-Feb-10 11-Feb-10 15-Feb-10 16-Feb-10 17-Feb-10 18-Feb-10 19-Feb-10 22-Feb-10 23-Feb-10 24-Feb-10 25-Feb-10 26-Feb-10 02-Mar-10 03-Mar-10 04-Mar-10 05-Mar-10 08-Mar-10 09-Mar-10 10-Mar-10 11-Mar-10 12-Mar-10 15-Mar-10 16-Mar-10 17-Mar-10 18-Mar-10 19-Mar-10 22-Mar-10 23-Mar-10 25-Mar-10 26-Mar-10 29-Mar-10 30-Mar-10 31-Mar-10 01-Apr-10 05-Apr-10
253.35 248.35 248.05 245.35 243.9 243.9 247.15 249.35 250.15 251.75 248.25 248.5 247.6 249.25 247.65 247.6 232.25 241.95 243.7 246.05 244.75 251.25 251.05 254.25 255.65 258.45 259.35 259.8 262.85 261.25 261.3 261.6 260.95 264.75 264.4 269.2 268.85 263.05 264 264.8
231.05 229.05 231 236.5 232.6 230.1 233.4 229.75 237.15 240.55 242.5 241 246.15 244.9 242.15 235.2 236.2 234.45 239.1 243.45 243 238.75 236.05 239.75 228.8 219.4 225.55 226.7 223.9 224.85 228.95 228.25 228.5 232 238.5 239.7 241.85 239.55 230.4 229.1
2568.35 2549.1 2566.4 2645.5 2792.6 2750.2 2737.25 2719.25 2701.85 2688.75 2651.5 2640.15 2584.9 2552.2 2574.7 2559.6 2626.9 2625.45 2629.15 2634 2701.15 2725.95 2745.2 2739.95 2732.75 2715.45 2744.8 2672.35 2678.55 2668.05 2646.35 2634.7 2653.85 2648.35 2687.4 2712.9 2670.65 2670.6 2709.5 2719.1
1284.75 1241.8 1266.15 1274.85 1279.35 1277.85 1301.65 1285.85 1308.2 1343.7 1335.05 1338.05 1330.3 1309.1 1337.65 1309.5 1354.15 1384.9 1445.7 1447 1489.2 1477.1 1468.55 1465.2 1433.05 1419.3 1425.85 1420.25 1373.2 1341.7 1373.55 1335.9 1355.9 1323.2 1342.05 1344.4 1341.55 1321.4 1335.2 1375.9

65
06-Apr-10 07-Apr-10 08-Apr-10 09-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 03-May-10 04-May-10 05-May-10 06-May-10 07-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10 24-May-10 25-May-10 26-May-10 27-May-10 28-May-10 31-May-10 01-Jun-10
266.25 269.45 267.75 269.25 271.4 268.6 262.75 269.1 264.85 263.2 262.45 264.25 266.95 267.4 269.55 269.95 267.15 265.85 264.95 262.3 262.15 259.05 259.15 261.8 259.55 265.05 266.5 268.15 266.15 268.65 259.2 262.4 271.3 268.05 260.5 269.1 275.9 283.2 283.2 283
229.9 225 222.7 221.35 224.5 223.55 225.45 227 224.75 227.8 232.85 237.35 239.1 241.5 242.65 241.95 235.6 239.8 233.75 232.35 228.75 232.15 234.6 236.95 236.85 238.5 238.2 233.9 240.05 240.05 233.35 236.95 230.7 231.7 230.55 231.55 233 236.35 237.2 233.8
2760.15 2751.15 2718.55 2700.95 2694.85 2714.55 2747.75 2747.15 2760.95 2773.25 2813 2877.4 2722.1 2755.6 2793.65 2799.55 2789.65 2763.1 2750.65 2751.35 2754.3 2754.2 2731.55 2794.55 2747.6 2790.45 2790.45 2806.6 2852.95 2948.6 2945.65 2893.85 2788.1 2903.2 2777.1 2809.95 2836.35 2860.65 2879.2 2855.4
1330 1334.8 1337.65 1351.5 1334.5 1330.75 1273.65 1232.85 1215.45 1247.45 1263.65 1237.4 1250.7 1225.2 1215.85 1206.6 1211.25 1257.5 1291.2 1247.35 1270.8 1244.35 1216.1 1237.85 1229.45 1246.3 1229.95 1226.5 1233 1212.85 1201.05 1191.5 1161.5 1171.05 1097.2 1150.95 1163.75 1201.65 1224 1200.5

66
02-Jun-10 03-Jun-10 04-Jun-10 07-Jun-10 08-Jun-10 09-Jun-10 10-Jun-10 11-Jun-10 14-Jun-10 15-Jun-10 16-Jun-10 17-Jun-10 18-Jun-10 21-Jun-10 22-Jun-10 23-Jun-10 24-Jun-10 25-Jun-10 28-Jun-10 29-Jun-10 30-Jun-10 01-Jul-10 02-Jul-10 05-Jul-10 06-Jul-10 07-Jul-10 08-Jul-10 09-Jul-10 12-Jul-10 13-Jul-10 14-Jul-10 15-Jul-10 16-Jul-10 19-Jul-10 20-Jul-10 21-Jul-10 22-Jul-10 23-Jul-10 26-Jul-10 27-Jul-10
281.3 285.5 290.85 287.7 289.7 277.6 280.05 281.55 286.1 291.7 290.9 293.9 294.9 299.1 301.8 302.85 305.75 301.45 297.65 296.35 305.45 303 302.55 302.15 302.9 302 303.15 300.35 299.95 299.1 298.5 300.1 298.35 291.35 291.45 292.35 297.7 301.65 302.7 304.25
237.75 247.05 251.7 251.05 251.4 249.55 252 252.75 255.45 260.15 255.9 253 257.75 258.75 261.75 266.2 270.9 266.25 266.75 262.65 267.55 272.5 268.4 266.15 267.35 267.6 266.45 262.4 262.15 259.8 257.6 263.35 266.15 264.6 262.65 261.75 262.3 261.95 261.95 260.4
2837.6 2807.1 2810.3 2796.8 2821.25 2861.85 2892.1 2897.7 2904.6 2908.4 2928.65 2916.25 2951.9 2996.8 2911.85 2899.2 2939.4 2907.55 2907.4 2897.85 2879.55 2942.9 2978.5 3084.8 3091.05 3033.95 3047.7 2984 2994.9 2985.05 2989.55 2977.25 3022.9 2992.15 2999.75 2951.1 2949.9 2952.75 3007.6 2992.65
1216.15 1219.1 1236.75 1221.9 1229.8 1225.25 1212.85 1221.2 1228.85 1256.35 1254.3 1237.75 1263.1 1266.95 1257.25 1270 1292.65 1297.95 1311.25 1299.85 1310.25 1289.4 1272.55 1276.75 1274.6 1278 1288.55 1291.6 1307.65 1305.9 1314.95 1342.3 1368.55 1408.25 1397.4 1383.4 1381.55 1369.95 1378.8 1377.2

67
28-Jul-10 29-Jul-10 30-Jul-10 02-Aug-10 03-Aug-10 04-Aug-10 05-Aug-10 06-Aug-10 09-Aug-10 10-Aug-10 11-Aug-10 12-Aug-10 13-Aug-10 16-Aug-10 17-Aug-10 18-Aug-10 19-Aug-10 20-Aug-10 23-Aug-10 24-Aug-10 25-Aug-10 26-Aug-10 27-Aug-10 30-Aug-10 31-Aug-10 01-Sep-10 02-Sep-10 03-Sep-10 06-Sep-10 07-Sep-10 08-Sep-10 09-Sep-10 13-Sep-10 14-Sep-10 15-Sep-10 16-Sep-10 17-Sep-10 20-Sep-10 21-Sep-10 22-Sep-10
307.35 310.1 308.75 312.8 154.4 155.3 155.8 158.75 158.95 157.25 154.95 152.95 156.25 158.25 159.55 162.5 165.3 162.7 159.5 159.85 160.5 163.9 161.2 159.3 163.15 163.15 165.45 164 165.8 166.2 164.3 162.35 163.2 165.2 167.65 167.4 168.35 176.65 172.65 174.7
252.35 256.5 251.45 253.45 253.35 256.65 255.3 255.05 256.05 260.2 261.25 266 265.8 269.9 265.65 269.25 274.05 268.9 268.85 269.65 268 265.65 263.95 263.65 264.5 266.55 269.9 272.9 271.65 270.65 274.25 279.05 279.15 278.15 278.05 278.1 281.8 293.2 294.95 298
2961.1 2965.5 3020.65 3022.8 2962.95 2907.1 2798.3 2769.9 2790.8 2818.7 2828.1 2830.8 2800.4 2763.95 2727.15 2753.35 2816.5 2879.95 2910.3 2947.05 2966.95 3077.6 3061.7 3106.8 3078.8 3069.1 3129.55 3178.25 3207.6 3204.3 3209.05 3170.05 3182.7 3203.9 3156.9 3190.75 3263.3 3269.6 3308.55 3295
1414.7 1442.25 1385 1406.55 1431.75 1440.35 1455.35 1428.35 1460.15 1445.2 1426.5 1413.75 1417.35 1404.2 1401.2 1407.9 1435.4 1430.6 1416.8 1396.45 1375.35 1393.3 1382.05 1395.6 1432.45 1552.75 1518.2 1517.75 1527.65 1528.25 1519.85 1553.8 1624 1599.3 1610.1 1601.9 1625.9 1626.85 1602.25 1568.65

68
23-Sep-10 24-Sep-10 27-Sep-10 28-Sep-10 29-Sep-10 30-Sep-10 01-Oct-10 04-Oct-10 05-Oct-10 06-Oct-10 07-Oct-10 08-Oct-10 11-Oct-10 12-Oct-10 13-Oct-10 14-Oct-10 15-Oct-10 18-Oct-10 19-Oct-10 20-Oct-10 21-Oct-10 22-Oct-10 25-Oct-10 26-Oct-10 27-Oct-10 28-Oct-10 29-Oct-10 01-Nov-10 02-Nov-10 03-Nov-10 04-Nov-10 05-Nov-10 08-Nov-10 09-Nov-10 10-Nov-10 11-Nov-10 12-Nov-10 15-Nov-10 16-Nov-10 18-Nov-10
176.5 179.25 178.4 178.4 173.6 178.3 178.65 175.25 173.8 172.9 171.9 172.45 172.95 170.95 175.1 175.05 171.95 171.55 170.5 168 174.35 171.2 169.15 171.75 167.85 167.05 171.2 171.85 173.4 175.55 177 177.15 175.65 177.8 177 175.35 173.85 175.15 169.95 171.95
303.3 314.95 308.85 306.2 306 309.05 309.7 308.55 304 301.15 296.35 295.8 294.85 291.8 303.35 299.15 298.6 296.95 297 293.4 306.45 301.25 306.3 298.25 293 291.3 294.7 294.55 294.6 296 299.2 302.85 306.65 319 314.75 309.2 301.8 303.7 298.45 299.55
3257.65 3313.25 3338 3349.05 3340.8 3382.15 3360.5 3311.9 3269.45 3197.6 3209.85 3251.35 3219.65 3299.05 3304.8 3261.45 3198 3208.05 3314.55 3312.1 3405.25 3403.85 3442.7 3449.3 3398.65 3463.15 3484.45 3550.4 3552.6 3609.95 3649.25 3661 3732 4002.35 3858.6 3800.2 3830.15 3901.6 3896.6 3762.3
1575.95 1601.5 1566.95 1591.35 1600.7 1573.35 1599.3 1671.25 1627.55 1639.05 1597.5 1576.4 1584 1533.15 1562.05 1555.65 1527.55 1537.3 1572.4 1557.95 1590.6 1555.95 1553 1609.4 1591.15 1487.1 1495.15 1496.7 1495.65 1491.3 1505.85 1513 1505.65 1495.35 1473.4 1433.45 1400.1 1399.45 1398.7 1397.35

69
19-Nov-10 22-Nov-10 23-Nov-10 24-Nov-10 25-Nov-10 26-Nov-10 29-Nov-10 30-Nov-10 01-Dec-10 02-Dec-10 03-Dec-10 06-Dec-10 07-Dec-10 08-Dec-10 09-Dec-10 10-Dec-10 13-Dec-10 14-Dec-10 15-Dec-10 16-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 31-Dec-10
170.95 175.9 172.5 173.7 169.7 167.65 168.6 171.9 171.4 170.9 171.3 169.05 168.2 166.75 167.3 170.3 167.15 168.4 167 168.05 166.95 167.15 167.4 166.9 169.9 169.75 171.2 174.2 174.55 174.65
299 299.65 300.3 299.8 297.2 293.1 297.8 298.25 297.6 296.95 299.25 300.3 295.75 296.4 289.1 296 301 298.25 298.75 294 295.15 293.75 293.5 291.1 295 296.25 294.4 304.7 309.3 312.9
3624.85 3707.9 3690.95 3792.8 3761.15 3561.5 3566.25 3625.35 3568.05 3646.2 3671.1 3745.7 3739.65 3741.5 3718.3 3785.8 3885.75 3779.9 3614.85 3566.6 3567.85 3610.65 3668.65 3679.8 3676.35 3686.4 3663.95 3663.7 3741.55 3813.75
1387.85 1393.85 1399 1393.7 1393.35 1318.7 1332.65 1389.75 1410.95 1415.85 1403.5 1432.15 1457.2 1431.15 1364.8 1362.45 1375.9 1415.4 1421.4 1440.55 1466.65 1471.3 1466.85 1453.05 1459.45 1430.7 1467.7 1482.4 1460.2 1463.75

70
Daily return of the companies selected as a sample for the year 2010. Daily return is calculated with the help of following formula: (Fertilizer sector) Daily Return = Todays close Previous Close * 100 Previous Close
Date 04-Jan-10 05-Jan-10 06-Jan-10 07-Jan-10 08-Jan-10 11-Jan-10 12-Jan-10 13-Jan-10 14-Jan-10 15-Jan-10 18-Jan-10 19-Jan-10 20-Jan-10 21-Jan-10 22-Jan-10 25-Jan-10 27-Jan-10 28-Jan-10 29-Jan-10 01-Feb-10 02-Feb-10 1.4252 -0.2342 -1.4085 0.2381 2.1378 -1.8605 0.2370 0.7092 0.0000 1.8779 5.7604 -1.3072 -2.4283 -4.2986 -1.6548 -9.1346 1.3228 4.4386 1.2500 -0.9877 Oswal -0.6284 2.6877 -0.8468 -0.4658 2.4181 -2.8180 0.7837 0.4666 1.0836 3.7519 4.5018 -4.1667 1.9160 -2.9646 0.1490 -8.0357 0.0809 4.9313 2.0031 1.5106 Chambal 3.0344 1.8462 -1.0358 -3.0092 0.8993 0.5793 0.0443 2.4358 -1.3835 0.8768 6.5624 0.6525 1.8639 -1.7104 -1.6997 -6.0519 -3.1113 7.4175 1.2211 -2.4542 GNFC 0.2886 2.5899 -0.7013 -0.8475 1.9943 0.1397 1.1158 0.0000 0.8276 2.1888 4.2838 -2.9525 -0.7937 -3.4667 -1.5193 -7.9944 -2.8963 6.4364 1.9174 -0.2894 Nagarjun

71
03-Feb-10 04-Feb-10 05-Feb-10 06-Feb-10 08-Feb-10 09-Feb-10 10-Feb-10 11-Feb-10 15-Feb-10 16-Feb-10 17-Feb-10 18-Feb-10 19-Feb-10 22-Feb-10 23-Feb-10 24-Feb-10 25-Feb-10 26-Feb-10 02-Mar-10 03-Mar-10 04-Mar-10 05-Mar-10 08-Mar-10 09-Mar-10 10-Mar-10 11-Mar-10
-0.4988 -1.7544 -4.8469 2.9491 3.3854 -0.7557 -3.0457 1.3089 -1.2920 0.5236 0.2604 2.5974 -2.7848 -2.3438 -3.4667 -0.8287 -0.2786 1.1173 0.2762 1.1019 1.0899 -1.0782 -0.5450 -1.3699 -2.7778 0.2857
0.7440 -1.0340 -4.1045 4.7471 6.9094 0.4170 -4.7059 1.8155 -1.9971 1.3828 -0.2872 2.6638 -4.4180 -5.4292 -3.7238 -0.1612 -0.0807 0.4847 -1.6881 -1.7171 3.1614 -0.2419 -1.0509 0.1634 -3.0995 -0.0842
1.6631 -2.4748 0.0000 -0.3011 1.5531 1.4868 -1.9674 -0.5124 -1.5451 0.8718 -0.1729 3.7229 -3.7980 -3.7744 -1.8034 -1.5152 1.8182 -1.6484 0.4190 1.3908 2.1033 1.6122 0.2644 -2.7692 0.7233 -1.6607
1.5965 -2.4286 -4.2460 2.4465 5.5224 0.4243 -3.6620 1.3158 -1.2987 1.1696 0.7225 3.2999 -1.6667 -4.3785 -2.5111 -1.2121 -0.1534 0.9217 -0.6088 0.1531 2.1407 -0.2994 -0.9009 -0.6061 -0.9146 -1.2308

72
12-Mar-10 15-Mar-10 16-Mar-10 17-Mar-10 18-Mar-10 19-Mar-10 22-Mar-10 23-Mar-10 25-Mar-10 26-Mar-10 29-Mar-10 30-Mar-10 31-Mar-10 01-Apr-10 05-Apr-10 06-Apr-10 07-Apr-10 08-Apr-10 09-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10
-1.4245 -1.7341 -0.5882 -0.2959 0.5935 0.0000 -2.0649 0.0000 -0.3012 0.6042 -2.1021 2.1472 -2.1021 8.5890 3.6723 0.2725 1.9022 -1.3333 0.8108 0.0000 0.0000 0.0000 -0.5362 -2.4259 1.6575 -0.8152
-1.1794 -1.5345 2.2511 -0.4234 -0.0850 4.0000 2.6187 -1.2759 -2.8271 0.2494 1.8242 0.0000 0.0814 0.8137 1.3721 -0.5573 0.0801 -1.3600 0.7299 1.3688 0.6354 -1.3418 -1.2000 -1.7814 1.8137 0.1619
-0.4564 -1.3297 0.5576 0.1386 -0.4615 0.2782 -0.8322 -0.1865 0.7940 0.9268 1.0560 1.4085 0.7168 -0.6673 1.2987 1.9894 1.2570 -1.8836 -0.8290 2.7717 -0.6421 0.5601 1.1997 -1.8205 1.9405 2.0305
-0.4673 -3.4429 1.4587 -0.1597 -1.1200 1.7799 -0.9539 -1.1236 -2.2727 0.6645 2.1452 0.1616 -0.8065 0.8130 2.0968 -0.7899 -0.3185 0.1597 0.0000 1.7544 1.0972 -1.8605 -1.1058 -2.2364 1.6340 -0.4823

73
22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 03-May-10 04-May-10 05-May-10 06-May-10 07-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10 24-May-10 25-May-10 26-May-10 27-May-10
3.0137 -0.5319 -0.8021 1.3477 -3.4574 -0.5510 0.2770 -1.1050 -2.5140 -1.4327 0.5814 -2.6012 2.0772 0.8721 -1.4409 0.0000 -2.6316 -4.2042 0.3135 -2.5000 -2.5641 -5.9211 1.3986 -3.1034 1.7794 -1.7483
3.7995 0.4673 1.4729 1.2987 -3.7707 2.5078 0.5352 -1.5970 -2.7048 0.3177 -0.5542 -3.7420 -1.9851 3.1224 -2.2095 0.4184 -0.8333 0.4202 0.1674 -3.3417 -2.7658 -1.2444 0.9001 -5.0847 1.5038 3.2407
1.0779 -2.7482 -0.1687 1.0984 -1.7551 -0.8082 3.2161 -0.1662 -2.6633 -0.2565 -1.2002 -2.2560 1.7754 2.0497 -0.7265 -0.3874 -1.8583 0.3082 0.4390 -1.7483 -1.3345 -1.6231 0.3666 -2.1005 2.0522 -3.7477
2.5848 0.4724 0.9404 2.4845 -3.6364 0.0000 2.9874 -0.1527 -2.4465 1.2539 -0.9288 -3.4375 2.2654 1.1076 -1.2520 -0.3170 -1.1129 0.6431 0.1597 -3.3493 -5.1155 -1.5652 -0.8834 -3.3868 1.1070 3.4672

74
28-May-10 31-May-10 01-Jun-10 02-Jun-10 03-Jun-10 04-Jun-10 07-Jun-10 08-Jun-10 09-Jun-10 10-Jun-10 11-Jun-10 14-Jun-10 15-Jun-10 16-Jun-10 17-Jun-10 18-Jun-10 21-Jun-10 22-Jun-10 23-Jun-10 24-Jun-10 25-Jun-10 28-Jun-10 29-Jun-10 30-Jun-10 01-Jul-10 02-Jul-10
6.0498 5.0336 0.9585 0.6329 0.9434 1.2461 -4.0000 -0.6410 0.3226 0.9646 0.6369 0.0000 2.5316 2.1605 1.5106 -0.5952 -0.2994 -0.9009 1.5152 -0.8955 2.1084 0.8850 -1.7544 -0.2976 -0.8955 3.6145
1.6143 3.1774 6.2447 -0.7246 0.6488 -0.4835 -2.1862 -1.4901 1.4286 -0.3314 0.4156 2.4007 1.2126 1.1981 -1.1050 -1.3567 0.6472 0.8842 1.1952 0.8661 -0.3123 1.4879 0.0772 2.2359 -1.4329 2.9074
-0.1899 0.5233 1.9404 -0.3714 -0.3728 -0.1403 0.0000 -1.4988 1.8545 -0.8870 -0.2826 1.7005 -0.2787 0.0466 0.0000 -1.0242 1.1289 -0.8372 1.3133 -0.6481 0.1864 2.8837 -1.9439 1.7059 0.2267 3.3017
2.4691 1.7212 1.1844 0.1672 0.0000 -0.3339 -4.1876 -1.0490 0.8834 1.0508 -0.8666 2.2727 2.2222 0.3344 -0.1667 -2.3372 2.0513 0.3350 3.8397 0.3215 0.3205 1.4377 -0.4724 1.4241 -1.2480 4.2654

75
05-Jul-10 06-Jul-10 07-Jul-10 08-Jul-10 09-Jul-10 12-Jul-10 13-Jul-10 14-Jul-10 15-Jul-10 16-Jul-10 19-Jul-10 20-Jul-10 21-Jul-10 22-Jul-10 23-Jul-10 26-Jul-10 27-Jul-10 28-Jul-10 29-Jul-10 30-Jul-10 02-Aug-10 03-Aug-10 04-Aug-10 05-Aug-10 06-Aug-10 09-Aug-10
1.1628 -1.4368 -0.2915 0.0000 -0.5848 -0.2941 1.7699 -2.0290 -0.2959 1.7804 0.0000 -2.9155 1.2012 0.2967 -0.2959 0.2967 -1.4793 -1.2012 10.9422 -4.9315 0.8646 -1.1429 -0.5780 -0.2907 2.9155 -0.5666
2.3792 -1.5977 0.4428 -1.2491 0.9673 0.0737 -0.5891 -1.6296 -1.1295 1.6756 0.0749 -1.7216 0.6093 2.2710 1.1103 -0.4392 -0.0735 0.3679 0.5865 -3.3528 1.8100 -0.6667 -0.3729 -0.2994 1.4264 2.1466
4.0280 0.2525 -1.3434 -0.5106 -1.1548 2.5097 -1.2241 -0.5556 0.9884 -0.8511 -0.2575 -0.7315 -0.2601 3.1291 -2.3599 -0.2590 -0.0865 -1.0394 -0.8315 1.3239 1.3937 -0.8162 -1.2993 1.0092 4.0400 -1.0438
4.2424 -1.3081 -0.2946 -0.7386 0.2976 0.2967 -0.4438 -2.9718 -1.0720 0.4644 -0.3082 -1.7002 -0.1572 1.1024 -1.4019 -0.7899 -0.4777 -1.1200 -0.3236 -0.9740 1.8033 -0.9662 -0.9756 -0.8210 1.6556 1.9544

76
10-Aug-10 11-Aug-10 12-Aug-10 13-Aug-10 16-Aug-10 17-Aug-10 18-Aug-10 19-Aug-10 20-Aug-10 23-Aug-10 24-Aug-10 25-Aug-10 26-Aug-10 27-Aug-10 30-Aug-10 31-Aug-10 01-Sep-10 02-Sep-10 03-Sep-10 06-Sep-10 07-Sep-10 08-Sep-10 09-Sep-10 13-Sep-10 14-Sep-10 15-Sep-10
0.5698 -0.2833 -0.8523 -0.8596 -1.1561 0.0000 2.6316 -1.4245 -0.2890 0.8696 -1.4368 -4.0816 -1.2158 -0.3077 -0.3086 0.0000 1.5480 0.3049 1.2158 1.5015 -0.8876 1.1940 1.1799 -0.5831 -1.4663 -0.5952
-2.7536 0.0745 -0.6701 0.2249 2.2438 -0.8778 6.9373 -0.4141 -1.2474 1.4737 -1.3831 -3.5063 -1.7442 -1.1834 -0.7485 0.2262 3.4612 2.1091 5.1282 -1.4228 0.0687 -0.4121 4.6897 -0.9881 -1.9960 -0.2037
-1.1814 0.4697 -1.1050 2.1917 0.1262 -0.0840 9.6259 -1.8021 -1.8743 0.0398 -0.6364 1.0408 -2.5753 -1.7080 0.3310 -0.5773 1.5346 -1.9199 1.2911 -0.2056 1.4833 0.0812 3.5294 -0.3527 -1.4550 -1.0375
-2.0767 0.1631 -0.6515 -0.9836 2.1523 -0.9724 4.9100 -0.4680 -0.7837 0.4739 -0.1572 -2.3622 -1.7742 -1.8062 -2.0067 0.0000 1.8771 2.0101 4.1051 -0.3155 -0.6329 0.4777 1.9017 0.0000 -2.0218 -0.6349

77
16-Sep-10 17-Sep-10 20-Sep-10 21-Sep-10 22-Sep-10 23-Sep-10 24-Sep-10 27-Sep-10 28-Sep-10 29-Sep-10 30-Sep-10 01-Oct-10 04-Oct-10 05-Oct-10 06-Oct-10 07-Oct-10 08-Oct-10 11-Oct-10 12-Oct-10 13-Oct-10 14-Oct-10 15-Oct-10 18-Oct-10 19-Oct-10 20-Oct-10 21-Oct-10
-0.5988 1.2048 1.7857 -3.5088 10.9091 -5.4645 0.2890 0.2882 -0.8621 -1.4493 -0.8824 0.5935 -0.2950 0.2959 4.7198 -1.6901 -1.7192 8.4548 -0.2688 9.4340 0.4926 -3.9216 -2.2959 0.0000 -2.3499 0.5348
-1.7687 0.2770 1.7265 -1.9009 -0.2076 -1.5950 1.1980 -1.4624 0.7774 -1.8934 -1.5011 3.0479 1.1268 1.4624 3.8435 -1.9167 -0.1348 10.6613 -0.7927 -0.4302 11.2963 2.9950 -7.4313 -1.5707 0.0591 2.0083
0.0806 1.0878 -0.7971 -2.6115 -1.8564 0.3363 0.3770 -1.0434 2.3619 -0.5356 -0.2900 1.1633 -0.7803 -0.8692 4.2589 -1.9223 -2.4091 2.8452 0.7323 -0.4443 3.9757 0.3902 0.5441 -0.7344 -1.6745 0.1980
-1.5974 1.6234 2.0767 -2.5039 0.3210 -1.6000 1.4634 -1.4423 -0.3252 -2.2838 -0.6678 3.1933 0.3257 0.0000 8.9286 -2.8316 -3.3742 8.0952 -0.2937 1.9146 4.1908 -0.6935 -4.3296 -1.0219 -0.7375 1.6345

78
22-Oct-10 25-Oct-10 26-Oct-10 27-Oct-10 28-Oct-10 29-Oct-10 01-Nov-10 02-Nov-10 03-Nov-10 04-Nov-10 05-Nov-10 08-Nov-10 09-Nov-10 10-Nov-10 11-Nov-10 12-Nov-10 15-Nov-10 16-Nov-10 18-Nov-10 19-Nov-10 22-Nov-10 23-Nov-10 24-Nov-10 25-Nov-10 26-Nov-10 29-Nov-10
2.9255 16.7959 -7.9646 0.2404 -4.5564 -0.5025 6.5657 3.5545 -0.2288 2.0642 2.6966 0.4376 -0.6536 2.4123 -2.3555 -2.6316 -4.2793 -0.7059 3.0806 1.6092 -1.8100 -3.9171 -1.4388 8.5158 -0.8969 -1.3575
0.6948 0.1725 -0.6315 -5.1415 0.4872 -2.9697 2.4984 5.1188 7.1884 1.5143 -0.2131 5.6060 4.8028 -4.1486 -1.1072 -1.8321 -4.0435 -2.4851 1.6620 -2.1253 -4.8441 3.7449 0.5076 -1.7957 -2.5714 9.6774
-0.2767 3.5672 1.6839 -3.0862 0.9709 -4.2308 2.8514 -1.1714 4.3461 -0.2272 1.9734 0.9676 5.4552 -1.2233 1.1323 -4.0238 -1.4947 -4.7002 -0.2718 -2.4143 -1.7957 0.8127 -0.2015 -0.3231 -3.6062 4.4977
1.1696 -1.0116 -0.7299 -2.0588 1.0511 0.4458 0.8876 4.5455 5.0491 2.4032 -0.7823 3.5480 3.6802 0.9792 -0.8485 -4.0342 -7.0064 -3.1507 2.1216 -2.9086 -4.4223 1.7910 -2.6393 -4.8193 -3.1646 6.5359

79
30-Nov-10 01-Dec-10 02-Dec-10 03-Dec-10 06-Dec-10 07-Dec-10 08-Dec-10 09-Dec-10 10-Dec-10 13-Dec-10 14-Dec-10 15-Dec-10 16-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 31-Dec-10
2.5229 1.7897 0.2198 -3.2895 0.2268 0.2262 4.0632 0.0000 -4.5553 2.0455 0.2227 9.3333 8.7398 -3.1776 0.3861 6.1538 7.7899 8.0672 16.7963 2.3968 2.7308 -1.1392 2.5608
-2.5134 3.6204 -2.4352 -2.0619 -3.7119 -3.3947 -5.3008 -7.1069 7.0413 0.8855 2.8213 -0.8537 1.9065 1.2070 2.0274 -1.1689 -1.1236 2.1531 -0.2927 -0.4110 -0.3538 3.9053 2.7904
-1.0459 3.0081 2.0521 -3.2096 0.7191 -2.8163 -2.8571 -6.4286 2.8289 2.5764 1.1920 -2.0194 0.3864 1.7536 -0.7146 0.9314 1.5940 -0.0826 -0.6198 0.6237 -0.4132 1.0788 1.2726
-0.7669 3.7094 -2.0864 -1.9787 -1.7081 -1.4218 -3.8462 -7.1667 3.7702 1.7301 2.3810 -2.4917 2.5554 0.8306 0.4942 0.4918 0.9788 4.3619 -1.2384 0.6270 2.0249 3.0534 1.4815

80
Daily return of the companies selected as a sample for the year 2010. Daily return is calculated with the help of following formula: (FMCG sector) Daily Return = Todays close Previous Close * 100 Previous Close
Date 04-Jan-10 05-Jan-10 06-Jan-10 07-Jan-10 08-Jan-10 11-Jan-10 12-Jan-10 13-Jan-10 14-Jan-10 15-Jan-10 18-Jan-10 19-Jan-10 20-Jan-10 21-Jan-10 22-Jan-10 25-Jan-10 27-Jan-10 28-Jan-10 29-Jan-10 01-Feb-10 02-Feb-10 03-Feb-10 04-Feb-10 05-Feb-10 06-Feb-10 08-Feb-10 09-Feb-10 ITC 0.9856 0.2342 -0.3116 0.2149 0.0390 -2.5526 -0.4399 -0.3213 1.8537 -0.8704 -0.2594 -1.1204 -1.0522 1.8814 2.4087 0.3136 -0.6448 -1.6126 -1.4591 -0.8519 3.3552 0.2969 -1.9736 -0.1208 -1.0885 -0.5910 HUL -0.3211 0.5685 -0.2073 0.4343 0.0564 -1.4844 0.1335 -2.4571 0.1367 0.3510 -0.7190 0.9199 -0.4073 0.4674 2.3260 -1.7428 -1.5616 -5.0920 -2.0842 -0.3161 -0.0211 -2.2838 -0.8656 0.8513 2.3810 -1.6490 NESTLE -0.0479 -0.0480 -0.0480 -0.1920 0.1724 0.1561 -0.5394 3.1675 -2.1299 0.9011 0.7866 -0.5321 -0.6411 0.1108 -0.2669 1.7702 0.7772 -2.0817 -0.0316 1.1018 0.1758 0.1462 -0.7495 0.6787 3.0821 5.5604 UNITED SPIRITS 1.2786 3.7388 -1.4806 -1.2316 0.9686 -0.0404 -2.5152 -0.1358 -3.8640 0.3811 0.0157 -0.9392 -3.5515 5.5460 -3.0154 -3.4052 4.7473 -2.3214 1.6438 -0.1753 2.6376 -0.1050 -3.3431 1.9609 0.6871 0.3530

81
10-Feb-10 11-Feb-10 15-Feb-10 16-Feb-10 17-Feb-10 18-Feb-10 19-Feb-10 22-Feb-10 23-Feb-10 24-Feb-10 25-Feb-10 26-Feb-10 02-Mar-10 03-Mar-10 04-Mar-10 05-Mar-10 08-Mar-10 09-Mar-10 10-Mar-10 11-Mar-10 12-Mar-10 15-Mar-10 16-Mar-10 17-Mar-10 18-Mar-10 19-Mar-10 22-Mar-10 23-Mar-10 25-Mar-10 26-Mar-10 29-Mar-10 30-Mar-10 31-Mar-10 01-Apr-10
0.0000 1.3325 0.8901 0.3208 0.6396 -1.3903 0.1007 -0.3622 0.6664 -0.6419 -0.0202 -6.1995 4.1765 0.7233 0.9643 -0.5283 2.6558 -0.0796 1.2746 0.5506 1.0952 0.3482 0.1735 1.1740 -0.6087 0.0191 0.1148 -0.2485 1.4562 -0.1322 1.8154 -0.1300 -2.1573 0.3611
-1.0748 1.4342 -1.5638 3.2209 1.4337 0.8106 -0.6186 2.1369 -0.5078 -1.1229 -2.8701 0.4252 -0.7409 1.9834 1.8193 -0.1848 -1.7490 -1.1309 1.5675 -4.5673 -4.1084 2.8031 0.5099 -1.2351 0.4243 1.8234 -0.3057 0.1095 1.5317 2.8017 0.5031 0.8970 -0.9510 -3.8197
-1.5183 -0.4709 -0.6576 -0.6399 -0.4849 -1.3854 -0.4281 -2.0927 -1.2650 0.8816 -0.5865 2.6293 -0.0552 0.1409 0.1845 2.5494 0.9181 0.7062 -0.1912 -0.2628 -0.6331 1.0809 -2.6395 0.2320 -0.3920 -0.8133 -0.4402 0.7268 -0.2072 1.4745 0.9489 -1.5574 -0.0019 1.4566
-0.1172 1.8625 -1.2138 1.7381 2.7137 -0.6437 0.2247 -0.5792 -1.5936 2.1809 -2.1044 3.4097 2.2708 4.3902 0.0899 2.9164 -0.8125 -0.5788 -0.2281 -2.1942 -0.9595 0.4615 -0.3927 -3.3128 -2.2939 2.3739 -2.7411 1.4971 -2.4117 1.4246 0.1751 -0.2120 -1.5020 1.0443

82
05-Apr-10 06-Apr-10 07-Apr-10 08-Apr-10 09-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 03-May-10 04-May-10 05-May-10 06-May-10 07-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10
0.3030 0.5476 1.2019 -0.6309 0.5602 0.7985 -1.0317 -2.1780 2.4167 -1.5793 -0.6230 -0.2850 0.6858 1.0218 0.1686 0.8040 0.1484 -1.0372 -0.4866 -0.3385 -1.0002 -0.0572 -1.1825 0.0386 1.0226 -0.8594 2.1191 0.5471 0.6191 -0.7459 0.9393 -3.5176 1.2346 3.3918
-0.5642 0.3492 -2.1314 -1.0222 -0.6062 1.4231 -0.4232 0.8499 0.6875 -0.9912 1.3571 2.2169 1.9326 0.7373 1.0038 0.4762 -0.2885 -2.6245 1.7827 -2.5229 -0.5989 -1.5494 1.4863 1.0554 1.0017 -0.0422 0.6966 -0.1258 -1.8052 2.6293 0.0000 -2.7911 1.5427 -2.6377
0.3543 1.5097 -0.3261 -1.1850 -0.6474 -0.2258 0.7310 1.2230 -0.0218 0.5023 0.4455 1.4333 2.2894 -5.3972 1.2307 1.3808 0.2112 -0.3536 -0.9517 -0.4506 0.0254 0.1072 -0.0036 -0.8224 2.3064 -1.6801 1.5595 0.0000 0.5788 1.6515 3.3527 -0.1000 -1.7585 -3.6543
3.0482 -3.3360 0.3609 0.2135 1.0354 -1.2579 -0.2810 -4.2908 -3.2034 -1.4114 2.6328 1.2986 -2.0773 1.0748 -2.0389 -0.7631 -0.7608 0.3854 3.8184 2.6799 -3.3961 1.8800 -2.0814 -2.2703 1.7885 -0.6786 1.3705 -1.3119 -0.2805 0.5300 -1.6342 -0.9729 -0.7951 -2.5178

83
24-May-10 25-May-10 26-May-10 27-May-10 28-May-10 31-May-10 01-Jun-10 02-Jun-10 03-Jun-10 04-Jun-10 07-Jun-10 08-Jun-10 09-Jun-10 10-Jun-10 11-Jun-10 14-Jun-10 15-Jun-10 16-Jun-10 17-Jun-10 18-Jun-10 21-Jun-10 22-Jun-10 23-Jun-10 24-Jun-10 25-Jun-10 28-Jun-10 29-Jun-10 30-Jun-10 01-Jul-10 02-Jul-10 05-Jul-10 06-Jul-10 07-Jul-10 08-Jul-10
-1.1979 -2.8166 3.3013 2.5269 2.6459 0.0000 -0.0706 -0.6007 1.4931 1.8739 -1.0830 0.6952 -4.1767 0.8826 0.5356 1.6161 1.9574 -0.2743 1.0313 0.3403 1.4242 0.9027 0.3479 0.9576 -1.4064 -1.2606 -0.4368 3.0707 -0.8021 -0.1485 -0.1322 0.2482 -0.2971 0.3808
0.4335 -0.4963 0.4337 0.6262 1.4378 0.3596 -1.4334 1.6895 3.9117 1.8822 -0.2582 0.1394 -0.7359 0.9818 0.2976 1.0682 1.8399 -1.6337 -1.1333 1.8775 0.3880 1.1594 1.7001 1.7656 -1.7165 0.1878 -1.5370 1.8656 1.8501 -1.5046 -0.8383 0.4509 0.0935 -0.4297
4.1283 -4.3435 1.1829 0.9395 0.8567 0.6485 -0.8266 -0.6234 -1.0749 0.1140 -0.4804 0.8742 1.4391 1.0570 0.1936 0.2381 0.1308 0.6963 -0.4234 1.2225 1.5211 -2.8347 -0.4344 1.3866 -1.0836 -0.0052 -0.3285 -0.6315 2.2000 1.2097 3.5689 0.2026 -1.8473 0.4532
0.8222 -6.3063 4.8988 1.1121 3.2567 1.8599 -1.9199 1.3036 0.2426 1.4478 -1.2007 0.6465 -0.3700 -1.0120 0.6885 0.6264 2.2379 -0.1632 -1.3195 2.0481 0.3048 -0.7656 1.0141 1.7835 0.4100 1.0247 -0.8694 0.8001 -1.5913 -1.3068 0.3300 -0.1684 0.2668 0.8255

84
09-Jul-10 12-Jul-10 13-Jul-10 14-Jul-10 15-Jul-10 16-Jul-10 19-Jul-10 20-Jul-10 21-Jul-10 22-Jul-10 23-Jul-10 26-Jul-10 27-Jul-10 28-Jul-10 29-Jul-10 30-Jul-10 02-Aug-10 03-Aug-10 04-Aug-10 05-Aug-10 06-Aug-10 09-Aug-10 10-Aug-10 11-Aug-10 12-Aug-10 13-Aug-10 16-Aug-10 17-Aug-10 18-Aug-10 19-Aug-10 20-Aug-10 23-Aug-10 24-Aug-10 25-Aug-10
-0.9236 -0.1332 -0.2834 -0.2006 0.5360 -0.5831 -2.3462 0.0343 0.3088 1.8300 1.3268 0.3481 0.5121 1.0189 0.8947 -0.4353 1.3117 -50.6394 0.5829 0.3220 1.8935 0.1260 -1.0695 -1.4626 -1.2907 2.1576 1.2800 0.8215 1.8490 1.7231 -1.5729 -1.9668 0.2194 0.4066
-1.5200 -0.0953 -0.8964 -0.8468 2.2321 1.0632 -0.5824 -0.7370 -0.3427 0.2101 -0.1334 0.0000 -0.5917 -3.0914 1.6445 -1.9688 0.7954 -0.0395 1.3025 -0.5260 -0.0979 0.3921 1.6208 0.4035 1.8182 -0.0752 1.5425 -1.5747 1.3552 1.7827 -1.8792 -0.0186 0.2976 -0.6119
-2.0901 0.3653 -0.3289 0.1508 -0.4114 1.5333 -1.0172 0.2540 -1.6218 -0.0407 0.0966 1.8576 -0.4971 -1.0542 0.1486 1.8597 0.0712 -1.9800 -1.8849 -3.7426 -1.0149 0.7545 0.9997 0.3335 0.0955 -1.0739 -1.3016 -1.3314 0.9607 2.2936 2.2528 1.0538 1.2628 0.6753
0.2367 1.2426 -0.1338 0.6930 2.0799 1.9556 2.9009 -0.7705 -1.0019 -0.1337 -0.8396 0.6460 -0.1160 2.7229 1.9474 -3.9695 1.5560 1.7916 0.6007 1.0414 -1.8552 2.2263 -1.0239 -1.2939 -0.8938 0.2546 -0.9278 -0.2136 0.4782 1.9533 -0.3344 -0.9646 -1.4363 -1.5110

85
26-Aug-10 27-Aug-10 30-Aug-10 31-Aug-10 01-Sep-10 02-Sep-10 03-Sep-10 06-Sep-10 07-Sep-10 08-Sep-10 09-Sep-10 13-Sep-10 14-Sep-10 15-Sep-10 16-Sep-10 17-Sep-10 20-Sep-10 21-Sep-10 22-Sep-10 23-Sep-10 24-Sep-10 27-Sep-10 28-Sep-10 29-Sep-10 30-Sep-10 01-Oct-10 04-Oct-10 05-Oct-10 06-Oct-10 07-Oct-10 08-Oct-10 11-Oct-10 12-Oct-10 13-Oct-10
2.1184 -1.6473 -1.1787 2.4168 0.0000 1.4097 -0.8764 1.0976 0.2413 -1.1432 -1.1869 0.5236 1.2255 1.4831 -0.1491 0.5675 4.9302 -2.2644 1.1874 1.0303 1.5581 -0.4742 0.0000 -2.6906 2.7074 0.1963 -1.9032 -0.8274 -0.5178 -0.5784 0.3200 0.2899 -1.1564 2.4276
-0.8769 -0.6399 -0.1137 0.3224 0.7750 1.2568 1.1115 -0.4580 -0.3681 1.3301 1.7502 0.0358 -0.3582 -0.0360 0.0180 1.3305 4.0454 0.5969 1.0341 1.7785 3.8411 -1.9368 -0.8580 -0.0653 0.9967 0.2103 -0.3713 -1.4746 -0.9375 -1.5939 -0.1856 -0.3212 -1.0344 3.9582
3.7294 -0.5166 1.4730 -0.9012 -0.3151 1.9696 1.5561 0.9235 -0.1029 0.1482 -1.2153 0.3990 0.6661 -1.4670 1.0723 2.2738 0.1931 1.1913 -0.4095 -1.1335 1.7068 0.7470 0.3310 -0.2463 1.2377 -0.6401 -1.4462 -1.2817 -2.1976 0.3831 1.2929 -0.9750 2.4661 0.1743
1.3051 -0.8074 0.9804 2.6404 8.3982 -2.2251 -0.0296 0.6523 0.0393 -0.5496 2.2338 4.5180 -1.5209 0.6753 -0.5093 1.4982 0.0584 -1.5121 -2.0971 0.4654 1.6212 -2.1574 1.5572 0.5876 -1.7086 1.6493 4.4988 -2.6148 0.7066 -2.5350 -1.3208 0.4821 -3.2102 1.8850

86
14-Oct-10 15-Oct-10 18-Oct-10 19-Oct-10 20-Oct-10 21-Oct-10 22-Oct-10 25-Oct-10 26-Oct-10 27-Oct-10 28-Oct-10 29-Oct-10 01-Nov-10 02-Nov-10 03-Nov-10 04-Nov-10 05-Nov-10 08-Nov-10 09-Nov-10 10-Nov-10 11-Nov-10 12-Nov-10 15-Nov-10 16-Nov-10 18-Nov-10 19-Nov-10 22-Nov-10 23-Nov-10 24-Nov-10 25-Nov-10 26-Nov-10 29-Nov-10 30-Nov-10 01-Dec-10
-0.0286 -1.7709 -0.2326 -0.6121 -1.4663 3.7798 -1.8067 -1.1974 1.5371 -2.2707 -0.4766 2.4843 0.3797 0.9019 1.2399 0.8260 0.0847 -0.8467 1.2240 -0.4499 -0.9322 -0.8554 0.7478 -2.9689 1.1768 -0.5816 2.8956 -1.9329 0.6957 -2.3028 -1.2080 0.5667 1.9573 -0.2909
-1.3845 -0.1839 -0.5526 0.0168 -1.2121 4.4479 -1.6969 1.6763 -2.6281 -1.7603 -0.5802 1.1672 -0.0509 0.0170 0.4752 1.0811 1.2199 1.2547 4.0274 -1.3323 -1.7633 -2.3933 0.6296 -1.7287 0.3686 -0.1836 0.2174 0.2169 -0.1665 -0.8672 -1.3795 1.6035 0.1511 -0.2179
-1.3117 -1.9455 0.3143 3.3198 -0.0739 2.8124 -0.0411 1.1414 0.1917 -1.4684 1.8978 0.6150 1.8927 0.0620 1.6143 1.0887 0.3220 1.9394 7.2441 -3.5916 -1.5135 0.7881 1.8655 -0.1282 -3.4466 -3.6534 2.2911 -0.4571 2.7595 -0.8345 -5.3082 0.1334 1.6572 -1.5805
-0.4097 -1.8063 0.6383 2.2832 -0.9190 2.0957 -2.1784 -0.1896 3.6317 -1.1340 -6.5393 0.5413 0.1037 -0.0702 -0.2908 0.9757 0.4748 -0.4858 -0.6841 -1.4679 -2.7114 -2.3266 -0.0464 -0.0536 -0.0965 -0.6799 0.4323 0.3695 -0.3788 -0.0251 -5.3576 1.0579 4.2847 1.5255

87
02-Dec-10 03-Dec-10 06-Dec-10 07-Dec-10 08-Dec-10 09-Dec-10 10-Dec-10 13-Dec-10 14-Dec-10 15-Dec-10 16-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 31-Dec-10
-0.2917 0.2341 -1.3135 -0.5028 -0.8621 0.3298 1.7932 -1.8497 0.7478 -0.8314 0.6287 -0.6546 0.1198 0.1496 -0.2987 1.7975 -0.0883 0.8542 1.7523 0.2009 0.0573
-0.2184 0.7745 0.3509 -1.5152 0.2198 -2.4629 2.3867 1.6892 -0.9136 0.1676 -1.5900 0.3912 -0.4743 -0.0851 -0.8177 1.3397 0.4237 -0.6245 3.4986 1.5097 1.1639
2.1903 0.6829 2.0321 -0.1615 0.0495 -0.6201 1.8153 2.6401 -2.7241 -4.3665 -1.3348 0.0350 1.1996 1.6064 0.3039 -0.0938 0.2734 -0.6090 -0.0068 2.1249 1.9297
0.3473 -0.8723 2.0413 1.7491 -1.7877 -4.6361 -0.1722 0.9872 2.8708 0.4239 1.3473 1.8118 0.3170 -0.3025 -0.9408 0.4405 -1.9699 2.5861 1.0016 -1.4976 0.2431

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Portfolio Construction in FMCG and Fertilizer Sector.

Introduction to Indian Capital Market.

Govt. Securities Market.

Call Money Market.

Commercial Bill Market.

Treasury Bill Market.

Short Term Loan Market .

Money market is created by a financial relationship between suppliers and

Capital Market is a financial relationship created by number of institutions and

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

The capital market comprises of:

1. Industrial securities market.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Long Term Loans Market.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Meaning of Portfolio Management.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Process of Portfolio Management.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

RELIGARE ENTERPRISES LTD

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Company Mainly Offering Services.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Tata Global Beverages. Britannia Procter and Gamble Marico

6.95 40.07 3.97

1.45 1.33 0.53

33.17 164.70 9.31

49.50 42.30 31.36

4109.11 5502.09 7648.87

and fertilizers Natiopnal fertilizers 3.36 1 32.25 31.25 5151.07

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

Data analysis tools:

Arithmetic Mean: A mathematical representation of the values of a series of

Standard deviation: It is widely used measurement of variability or diversity

Correlation: A correlation is a single number that describes the degree of

B.R.C.M. College of Business Administration.

Portfolio Construction in FMCG and Fertilizer Sector.

r = n(xy) (x.y) (nx2-(x)2). (ny2-(y)2

Regression: A statistical measure that attempts to determine the strength of

Portfolio Construction tools: Markowitz model: