Mrunal Joshi

A Study of Risk and Return of Different Capitalisation Stocks in Different Phases of Stock Market During 2007-2009 in India

Stock Market is ever green field for Investment and good choice of investment provides very lucrative scope. But it is very difficult to select companies for investment as there are number of companies listed in different stock exchanges. In this paper I have tried to catagorise different stocks on the basis of Market Capitalisation and study them on the basis of performance of different Indices of Bombay Stock Exchange related to different Capitalisation Stocks i.e. Sensex for Large Cap Stocks, Mid Cap Index for Mid Cap Stocks and Small Cap Index for Small Cap Stocks. For my study I have used daily value of selected Indices from January 2007 to December 2009. In this study I have found that there is no major difference in risk and return of different capitalisation stocks, but there is significant difference in risk and return of same stocks in different phases of stock market i.e. Bearish Trend, Consolidation Period and Bullish Trend.

A Study of Perception of Retail Investors’ of Surat City About Factors Affecting Primary Market Mechanism in India

The primary market is that part of the capital markets that deals with the issue of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, primary market which has become an important gateway for the retail investors to make their investment, is also influenced by various factors. Hence, this study has made an attempt to find out the perception of retail investors about factors influencing Indian primary. This study is based on primary data collected through a well designed structured questionnaire from 175 retail investors from Surat City. In this study it has been observed that the most important factors while investing in Primary Market according to Investors are Company’s Goodwill, Current Financial Position of company, Corporate Profile, Government holding in company and Promoters stake in the company. While the least important factors are Size of the IPO Issued, Disclosure by market participants and Minimum Investment amount required. The study reveals that retail investor’s opinion is similar on majority aspects relevant to IPOs. Saving ratio of investors is only demographic factor affecting perception of retail investors about various factors affecting primary market. SEBI is already alert about few issues immerging in primary market though few problems related to IPOs were unfolded during the study. Major problems out of the mentioned are Refund related Problems, Delay in allotment of shares and Lack of Transparency.

A Study of Risk and Return of Different Sectors during Different Phases of Stock Market in India

Stock market is ever green field for Investment and provides one of the lucrative alternatives of investment. But it is very difficult to select companies for investment as there are number of companies listed in different stock exchanges. In this paper attempt has been made to catagorise different stocks on the basis of different sectors and study those on the basis of performance of different Indices of Bombay stock Exchange related to stocks of different sectors i.e. METAL, BSEHC, BSECD, OILGAS, BSEIT, BSEFMCG, AUTO, BANKEX, POWER, REALITY. In this study daily value of selected Indices from January 2007 to December 2009 has been calculated and used. In this study it has been found that there is no major difference in risk and return of different sectors, but there is significant difference in risk and return of same sector in different phases of stock market i.e. bearish trend, consolidation Period and bullish trend.

Risk-Return Analysis of Portfolio Constructed Out of Selected Commodities and Securities

In recent time people have number of investment avenues available for investment. But the important decision is to select optimum combination out of them to generate maximum return with minimizing risk.In this paper Markowitz Model is used to construct a portfolio which can generate optimum return with minimum level of risk. This model is applied on selected scripts and commodities to construct portfolios. In securities BHEL, Reliance and Satyam Computers were selected; whereas from commodities Gold, Silver and Zinc have been selected.The result of analysis tells following risk and return position for specific period of time i.e. 31st May 2007 to 24th July 2007 for different scripts and commodities.Script/Commodity Mean (%) R(Expected Return) Standard Deviationσ (Risk) RankReliance 0.08 1.06 3Satyam -0.04 1.73 6BHEL 0.73 2.21 1Zinc 0.08 1.79 4Gold 0.07 0.61 2Silver 0.01 1.16 5As BHEL from selected script and Gold from commodities appears good on the basis of their risk-return relationship, these two instruments were selected for portfolio construction. Following probable alternatives has been derived on the basis of their risk return relationships for suggestion in portfolio preparation out of selected avenues.Portfolio Proportion of Gold Proportion of BHEL Return of Portfolio Risk of PortfolioA 0.1 0.9 0.14 0.64B 0.3 0.7 0.27 0.87C 0.5 0.5 0.40 1.21D 0.7 0.3 0.53 1.60E 0.9 0.1 0.66 2.00(Note : Return is calculated for specific period and not annual return.)From above table one can select any of the portfolios according to his risk averseness or expected return.