Stock Returns of Sensex 20

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Project Carried Out by me i.e.,
Mahesh M. Agasimani

The project contains the study of "Stock Returns of Sensex 20" Companies for the FY 2011-12.

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Stock Returns of Sensex 20

  1. 1. Stock Returns of Sensex 20KARNATAK UNIVERSITY DHARWAD A PROJECT REPORT ON “STOCK RETURNS OF SENSEX 20” SUBMITTED TO KARNATAK UNIVERSITY IN PARTIAL FULFILMENT FOR REQUIREMENT OF THE DEGREE OF MASTER OF COMMERCESubmitted by Under the Guidance ofMahesh M. Agasimani DR. S. G. HundekarReg No: 10c01171Department of Commerce , Karnatak University Dharwad Page 1
  2. 2. Stock Returns of Sensex 20 KARNATAK UNIVERSITY DHARWAD CertificateReg.No: 10c01171 Date: 09-07-2012This is to certify that this project entitled “Stock Returns of Sensex 20"Submitted by Mr Mahesh M. Agasimani for the partial fulfillment ofthe Degree of Master of Commerce is based on the result of experimentcarried out by him at P.G.Department of studies in Commerce,Karnatak University, Dharwad, for the academic year 2011-2012.GUIDE ChairmanDr. S. G. Hundekar Dr. S. S. HugarDepartment of Commerce , Karnatak University Dharwad Page 2
  3. 3. Stock Returns of Sensex 20 CONTENTS SL.No TITLES PAGE NO Chapter-1 1) EXECUTIVE SUMMARY 2) OBJECTIVES OF THE STUDY 01 3) SCOPE OF THE STUDY 1-4 4) METHODOLOGY 5) LIMITATIONS OF THE STUDY 02 Chapter -2 5-26 SENSEX AND THE COMPANIES Chapter-3 03 27-35 CONCEPTUAL FRAMEWORK OF STOCK RETURNS 04 Chapter-4 36-61 ANALYSIS AND INTERPREATION Chapter-5 05 62-64 FINDINGS, SUGGESTIONS AND CONCLUSION 06 BIBILOGRAPHY 65 AbbreviationDepartment of Commerce , Karnatak University Dharwad Page 3
  4. 4. Stock Returns of Sensex 20 Particulars Abbreviation Airtel AIR Bajaj BJJ Cipla CPL DLF DLF Housing Development Financial HDFC Corp HindalCo HIND Hindustan Unilever Limited HUL Industrial Development Bank of IDBI India Infosys INFY Indian Tobacco Company ITC Jaiprakash Associates JAP Jindal Steel Works JSW Larsen and Toubro L&T Mahindra and Mahindra M&M Maruti Suzuki MSZ National Thermal Power Corp NTPC Oil and Natural Gas Company ONGC Reliance Industries RIL State Bank of India SBI Tata Motors TM Sensex SXDepartment of Commerce , Karnatak University Dharwad Page 4
  5. 5. Stock Returns of Sensex 20 Chapter 1 INTRODUCTIONDepartment of Commerce , Karnatak University Dharwad Page 5
  6. 6. Stock Returns of Sensex 201.1 Executive Summary S tock Returns can provide insight into the structure of the financial market. It is generally believed that the relationship between stock return and Market return can provide an insight into the structure of capital market. The main objectives of study to ascertain the Stock Return changes in the Bombay Stock Exchange. Second the correlation between Stock Returns and Market Returns. Pricing of stock is an issue heavily discussed in the areas of finance, economics, and accounting. Generally it is known that pricing react to the arrival of new information. Investors in the stock markets frequently revise their expected prices of stocks depending on the flow of information relating to the returns. The current study is on Stock Returns of Sensex 20 Companies and Market Returns, calculated for Weekly, Monthly, Quarterly, Half Yearly, and Annual Period from closing prices of 20 companies in the Bombay Stock Exchange.1.2 Objective of the Study The objectives of the study is  To know the stock performance of Sensex 20 Companies.  To determine the Volatility of Sensex 20 Companies.  To know the market performance in the FY 2011-12.  To know the Excess Stock returns.1.3. Need for Study There exists a considerable amount of evidence both for and against various level of efficiency for developed capital market. However, the capital market of the developing world such as that of India has been less subjected to efficiency Work. Therefore, further investigations on individual stock return data would provide more conclusive evidence. The knowledge of stock return in stock market can prove useful for investors.Department of Commerce , Karnatak University Dharwad Page 6
  7. 7. Stock Returns of Sensex 20 By properly timing their buy and sell decisions, they can enhance their adjusted profit, altering the time of routinely scheduled transaction in the light of trading volume changes can enhancing one‘s return on investment. The proposed study provides a useful insight into the behaviour of return changes in the Indian capital market.1.3 Scope of the study The Scope of the study is exclusively conducted for Sensex 20 Companies. The data sets include the opening and closing prices of the BSE Sensex 20 companies’ taken after adjusting to the dividends. The returns are calculated for a period from April 2011 to March 2012 to maintain homogeneity in the data.1.4 Methodology The project is an analytical work, where in the work, has to use the available facts as information and analyze these to make a critical evaluation of material. The Information furnished in this report has been calculated from secondary Data only. This study comprises a period of a year starting from April -1-2011 to March- 31-2011 i.e., for financial year 2011-2012. The units of analysis include 20 companies at the end of March 2012 that are listed on Bombay Stock Exchange. The filtering process of companies includes 3 criteria. First, the company must be listed on the Bombay Stock Exchange before 1 April 2011. Second, the stocks of companies must not be suspended for more than 12 months at any time Period. Third, the stocks of companies must not be delisted during the period of study. Therefore, this study employs a data set of 20 Companies that are selected based on five criteria and also BSE Sensex.Department of Commerce , Karnatak University Dharwad Page 7
  8. 8. Stock Returns of Sensex 20 Secondary Data The Secondary data is obtained from internet and respective companies’ website. There are four approaches of calculating the stock returns viz:- i. Open to Open method ii. Open to Close Method iii. Close to Close Method iv. Close to Open Method This work is based on Close to Close approach of calculating the stock returns.1.5 Limitations of the Study The Good report interprets the result of the study. But every project has its own limitations. The following are some of the limitations of the study. 1. The Study is done on basis of stock prices of the companies. 2. There is no hard and fast rule of calculating the stock returns. 3. The study is limited to only Sensex 20 companies out of all sensex listed companies. 4. The Study is limited to only for the financial year 2011-12, i.e., April 2011 to March 2012. 5. This study doesn’t consider the fundamental factors effecting the stock returns.Department of Commerce , Karnatak University Dharwad Page 8
  9. 9. Stock Returns of Sensex 20 Chapter 2 BSE SENSEX & COMPANIESDepartment of Commerce , Karnatak University Dharwad Page 9
  10. 10. Stock Returns of Sensex 202.1 Introduction to BSE SensexBSE Limited is the oldest stock exchange in Asia What is now popularly known asthe BSE was established as "The Native Share & Stock Brokers Association" in1875.Over the past 135 years, BSE has facilitated the growth of the Indian corporatesector by providing it with an efficient capital raising platform.Today, BSE is the worlds number 1 exchange in the world in terms of the number oflisted companies (over 4900). It is the worlds 5th most active in terms of number oftransactions handled through its electronic trading system. And it is in the top ten ofglobal exchanges in terms of the market capitalization of its listed companiesIn the year of 1986, Bombay Stock Exchange Limited introduced the Stock Index thateventually became the most important stock index of the country.The SENSEX was based on the market-capitalization-weighted method and itincluded the stocks of large and financially well established companies. FromDepartment of Commerce , Karnatak University Dharwad Page 10
  11. 11. Stock Returns of Sensex 20September 2003, the SENSEX is measured on the method of free-float marketcapitalization.Apart from maintaining BSE SENSEX, the Bombay Stock Exchange also maintainssome other stock indices like: SENSEX MIDCAP SMLCAP BSE-100 BSE-200 BSE-500Vision"Emerge as the premier Indian stock exchange by establishing globalbenchmarks"TimingTrading on the BOLT System is conducted from Monday to Friday between 9:15 a.m.and 3:30 p.m. normally. Refer Notice No. 20101014-8 for call auction.HeritageThe first ever stock exchange in Asia (established in 1875) and the first in thecountry to be granted permanent recognition under the Securities ContractRegulation Act, 1956, BSE Limited has had an interesting rise to prominence overthe past 133 yearsWhile BSE Limited is now synonymous with Dalal Street, it was not always so. Thefirst venues of the earliest stock broker meetings in the 1850s were in rather naturalenvirons - under banyan trees - in front of the Town Hall, where Horniman Circle isnow situated.Department of Commerce , Karnatak University Dharwad Page 11
  12. 12. Stock Returns of Sensex 20A decade later, the brokers moved their venue to another set of foliage, this timeunder banyan trees at the junction of Meadows Street and what is now calledMahatma Gandhi Road. As the number of brokers increased, they had to shift fromplace to place, but they always overflowed to the streets.At last, in 1874, the brokers found a permanent place, and one that they could, quiteliterally, call their own. The new place was, aptly, called Dalal Street (BrokersStreet).In 2002, the name "The Stock Exchange, Mumbai" was changed to Bombay StockExchange. Subsequently on August 19, 2005, the exchange turned into a corporateentity from an Association of Persons (AoP) and renamed as Bombay StockExchange Limited.Several FirstsAt par with the international standards, BSE Limited has in fact been a pioneer inseveral areas. It has several firsts to its credit even in an intensely competitiveenvironment.  First in India to introduce Equity Derivatives.  First in India to launch a Free Float Index.  First in India to launch US$ version of BSE Limited.  First in India to launch Exchange Enabled Internet Trading Platform.  First in India to obtain ISO certification for a stock exchange.  BSE On-Line Trading System (BOLT) has been awarded the globally recognised Information Security Management System standard Award.  First to have an exclusive facility for financial training.  First in India in the financial services sector to launch its website in Hindi and Gujarati.  Shifted from Open Outcry to Electronic Trading within just 50 days.  First bell-ringing ceremony in the history of the Indian capital markets (listing ceremony of Bharti Televentures Ltd. on February 18, 2002)Department of Commerce , Karnatak University Dharwad Page 12
  13. 13. Stock Returns of Sensex 202.2 Functions of BSE i. Ideal Meeting Place: It provides an ideal and convenient platform for meeting of both the parties ready to invest and parties with profitable projects. ii. Mobilization of Savings: It provides an ample opportunities for the investors, both individuals and institutions to invest their surplus funds into various financial instruments and thus directs the flow of savings towards the deficit units. iii. Safety to investors: It provides adequate safety to the investors from fraud and manipulation caused due to activities of speculators, member, brokers etc, under the Securities Contract (Regulation) Act 1956. iv. New Securities Market: It helps in the distribution of new securities by providing a good platform for the companies to sell their securities. v. Ready Market: It provides continuous, ready, open, broad market for securities. vi. Liquidity: It is possible for the investors to sell their securities at the best quoted price and thus, convert their investment into cash almost immediately and without much effort. vii. Capital Formation: It provides an arrangement for the collection of savings, in terms of investments in securities and channelizes such savings to the industries as capital. viii. Price Determination: It helps to determine the current market price of the securities by the means of demand and supply, free cash flow etc associated with the securities. ix. Economic Barometer: The price movement of the securities in BSE, determines the level of savings and investment activities in India, thus, indicating the state of health of the economy of the nation. x. Seasoning of Securities: The temporarily holding of stock by players such as underwriters, dealers, brokers and speculators etc is called seasoning of securities. This helps in better absorption of market for new issues.Department of Commerce , Karnatak University Dharwad Page 13
  14. 14. Stock Returns of Sensex 20 xi. Business Information: The business information supplied by the corporate entities is allowed to be exchanged between the investors and the issuers by the BSE. xii. Investor Education: BSE provides the various information to the investors about the principles and advantages of investing in securities, which helps in designing their own portfolio. xiii. Regulation: The requirement of listing on BSE, makes it possible for the BSE to rein in on the corporate enterprises. Settlement Compulsory Rolling Settlement All transactions in all groups of securities in the Equity segment and Fixed Income securities listed on BSE are required to be settled on T+2 basis (w.e.f. from April 1, 2003). The settlement calendar, which indicates the dates of the various settlement related activities, is drawn by BSE in advance and is circulated among the market participants. Under rolling settlements, the trades done on a particular day are settled after a given number of business days. A T+2 settlement cycle means that the final settlement of transactions done on T, i.e., trade day by exchange of monies and securities between the buyers and sellers respectively takes place on second business day (excluding Saturdays, Sundays, bank and Exchange trading holidays) after the trade day. The transactions in securities of companies which have made arrangements for dematerialization of their securities are settled only in demat mode on T+2 on net basis, i.e., buy and sell positions of a member-broker in the same scrip are netted and the net quantity and value is required to be settled. However, transactions in securities of companies, which are in "Z" group or have been placed under "trade-to-trade" by BSE as a surveillance measure ("T" group) , are settled only on a gross basis and the facility of netting of buy and sell transactions in such scrips is not available.Department of Commerce , Karnatak University Dharwad Page 14
  15. 15. Stock Returns of Sensex 20 The transactions in F group securities representing "Fixed Income Securities" and " G" group representing Government Securities for retail investors are also settled at BSE on T+2 basis. In case of Rolling Settlements, pay-in and pay-out of both funds and securities is completed on the same day. Members are required to make payment for securities sold and/ or deliver securities purchased to their clients within one working day (excluding Saturday, Sunday, bank & BSE trading holidays) after the pay-out of the funds and securities for the concerned settlement is completed by BSE. This is the timeframe permitted to the Members to settle their funds/ securities obligations with their clients as per the Byelaws of BSE. The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31, 2007 have been awarded the ICAI awards for excellence in financial reporting. The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technologyDepartment of Commerce , Karnatak University Dharwad Page 15
  16. 16. Stock Returns of Sensex 202.3 Board Composition OtherSl No Name Designation Designation Held Vice chairman 1 Mr. S. RAMADORAI Chairman TCS. Ltd 2 Mr. SUDHAKAR RAO Public Interest Director IAS 3 Dr. SANJIV MISRA Public Interest Director IAS Deputy CEO 4 Mr. ANDREAS PREUSS Shareholder Director Deutsche Borse AG Vice-Chairman & 5 Mr. KEKI M. MISTRY Shareholder Director CEO HDFC Ltd. Designated Dir, Trading Member 6 Mr. UTTAM BAGRI BCB Brokerage Director Private Ltd. Designated Dir, Trading Member Asit C Mehta 7 Ms. DEENA A. MEHTA Director Investment Intermediates Ltd. Designated Dir Trading Member 8 Mr. ANIL M. SHAH Span Caplease Director Private Ltd. Management Team (As of May 2012)Sl. No. Name Designation 1 Mr. ASHISHKUMAR CHAUHAN Interim Chief Executive Officer 2 Mr. BALASUBRAMANIAM V Chief Business Officer 3 Mr. NEHAL VORA Chief Regulatory Officer 4 Mr. NAYAN MEHTA Chief Financial Officer 5 Mr. KERSI TAVADIA Chief Information Officer 6 Mr. VIJAY AGRAWAL Officer on Special Duty 7 Mr. LAKSHMAN GUGULOTHU CEO - SME PlatformDepartment of Commerce , Karnatak University Dharwad Page 16
  17. 17. Stock Returns of Sensex 202.4 About Companies 1. Bharti Airtel Limited  Bharti Airtel Limited is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa.  Established on July 07, 1995, as a Public Limited Company Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the companys product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had over 246 million customers across its operations at the end of February 2012.  The Market Capitalization of the company is Rs 113,223.36 Crores.  CEOs: Mr. Sanjay Kapoor (India & South Asia), Mr. Manoj Kohli (International) Chairman: Mr. Sunil Bharti Mittal 2. BajaJ Autos Ltd  Bajaj Auto Limited is an Indian motorized vehicle-producing company. Bajaj Auto is a part of Bajaj Group. Its founded by Jamnalal Bajaj at Rajasthan in the 1930s. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre Ahead. Bajaj Auto makes and exports automobiles, scooters, motorcycles and the auto rickshaw.  Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960.Department of Commerce , Karnatak University Dharwad Page 17
  18. 18. Stock Returns of Sensex 20  In 2010, Bajaj Auto announced the cooperation with Renault and Nissan Motor to develop of a US$ 2,500 car, aiming at a fuel-efficiency of 30 kilometres per litre or twice an average small car, and carbon dioxide emissions of 100 g/km. On 3 January 2012.  Bajaj auto unveiled the Bajaj RE60, a mini car for intra-city urban transportation. The target customer group will be Bajajs three-wheeler customers.  The Market Capitalization of the company is Rs 46,776.18 Crores.  CEO: Mr. Rajiv Bajaj Chairman: Mr. Rahul Bajaj 3. CIPLA (Chemical Industrial & Pharmaceutical Labs) Ltd  Established 1935 by Khwaja Abdul Hamied, the Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs.  Apart from its presence in the Indian market, Cipla also has an export market and regularly exports to more than 185 countries in all corners of the world.  Cipla cooperates with other enterprises in areas such as consulting, commissioning, engineering, project appraisal, quality control, know-how transfer, support, and plant supply.  Cipla is the worlds largest manufacturer of Antiretroviral drugs (ARVs) to fight HIV/AIDS, as measured by units produced and distributed (multinational brand-name drugs are much more expensive, so in money terms Cipla medicines are probably somewhere down the list). Roughly 40 percent of HIV/AIDS patients undergoing antiretroviral therapy worldwide take Cipla drugs  The Market Capitalization of the company is Rs 25,858.08 Crores.  CEO: Mr. S. Radhakrishan Chairman: Dr Y. K . HamiedDepartment of Commerce , Karnatak University Dharwad Page 18
  19. 19. Stock Returns of Sensex 20 4. DLF Ltd  The DLF Group was founded in 1946. It developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949. Since then it has been responsible for the development of many of Delhi’s other well known urban colonies, including South Extension, Greater Kailash, Kailash Colony and Hauz Khas.  DLFs primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any down-cycles in the market. From developing 22 major colonies in Delhi, DLF is now present across 18 states-28 cities in India.  DLF is credited with introducing and pioneering the revolutionary concept of developing commercial complexes in the vicinity of residential areas and bringing about a paradigm shift in the industry by redefining shopping, recreation and leisure experiences with the launch of City Centre in Gurgaon in 2000.  The Market Capitalization of the Company is Rs 30,834.19 Crores.  CEO: Mr. T.C Goyal Chairman: Mr. Kushal Pal Singh 5. HDFC (Housing Development Finance Corporation) Ltd  HDFC Ltd was established in 1977 with the primary objective of meeting a social need of encouraging home ownership by providing long-term finance to households.  Pioneer and leader in housing finance in India, since inception, HDFC has assisted more than 4.02 million customers to own a home of their own, through cumulative housing loan approvals of over Rs. 4.63 trillion and disbursements of over Rs. 3.74 trillion as at March 31, 2012.  HDFC has a wide network of 311 offices (which includes 74 offices of HDFCs wholly owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns & cities spread across the country.Department of Commerce , Karnatak University Dharwad Page 19
  20. 20. Stock Returns of Sensex 20  HDFC also has offices in Dubai, London and Singapore and service associates in the Middle East region, to provide housing loans and property advisory services to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).  The Market Capitalization of the company is Rs 91,734.84 Crores.  Founder: Mr. Hasmukh. T. Parekh CEO: Mr. Keki Mistry Chairman: Mr. Deepak. S. Parekh 6. HindalCo Industries Ltd  Hindalco Industries Limited was established in 1968. The metals flagship company of the Aditya Birla Group is the worlds largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location.  The acquisition of Novelis Inc. in 2007 positioned it among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India.  Today Hindalco Industries are a metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries.  Hindalco is one of the leading producers of aluminium and copper. Our aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.  Its copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers.  The Market Capitalization of the company is Rs 21,151.48 Crores.  CEO: Mr. Debnarayan Bhattachary Chairman: Mr. Kumar Mangalam BirlaDepartment of Commerce , Karnatak University Dharwad Page 20
  21. 21. Stock Returns of Sensex 20 7. HUL Ltd  Hindustan Unilever Limited (HUL) is Indias largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products.  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.  The Company has an annual turnover of around Rs. 21,736 crores (FY 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe. Unilever has about 52% shareholding in HUL.  The Market Capitalization of the company is Rs 92,534.35 Crores.  CEO: Mr. Nitin Paranjpe Chairman: Mr. Harish Manwani 8. IDBI Ltd  IDBI Bank Ltd. headquartered in Mumbai is today one of Indias largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation- building role, first as the apex Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that contributed towards balanced geographical spread of industries, development of identified backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant capital market. On October 1, 2004, the erstwhile IDBI converted into a Banking company (as Industrial Development Bank of India Limited) to undertake the entire gamut of Banking activities while continuing to play its secular DFI role.Department of Commerce , Karnatak University Dharwad Page 21
  22. 22. Stock Returns of Sensex 20  As on March 31, 2012, IDBI Bank has a balance sheet of Rs.2.91 lakh crore and business size (deposits plus advances) of Rs.3.92 lakh crore. As an Universal Bank, IDBI Bank, besides its core banking and project finance domain, has an established presence in associated financial sector businesses like Capital Market.  The Market Capitalization of the bank is Rs 11,422.34 Crores.  CEO: Mr. G. V. Nageshwar Rao Chairman: Mr. R. M. Malla 9. Infosys Technologies Limited  Infosys was co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K Dinesh and Ashok Arora with US$250. Today, Infosys is a global leader in the "next generation" of IT, consulting. and outsourcing with revenues of US$ 6.994 billion (FY12).  Infosys has a global footprint with 65 offices and 74 development centers in US, India, China, Australia, Japan, Middle East, UK, Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries. Infosys and its subsidiaries have 149,994 employees as on March 31, 2012.  Infosys ranked among the most innovative companies in a Forbes survey, leading technology companies in a report by The Boston Consulting Group and top ten green companies in Newsweeks Green Rankings.  Infosys was voted Indias most admired company in The Wall Street Journal Asia 200 every year since 2000. The corporate governance practices were recognized by The Asset Platinum award and the IR Global Rankings.  The Market Capitalization of the company is Rs 135,885.79 Crores.  CEO: Mr. S. D. Shibulal Chairman: Mr. V. K. KamatDepartment of Commerce , Karnatak University Dharwad Page 22
  23. 23. Stock Returns of Sensex 20 10. ITC Ltd  ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Companys 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 Companys multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Companys name were removed effective September 18, 2001. The Company now stands rechristened ITC Limited.  ITC is one of Indias foremost private sector companies with a turnover of US $ 7 billion.  The Market Capitalisation of the company is Rs 178,299.17 Crore.  CEO and Chairman: Mr. Yogesh. C. Deveshwar 11. Jaiprakash Associates Ltd  Jaiprakash Associates Ltd. (JAL), the flagship company of the Jaypee Group, was incorporated in 1996. In 2003 JAL was formed due to merger of Jaiprakash Industries (JIL) and Jaiprakash Cement (JCL).  The company is currently executing various projects in hydropower / irrigation / other infrastructure fields and has had the distinction of executing simultaneously 13 hydropower projects spread over six states and the neighbouring country Bhutan for generating 10,290 MW of power. The Jaypee Group undertakes projects involving; Large quantities of rock excavation (both surface and underground) Controlled earth/rock fill Concrete manufacture and placement (including chilling) Hydro-mechanical equipment procurement and erection Steel Structures Expressway Construction and Real Estate DevelopmentDepartment of Commerce , Karnatak University Dharwad Page 23
  24. 24. Stock Returns of Sensex 20  The Market Capitalization of the Company is Rs 12,875.55 Crores.  Executive Chairman: Mr. Sunny Gaur 12. Jindal Steet Works ltd  JSW Steel Ltd. is an Indian steel company owned by the JSW Group based in Mumbai, Maharashtra. JSW Steel is among Indias largest steel producers, with a capacity of 10 MT as of 2011.  As part of the US$10 billion O. P. Jindal Group, JSW Group has diversified interests in Steel, Energy, Minerals and Mining, Aluminium, Infrastructure and Logistics, Cement and Information Technology.  JSW Steel has also formed a many joint ventures in countries like Georgia, Japan and acquired mining license in Chile, USA and Mozambique. JSW Steel has recently acquired a majority stake in Ispat Industries Ltd. making it India’s largest steel producer with a combined capacity of 14.3 MTPA by March 2011.  By 2020, the Company aims to produce 34 million tons of steel annually with Greenfield integrated steel plants coming up in West Bengal near Salboni about 35 km from Kharagpur and Barenda in Ranchi district of Jharkhand.  The Market Capitalization of the company is Rs 13,820.99 Crores.  CEO: Dr. V. K. Nowal Chairman: Mr. Sajjan Jindal 13. Larsen and Toubro Ltd  L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing Indias engineering capabilities to meet the demands of industry.  L&T is Indias largest engineering and construction company, with a dominant presence in Indias infrastructure, power, hydrocarbon, machinery and railway related projects.  In recent years, L&T has expanded its global presence and international projects contributed 9% of its overall order book for the 2010–11.Department of Commerce , Karnatak University Dharwad Page 24
  25. 25. Stock Returns of Sensex 20  L&T has diversified businesses designated as ‘Independent Companies’ or ‘ICs’ in the fields such as Hydrocarbon, heavy Engineering, Construction, Power, Electrical and Automation, Machinery and Industrial Products, Information Technology, Financial Services.  The Company has 119 subsidiaries and 23 associates.  The Market Capitalization of the Company is Rs 65,972.87 Crores.  CEO: Mr. A. M . Nayak Chairman: Mr. K. Venkatramanan 14. Mahindra and Mahindra Ltd  Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, it has diversified into many new businesses in order to better meet the needs of customers. It follows a unique business model of creating empowered companies by the principle of entrepreneurial independence and Group-wide synergies which has led the company to grow into a US $15.4 billion multinational group with more than 144,000 employees in over 100 countries across the globe.  Today, its operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.  The Market Capitalization of the Company is Rs 40,316.66 Crores.  CEO: Mr. Anand Mahindra Chairman: Mr. Keshub MahindraDepartment of Commerce , Karnatak University Dharwad Page 25
  26. 26. Stock Returns of Sensex 20 15. Maruti Suzuki Ltd  Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades.  The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013.  The Company offers 15 brands and over 150 variants ranging from peoples car Maruti 800 to the latest Life Utility Vehicle, Ertiga.  In terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since the roll out of its first vehicle on 14th December, 1983.  Maruti Suzuki is the only Indian Company to have crossed the 10 million sales mark since its inception. In 2011-12, the company sold over 1.13 million vehicles including 1,27,379 units of exports.  The Market Capitalization of the company is Rs 34,449.64 Crores.  CEO: Mr. Shinzo Nakanishi Chairman: Mr. R. C. Bhargava 16. NTPC Ltd  India’s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 341st in the ‘2010, Forbes Global 2000’ ranking of the World’s biggest companies. NTPC became a Maharatna company in May, 2010, one of the only four companies to be awarded this status.Department of Commerce , Karnatak University Dharwad Page 26
  27. 27. Stock Returns of Sensex 20  The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal based and 7 gas based stations, located across the country. In addition under JVs, 7 stations are coal based & another station uses naptha/LNG as fuel.  The company has set a target to have an installed power generating capacity of 1,28,000 MW by the year 2032. The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources(RES) including hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC’s portfolio.  The Company has Market Capitalization of Rs 116,343.50 Crores.  Chairman cum CEO: Mr. Arup Roy Choudhury 17. ONGC Ltd  ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 74.14% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country.  It is an Indian state-owned oil and gas company headquartered in Dehradun, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of Indias crude oil (equivalent to around 30% of the countrys total demand) and around 81% of its natural gas. ONGC is one of the largest publicly traded companies by market capitalization in India. It is ranked 361st in the 2011 Fortune Global 500 list and is among the Top 250 Global Energy Company by Platts.  ONGC Videsh Limited (OVL) is the international arm of ONGC. It was rechristened on 15 June 1989. It currently has 14 oil and projects across 15 countries. Its oil and gas production reached 8.87 MMT of O+OEG in 2010,  In 2011, ONGC applied to purchase of 2000 acres of land at Dahanu to process offshore gas. ONGC Videsh, along with Statoil ASA (Norway) and Repsol SA (Spain), has been engaged in deepwater drilling off the northern coast of Cuba in 2012.  The Market Capitalization of the Company is Rs 212,090.60 Crores.  CMD: Mr. R. S. SharmaDepartment of Commerce , Karnatak University Dharwad Page 27
  28. 28. Stock Returns of Sensex 20 18. State Bank of India (SBI)  The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.  State Bank of India (SBI) is the largest banking and financial services company in India by revenue, assets and market capitalization. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra.  It has 14097 branches and 27286 ATMs across country (as on May 2012).  The bank has made its international presence with 174 office in 34 countries.  For the FY2011-12 the bank has reported Net Profit of Rs 11707 Crores and has market capitalization of Rs 122,747.52 Crores.  Chairman: Mr. Pratip Choudhari 19. Reliance Industries Ltd  The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 66 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.  Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.Department of Commerce , Karnatak University Dharwad Page 28
  29. 29. Stock Returns of Sensex 20  The Groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones.  RIL continues to be featured, for the sixth consecutive year, in the Fortune Global 500 list of the Worlds Largest Corporations, ranking for 2010 is as follows:  Ranked 175 based on Revenues  Ranked 100 based on Profits  RIL is ranked 68th in 2010, in the Financial Times FT Global 500 list of the worlds largest companies (up from previous years 75th rank).  The RIL consists of 130 subsidiaries and 1 associate.  The Market Capitalization of the Company is Rs 257,733.75 Crores.  CEO cum Chairman: Mr. Mukesh. D. Ambani 20. TATA Motors Ltd  Tata Motors Limited is Indias largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12.  Tata Motors is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the worlds fourth largest truck and bus manufacturer.  Established in 1945, Tata Motors presence indeed cuts across the length and breadth of India. Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).  Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains.Department of Commerce , Karnatak University Dharwad Page 29
  30. 30. Stock Returns of Sensex 20  The companys dealership, sales, services and spare parts network comprises over 3,500 touch points.  Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal.  Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008.  Tata Motors with TATA NANO was able to produce world’s cheapest Car  The Market Capitalization of the Company is Rs 85,802.67 Crores.  CEO: Mr. Harish Batt Chairman: Dr. Ratan TataDepartment of Commerce , Karnatak University Dharwad Page 30
  31. 31. Stock Returns of Sensex 20 Chapter 3 CONCEPTUAL BACKGROUND OF STOCK RETURNSDepartment of Commerce , Karnatak University Dharwad Page 31
  32. 32. Stock Returns of Sensex 203.1 Introduction The market often takes long time to reward stockholder with Stock Return that corresponds to company’s Return on Capital. To better understand these concepts it is crucial to differentiate Stock Returns from Return on capital. The return on capital is the measure of company’s profitability where as Stock Returns represents the combination of Dividends and Changes in Stock Price (better known as capital gains). The market often forgets the important relationship between Stock Returns and Return of capital. The company can earn high Return of capital but still the stockholder may suffer if the market price of the stock decreases over the same period. On the contrary the company with low Return on capital may experience its stock price increase if the firm performed less terribly than the market had expected. Or maybe the company currently losing lots of money, or investors had bid up its stock in anticipation of future profits.3.2 Meaning of Stock Returns To understand the meaning of stock returns, first, it is essential to know the meaning of Investment, Stock and Return. Investment Investment refers to purchase of an asset or item with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. Investment is a process of deferring current consumption for the sake of future consumption.Department of Commerce , Karnatak University Dharwad Page 32
  33. 33. Stock Returns of Sensex 20 What is Stock? Stock is An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporations assets and profits. Ownership in the company is determined by number of share the person owns divided by the total number of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain type of company called a corporation has stock; other type of companies such as sole proprietorships and limited partnerships do not issue stock also called equity or securities or corporate stocks. What is Return? Return is a primary motivating force that drives investment. It represents the reward for the undertaking investment. The returns of an investment consists of two components namely i) Current returns ii) Capital returns Current Returns: The current returns is related to periodic cash inflows such as dividends or interests generated by the investment. Current return is measured as with periodic income in relation to the beginning price of the investment. Capital Returns: The capital returns is reflected in the price change. It is simply the price appreciation or depreciation divided by the beginning price of the asset.Department of Commerce , Karnatak University Dharwad Page 33
  34. 34. Stock Returns of Sensex 20 Stock Returns So Stock Returns refers the reward for investing in the stocks. This reward includes the current returns and capital returns. In another, sense stock returns is the measure of performance of a stock. Total Stock Returns = Current Returns on stock + Capital Returns on stock3.3 Types of Stock Returns The Stock Returns are of two types i. Historical Stock Returns ii. Expected (Ex Ante) Stock Returns Historical Stock Returns is the measure of past performance of a security or index. Historical returns are a reflection of the performance of a particular security or index in the past. They are used in the development of informed investing decisions where risks and potential returns are balanced to create a portfolio with a probability of strong returns. Expected Stock Returns are the anticipated future returns on the stock. It is the weighted average of all the possible returns adjusted to their respective probabilities.3.4 Measuring Stock Returns Historical Stock Returns The total stock returns, for given period of time, is determined by the following formula: Dividends received Price change during the period + during the period Total Stock Return = Price at the beginning of the PeriodDepartment of Commerce , Karnatak University Dharwad Page 34
  35. 35. Stock Returns of Sensex 20 That is in formula terms D + (P1 – P0) D = Divided for the period R = P1 = Price at end of the period P0 P0 = Price at beginning of period Expected Stock Returns The expected stock returns is calculated on basis of the possible returns and probability of getting such returns. The expected Stock returns is calculated using the formula Where E(R) = Expected Stock Return Ri = Possible Returns Pi = ProbabilityThis project is based on the historical stock returns calculated for the FinancialYear 2011-2012.Excess Returns The returns from a Stock that exceeds a benchmark or index with a similar level of risk is called as excess returns. It is widely used as a measure of the value added by the portfolio or investment manager, or the managers ability to "beat the market." Excess Returns = Stock Returns – Index ReturnsDepartment of Commerce , Karnatak University Dharwad Page 35
  36. 36. Stock Returns of Sensex 203.5 Risk What is Risk? The chance that actual returns will be different than expected is called as risk. The Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviations indicates a high degree of risk. There are two types of risk namely: i. Unique risk ii. Market Risk Total Risk = Unique Risk + Market Risk Unique risk refers to that portion of total risk which is arises from specific factors like development of new product, labour strike etc. It is considered to be firm level risk and can be reduced. Market Risk is that portion of total risk which is attributable to economic factors like GDP, monetary policy etc. Measuring Risk The risk is usually measured in terms of standard deviations which is calculated as follow: Where S = Standard Deviation Ri = Returns for ith period = Average returnsDepartment of Commerce , Karnatak University Dharwad Page 36
  37. 37. Stock Returns of Sensex 203.5 Approaches of measurements The stock returns, as seen above, are based on the price at the beginning and closing period. There are two types of prices for each period i.e., Opening price and Closing price. The opening price is the price at which the security first trades upon the opening of the stock exchange, on a given trading day or period. The closing price is the final price at which the stock is traded on a given trading day, on a stock exchange. For the period of the one Financial Year, there exists as many as opening and closing prices, as much as days the working of stock exchange in an financial year. So, which prices are to be considered, for purpose of calculating stock returns is a big dilemma. So for this purpose, the experts have recommended four approaches. These four approaches of measuring the stock returns are; a. Open to Open approach b. Open to Close approach c. Close to Open approach d. Close to Close approach  Open to Open Approach: In this approach of calculating stock returns, only Opening Prices of the stock is considered. i.e., D + (OP1 – OP0) R = OP0 D = Divided for the period OP1 = Opening Price at end of the period OP0 = Opening Price at beginning of periodDepartment of Commerce , Karnatak University Dharwad Page 37
  38. 38. Stock Returns of Sensex 20  Open to Close Approach: In this approach of calculating stock returns, the opening price and the closing price of the stock is considered. i.e., the Closing Price of the stock at the end of the period and opening price of the stock at beginning of the period are taken and stock return is measured as follows: D + (CP1 – OP0) R = OP0 D = Divided for the period CP1 = Closing Price at end of the period OP0 = Opening Price at beginning of period  Close to Open Approach: In this approach of calculating stock returns, the closing price and opening price of the stock is considered. i.e., the Closing Price of the stock at the beginning of the period and Opening Price of the stock at closing of the period are taken and stock return is measured as follows: D + (OP1 – CP0) R = CP0 D = Divided for the period OP1 = Opening price at end of the period CP0 = Closing Price at beginning of periodDepartment of Commerce , Karnatak University Dharwad Page 38
  39. 39. Stock Returns of Sensex 20  Close to Close Approach: In this approach of calculating stock returns, the only Closing Prices of the stock is considered. i.e., D + (CP1 – CP0) R = CP0 D = Divided for the period CP1 = Closing Price at end of the period CP0 = Closing Price at beginning of period This project is based on the Close to Close approach. 1. Weekly Stock Returns The stock returns determined for the period of a week is called as weekly stock returns. 2. Monthly Stock Returns The stock returns determined for the period of a month is called as monthly stock returns. 3. Quarterly Stock Returns The stock returns determined for the period of a quarter consisting of 3 months is called as quarterly stock returns. 4. Half Yearly Stock Returns The stock returns determined for the period of a half year consisting of 6 months or 2 quarters is called as half-yearly stock returns. 5. Yearly Stock Returns The stock returns determined for the period of a year is called as yearly stock returns.Department of Commerce , Karnatak University Dharwad Page 39
  40. 40. Stock Returns of Sensex 20 Chapter 4ANALYSIS AND INTERPRETATIONDepartment of Commerce , Karnatak University Dharwad Page 40
  41. 41. Stock Returns of Sensex 20 1. In the below table numbered 1.1, 1.2, 2.1, 2.2, 3.1 and 3.2, the weekly stock returns of the Sensex 20 companies has been calculated for the financial year 2011-12. The weekly stock returns is calculated as follows:- D + CPL - CPO R = CPO D = Divided for the period CPL = Closing Price at Last working day of the week. CPF = Closing Price at First working day of the week. For the first week of FY 2011-12 CPL = Closing Price as on 8 April 2011. CPF = Closing Price as on 1 April 2011.  Similarly, the stock returns for all 52 weeks in the year are calculated.  The dividends are adjusted for the closing price of the respective week of realization of dividends.  Tables 1.1, 1,2, 2.1, 2.2, 3.1, 3.2 depicts (from the calculations) average weekly stock returns of 20 companies, where in, it is, from the calculations found that, 14 out of 20 companies show negative returns and rest 6 shows positive.  Companies like Mahindra and Mahindra, HUL, ITC, Bajaj Autos, Tata Motors etc have shown positive results.  And Companies like DLF, HindalCo, RIL, IDBI, SBI etc including BSE Sensex have shown negative results.Department of Commerce , Karnatak University Dharwad Page 41
  42. 42. Stock Returns of Sensex 20 Table 1.1 Showing Weekly Stock Returns for FY 2011-12 Weekly Returns (in %) Week AIR BJJ CPL DLF HDFC HIND SX ↓ 1 1.89 (3.13) (0.47) (4.37) 0.44 (2.38) 0.16 2 2.79 (0.13) 0.50 (5.55) (1.08) 0.38 (0.33) 3 1.20 3.64 0.28 0.82 4.13 5.00 1.11 4 0.58 0.72 (3.40) (9.78) (3.41) (1.95) (2.38) 5 (7.40) (10.51) (1.40) (1.62) (6.00) (7.18) (3.23) 6 4.69 1.38 2.08 5.88 (2.99) (0.75) 0.07 7 1.77 (0.51) 1.23 (1.96) 1.90 (3.37) (1.11) 8 (0.39) (1.16) 1.09 (1.08) (0.19) 3.38 (0.33) 9 1.67 4.33 2.05 3.73 0.39 (4.53) 0.60 10 (1.20) (3.38) 1.89 (1.16) (1.24) (2.74) (0.59) 11 1.73 0.95 (0.90) (2.82) (1.71) (7.80) (2.18) 12 2.89 3.33 (1.05) (3.52) 4.49 1.73 2.07 13 (2.02) 2.74 0.45 1.78 5.00 8.20 2.86 14 3.82 2.56 1.65 7.49 1.50 0.35 0.51 15 (1.38) (2.62) (2.38) (1.60) (2.72) (6.01) (1.57) 16 4.67 2.03 (0.62) 3.24 2.29 0.23 0.86 17 6.34 0.96 (4.81) (4.03) (2.42) (4.69) (2.80) 18 (5.00) (4.19) 0.10 (8.94) (3.19) (2.96) (4.90) 19 (6.23) 4.07 (4.82) (4.45) 0.16 (8.73) (2.69) 20 (1.49) (1.79) (2.05) (6.97) (4.77) (6.09) (4.14) 21 3.98 5.08 (2.62) (5.91) (2.71) (0.89) (1.81) 22 2.48 7.96 0.61 18.28 6.38 11.53 6.14 23 (2.03) 0.13 2.39 (4.04) (0.17) (3.54) 0.27 24 (3.62) (0.01) (1.70) 4.93 0.23 (3.67) 0.40 25 (2.85) (4.90) 0.37 (5.47) (5.41) (7.21) (4.56) 26 0.87 (0.75) 0.16 10.43 2.56 (2.62) 1.80Department of Commerce , Karnatak University Dharwad Page 42
  43. 43. Stock Returns of Sensex 20 Table 1.2 Showing Weekly Stock Returns for FY 2011-12 (Cont…) Weekly Returns (in %) Week AIR BJJ CPL DLF HDFC HIND SX ↓ 27 (6.16) (1.99) 0.07 (0.09) 0.60 (3.22) (1.34) 28 8.16 8.40 1.81 6.34 3.27 1.59 5.24 29 (1.52) 0.64 (0.81) (3.12) (4.51) (5.04) (1.74) 30 3.69 6.94 3.75 10.06 7.96 16.73 6.07 31 1.56 (0.65) (1.29) (100.00) (0.52) (2.04) (1.36) 32 (0.62) (0.18) (2.04) (7.48) (2.55) (7.48) (2.11) 33 0.54 (2.64) 8.72 (10.51) (3.03) (3.92) (4.78) 34 (5.72) (3.03) 1.12 (0.20) (4.87) (8.37) (4.13) 35 4.07 4.25 4.33 9.54 8.69 19.51 7.34 36 (8.06) (2.29) (1.53) (4.16) (2.15) (2.36) (3.76) 37 (6.24) (1.16) 1.18 (8.97) (3.27) (5.14) (4.45) 38 (1.74) (3.24) 0.35 (0.49) 4.65 (3.03) 1.60 39 3.77 (0.47) (3.33) (5.62) (1.99) (5.18) (1.80) 40 (3.70) (8.39) 6.20 (4.53) 3.58 3.21 2.67 41 1.32 (2.03) (0.50) 12.50 1.77 12.48 1.81 42 2.21 8.97 0.82 8.83 0.94 7.28 3.62 43 8.95 (1.26) 1.35 (1.12) 1.11 0.45 2.96 44 4.31 4.70 (0.03) 8.86 (0.01) 5.65 2.15 45 (9.96) 7.83 1.41 0.17 (0.76) (0.13) 0.82 46 (0.10) 3.69 (7.57) 10.03 3.31 (0.76) 3.05 47 (2.07) (1.86) (2.88) (10.62) (5.53) (2.12) (2.00) 48 2.31 (1.01) 0.35 (10.16) (0.33) (0.30) (1.60) 49 (3.23) 0.01 (1.81) (0.05) 1.16 (8.79) (0.76) 50 (3.51) (1.58) (2.30) (3.68) (2.30) 4.54 (0.21) 51 2.66 (0.62) (0.26) (0.03) (0.65) (6.30) (0.60) 52 0.31 (1.95) 1.21 2.70 1.88 (1.75) 0.24 Ave (0.02) 0.34 (0.06) (2.28) (0.04) (0.78) (0.17) SD 4.10 3.94 2.66 15.31 3.39 6.18 2.88Department of Commerce , Karnatak University Dharwad Page 43
  44. 44. Stock Returns of Sensex 20 Table 2.1 Showing Weekly Stock Returns for FY 2011-12 Weekly Returns (in %) Week HUL IDBI INFY ITC JPEE JSW L&T SX ↓ 1 (2.71) (0.03) 0.27 1.12 (0.84) 3.12 1.50 0.16 2 (0.22) 1.59 (7.38) 3.00 1.59 (2.13) 3.11 (0.33) 3 4.73 1.87 (2.66) (0.24) 3.91 1.50 (1.38) 1.11 4 (1.25) (4.40) (0.11) 1.08 (14.74) (2.48) (6.22) (2.38) 5 (3.68) (4.88) (0.66) (4.63) 1.76 (5.28) (3.35) (3.23) 6 11.56 0.88 (0.24) 3.54 (4.10) 4.09 (1.01) 0.07 7 1.17 (3.09) (1.02) (1.74) (3.55) (1.84) 8.05 (1.11) 8 (2.45) (2.81) (2.20) 1.39 8.06 1.98 (0.82) (0.33) 9 5.24 (0.04) 0.92 2.40 (2.37) 0.27 4.49 0.60 10 (2.42) 1.23 1.71 (1.19) (0.30) (4.15) (1.06) (0.59) 11 3.36 (1.98) (3.40) (0.03) (9.86) (3.71) (0.82) (2.18) 12 0.95 1.09 3.53 1.83 3.89 0.51 3.52 2.07 13 3.90 3.96 2.52 3.44 3.99 1.26 3.95 2.86 14 (0.82) 0.67 1.49 (0.74) (7.44) 0.05 1.52 0.51 15 (1.35) (1.03) (8.31) 0.77 2.31 (2.44) (0.93) (1.57) 16 1.34 0.26 3.47 2.60 (3.67) 0.98 0.41 0.86 17 (2.98) (4.77) (2.07) 0.75 (13.84) (10.92) (5.45) (2.80) 18 (1.71) (6.96) (6.37) (5.83) (4.73) (9.52) (4.98) (4.90) 19 (0.86) (1.04) (8.34) 1.12 (5.70) (6.36) 0.20 (2.69) 20 (0.19) (10.17) (6.28) (0.05) 8.46 1.44 (5.98) (4.14) 21 1.24 (2.49) (0.94) (0.65) (2.55) (8.61) (0.88) (1.81) 22 0.42 2.12 5.04 2.97 8.25 18.50 5.09 6.14 23 4.04 3.40 (1.92) (2.49) (3.09) (4.55) 5.01 0.27 24 2.04 (1.78) 5.38 0.15 12.77 (0.61) (4.75) 0.40 25 (2.66) (4.04) (2.23) (3.08) 1.10 (7.44) (9.78) (4.56) 26 2.79 (0.48) 8.28 2.86 (6.22) (6.55) (6.48) 1.80Department of Commerce , Karnatak University Dharwad Page 44
  45. 45. Stock Returns of Sensex 20 Table 2,2 Showing Weekly Stock Returns for FY 2011-12 (Cont…) Weekly Returns (in %) Week HUL IDBI INFY ITC JPEE JSW L&T SX ↓ 27 (3.25) (3.75) (1.06) 0.56 8.16 (4.54) 2.60 (1.34) 28 0.88 7.18 9.48 3.12 (4.85) 6.59 1.03 5.24 29 (1.81) (1.89) (0.80) (0.22) 2.34 (3.52) (5.10) (1.74) 30 7.16 9.38 5.03 5.55 5.26 14.39 5.78 6.07 31 8.41 1.41 (1.07) (2.69) 2.96 7.12 (1.44) (1.36) 32 4.57 (7.24) (1.89) 1.26 (10.40) (5.43) (4.47) (2.11) 33 (1.30) (9.53) (1.30) (5.78) (9.69) (9.15) (6.59) (4.78) 34 (4.04) (5.48) (5.07) (4.37) (0.39) (8.89) 1.83 (4.13) 35 5.26 6.45 3.70 7.98 11.24 14.28 3.55 7.34 36 (2.39) (4.83) 0.35 (4.90) (13.88) (7.66) (6.39) (3.76) 37 1.70 (7.01) 0.41 (0.76) (11.32) (13.23) (12.32) (4.45) 38 4.99 (4.64) (0.82) 4.48 0.65 0.70 (6.24) 1.60 39 (0.92) (5.35) 2.60 (1.69) 1.11 (1.22) (1.35) (1.80) 40 (2.65) 6.94 2.37 0.97 4.12 11.68 8.39 2.67 41 (1.20) 9.31 (8.66) 2.34 11.79 12.61 8.72 1.81 42 (0.37) 5.50 (0.08) (3.54) 10.70 1.61 8.63 3.62 43 (0.20) 4.74 5.30 1.05 (0.71) 2.15 8.46 2.96 44 2.74 (0.50) 2.18 (0.72) 6.51 7.06 (2.02) 2.15 45 (3.23) 5.25 0.10 1.59 6.79 15.24 (0.25) 0.82 46 (0.64) 12.07 6.03 0.59 0.69 4.65 7.28 3.05 47 0.00 (7.33) (0.11) 2.22 (6.37) (4.44) (6.82) (2.00) 48 (0.70) 2.79 (3.42) (1.79) (7.08) (3.77) (3.75) (1.60) 49 (0.13) (0.76) 0.47 1.17 19.76 (4.90) 0.22 (0.76) 50 2.20 (3.72) 0.22 4.78 (6.12) 0.04 1.36 (0.21) 51 3.28 0.47 0.15 2.13 3.83 (1.75) (1.33) (0.60) 52 1.65 (2.92) (0.19) 1.48 0.43 (1.78) 0.35 0.24 Ave 0.76 (0.51) (0.15) 0.45 (0.03) (0.29) (0.33) (0.17) SD 3.30 4.93 3.97 2.85 7.44 7.05 5.00 2.88Department of Commerce , Karnatak University Dharwad Page 45
  46. 46. Stock Returns of Sensex 20 Table 3.1 Showing Weekly Stock Returns for FY 2011-12 Weekly Returns (in %) Week M&M MSZ NTPC ONGC RIL SBI TM SX ↓ 1 1.97 (1.58) (2.78) (2.13) (1.07) 2.19 0.97 0.16 2 (1.73) 0.33 0.93 (0.40) (0.57) 0.87 (3.75) (0.33) 3 (0.98) 3.83 0.84 5.99 2.12 2.04 2.89 1.11 4 (1.03) 1.01 (2.65) 0.99 (5.58) (1.91) (1.15) (2.38) 5 9.08 (3.86) (3.87) (0.20) (2.70) (5.80) (4.10) (3.23) 6 9.13 (3.51) 0.09 (0.33) (0.71) 0.23 2.55 0.07 7 0.60 (0.27) (0.97) (9.97) (2.87) (12.34) (6.51) (1.11) 8 0.98 (0.44) (2.60) 3.46 2.70 (3.77) (4.55) (0.33) 9 (4.74) 1.48 3.29 (1.37) (1.07) 3.50 (4.95) 0.60 10 (1.13) (0.31) 0.97 (4.73) 0.84 (3.02) (1.17) (0.59) 11 0.15 (5.07) 1.48 (0.54) (8.01) (1.42) (8.15) (2.18) 12 2.75 (3.95) 1.87 2.88 0.23 3.48 5.06 2.07 13 6.64 1.99 2.17 1.25 (0.95) 5.81 3.55 2.86 14 1.81 3.56 2.10 0.14 (0.90) 2.38 4.20 0.51 15 (1.45) (0.82) (0.39) 0.40 2.21 (0.31) (3.65) (1.57) 16 1.73 (1.06) (3.07) 0.38 0.03 0.93 (1.20) 0.86 17 (5.34) 3.94 (3.85) (3.49) (5.25) (6.10) (4.34) (2.80) 18 (8.07) (1.22) (2.50) 2.97 (4.36) (4.66) (13.41) (4.90) 19 (3.73) 4.50 1.89 1.06 (3.90) (1.76) (6.28) (2.69) 20 (9.28) (6.77) (0.80) (1.86) (3.89) (7.00) (6.44) (4.14) 21 7.42 (7.07) (4.35) 0.62 (1.60) (7.41) 1.72 (1.81) 22 1.85 0.07 0.42 (4.54) 11.94 5.57 3.26 6.14 23 (0.75) 2.04 (2.10) (0.98) 2.45 (1.96) (8.83) 0.27 24 10.21 0.33 5.26 5.20 0.28 (0.48) 18.94 0.40 25 (7.64) (1.82) (3.23) (6.47) (6.85) 0.51 (6.26) (4.56) 26 2.73 (0.47) 0.48 3.56 4.87 (2.27) (5.43) 1.80Department of Commerce , Karnatak University Dharwad Page 46
  47. 47. Stock Returns of Sensex 20 Table 3.2 Showing Weekly Returns for FY 2011-12 (Cont..) Weekly Returns (in %) Week M&M MSZ NTPC ONGC RIL SBI TM SX ↓ 27 2.39 2.93 (0.39) (0.54) (0.85) (8.33) 20.03 (1.34) 28 8.57 (7.60) 3.84 0.62 8.15 7.46 5.60 5.24 29 1.98 6.21 (2.17) (0.49) (3.62) 3.51 2.92 (1.74) 30 5.43 3.27 5.52 7.01 7.49 (2.13) (0.03) 6.07 31 (0.32) (0.41) 0.53 (2.52) (2.05) 3.00 (5.39) (1.36) 32 (0.70) (5.71) (3.26) (3.74) 0.48 (8.48) 0.25 (2.11) 33 (2.50) (11.19) (6.28) (1.31) (8.58) (4.01) (7.49) (4.78) 34 (3.00) 0.99 (3.59) (4.45) (6.69) (2.02) 2.34 (4.13) 35 10.49 4.40 9.72 6.84 7.53 11.58 9.45 7.34 36 0.77 (0.62) (3.51) (2.68) (6.83) (1.20) (6.28) (3.76) 37 (5.37) (5.67) (3.07) (3.92) (4.30) (9.84) 3.84 (4.45) 38 3.77 4.80 (1.58) 4.16 3.24 (1.91) (2.42) 1.60 39 (0.06) (5.58) 1.32 (1.95) (7.17) (1.75) 12.44 (1.80) 40 7.40 3.16 (2.30) (0.21) 3.46 3.50 1.54 2.67 41 (0.41) 2.87 5.77 1.74 2.11 6.03 6.18 1.81 42 2.79 12.57 5.06 5.92 8.37 8.70 2.19 3.62 43 (4.41) 9.92 (0.34) 1.38 3.06 5.74 9.71 2.96 44 6.80 2.18 1.47 0.54 2.46 2.96 2.73 2.15 45 (1.22) 0.87 2.01 0.78 0.53 3.30 7.05 0.82 46 1.60 6.00 4.34 (0.41) (2.88) 11.24 (0.06) 3.05 47 2.23 (2.70) (2.21) 0.71 0.30 (8.69) 1.83 (2.00) 48 3.37 3.02 (2.67) (1.11) (0.73) 1.76 0.29 (1.60) 49 3.55 1.42 (2.80) 0.28 (5.00) (1.04) 3.68 (0.76) 50 0.15 2.37 (0.52) (3.80) (0.21) 0.25 0.02 (0.21) 51 0.28 (4.74) (0.67) (1.16) (3.62) (2.81) (3.74) (0.60) 52 (0.28) 3.09 (5.16) 0.19 0.57 (3.24) 1.01 0.24 Ave 1.05 0.21 (0.24) (0.12) (0.53) (0.37) 0.40 (0.17) SD 4.58 4.43 3.22 3.31 4.45 5.19 6.46 2.88Department of Commerce , Karnatak University Dharwad Page 47
  48. 48. Stock Returns of Sensex 20INTERPRETATION: The average weekly returns of the 14 companies out if 20 companies was found to be negative. The average weekly returns of BSE Sensex was also found to be negative i.e., -0.17 %. Out of the 20 companies, DLF was the worst performing stock with average weekly returns of -2.28 %, where as the Mahindra and Mahindra was the best performing one with average weekly returns of 1.05 %. The stocks of DLF is considered to be more risky as the Standard Deviation of the weekly returns of the DLF found to be 15.31% which is more than any other company or BSE Sensex. On the other hand, Cipla’s stock was found to be least risky. The banking companies performed almost in similar passion with same level of average returns ranging from -0.37% to -0.04% and risk at 3% to 5%. The automobile industries, surprisingly performed better, all four companies viz Bajaj Autos, Mahindra and Mahindra, Maruti Suzuki and Tata Motors, yielded positive returns. Both the FMCG companies, i.e., HUL and ITC performed well by providing positive average weekly returns. All construction and real estate companies’ stock found to be more risky. The metal industry companies i.e., JSW and HindalCo found to be risky and also yielded negative returns at almost same level of risk. The average weekly returns of petrochemical companies namely RIL and ONGC were also negative. The telecommunication and IT companies namely Airtel and Infosys respectively found to be almost same risky but yielded negative returns.Department of Commerce , Karnatak University Dharwad Page 48
  49. 49. Stock Returns of Sensex 20 2. In the below tables numbered 4.1, 4.2, and charts numbered 1, 2, 3 and 4, the monthly stock returns of the Sensex 20 companies has been calculated for the financial year 2011-12. In this context the monthly stock returns are calculated as follows: D + (CPL – CPF) R = CPF Where D = Divided for the period CPL = Closing Price at Last working day of the month. CPF = Closing Price at First working day of the month. For the Month of April CPL = Closing Price as on 29th April 2011 CPF = Closing Price as on 1st April 2011.  Similarly, the stock returns for all 12 Months in the year are calculated.  The dividends are adjusted for the closing price of the respective month of realization of dividends.  Tables numbered 4.1, 4.2, and charts numbered 1, 2, 3 and 4 tells us that average monthly stock returns of 20 companies, where in, it is, from the calculations found that, 15 out of 20 companies show negative returns and rest 5 shows positive.  Here also the Companies like Mahindra and Mahindra, HUL, ITC, Bajaj Autos, Tata Motors have yielded positive returns, which also showed similar performance in weekly periods.  And Companies like HindalCo, RIL, L&T, and SBI etc have provided negative returns.Department of Commerce , Karnatak University Dharwad Page 49
  50. 50. Stock Returns of Sensex 20 Table 4.1 Showing Monthly Returns for FY 2011-12 Monthly Returns (in %) Apl May June July Aug Sept AIR 6.60 (2.55) 3.62 13.97 (8.19) (7.48) BJJ 0.99 (6.13) 5.03 2.88 5.69 (5.49) CPL (3.09) 3.48 1.01 (6.12) (8.79) 1.18 DLF (3.60) 5.27 (10.93) 4.79 (14.91) 5.12 HDFC (0.07) (2.01) 1.95 (1.44) (4.27) (2.93) HIND 0.89 (7.25) (8.62) (9.90) (10.41) (16.04) HUL 0.40 8.43 10.58 (3.80) (0.57) 6.23 IDBI (1.10) (4.11) 1.30 (4.88) (14.16) (3.02) INFY (9.70) (4.50) 3.39 (5.71) (16.60) 9.43 ITC 5.02 0.97 4.61 3.40 (3.93) (2.63) JPEE (10.76) 1.17 (2.48) (21.40) 0.00 3.62 JSW (0.11) 4.82 (8.60) (12.20) (2.40) (17.94) L&T (3.21) 2.47 8.34 (4.52) (8.68) (15.61) M&M (1.81) 19.44 3.39 (3.38) (10.35) 3.79 MSZ 3.56 (4.93) (7.24) (7.24) (9.63) 0.03 NTPC (3.68) (6.86) 6.92 (5.22) (4.15) 0.21 ONGC 4.34 (6.67) (2.77) (2.60) (3.65) (3.65) RIL (5.15) (1.34) (5.19) (4.00) (5.95) 0.36 SBI 3.17 (14.63) 3.28 (3.27) (15.77) (4.15) TM (1.15) (7.22) (5.20) (5.11) (21.18) (3.86) SX (1.46) (2.60) 1.27 (3.01) (8.94) (2.19)Department of Commerce , Karnatak University Dharwad Page 50
  51. 51. Stock Returns of Sensex 20 Table 4.2 Showing Monthly Returns for FY 2011-12 (Cont…) Monthly Returns (in %) Oct Nov Dec Jan Feb Mar Ave SD AIR 2.85 (2.38) (9.51) 5.80 (3.28) (2.67) (0.27) 6.98 BJJ 14.33 (2.45) (6.49) 8.54 11.80 (5.58) 1.93 7.30 CPL 3.27 13.36 (3.27) 9.35 (9.31) (3.61) (0.21) 6.91 DLF 20.09 (12.52) (16.09) 20.51 4.28 (6.13) (0.34) 12.53 HDFC 8.43 (5.80) (1.24) 7.17 (3.96) 0.72 (0.29) 4.37 HIND 9.75 (8.96) (12.35) 32.13 (2.97) (13.59) (3.94) 13.34 HUL 12.20 1.97 4.30 (5.73) (1.27) 7.83 3.38 5.77 IDBI 15.36 (18.61) (17.32) 28.63 8.05 (4.34) (1.18) 13.56 INFY 16.11 (8.09) 4.23 (2.19) 5.14 0.57 (0.66) 9.01 ITC 9.71 (3.86) (1.64) 2.93 3.38 9.46 2.28 4.67 JPEE 7.43 (13.94) (20.81) 36.35 (1.64) 15.99 (0.54) 16.11 JSW 18.75 (6.80) (18.10) 30.07 13.71 (7.44) (0.52) 14.90 L&T 7.21 (8.73) (23.14) 29.92 (2.76) 2.26 (1.37) 13.40 M&M 20.34 7.55 0.06 3.47 11.71 2.27 4.71 8.97 MSZ 4.50 (14.32) (4.36) 26.07 3.50 2.63 (0.62) 10.33 NTPC 8.89 (8.45) (3.43) 8.66 5.92 (7.69) (0.74) 6.59 ONGC 3.25 (3.30) (3.41) 6.67 7.26 (6.82) (0.95) 4.96 RIL 11.36 (9.50) (13.22) 15.35 (1.40) (1.40) (1.67) 8.02 SBI 2.36 (7.33) (10.98) 26.47 8.01 (5.62) (1.54) 11.52 TM 28.02 1.91 5.39 21.14 7.86 2.93 1.96 13.00 SX 9.62 (7.76) (6.24) 10.80 2.61 (2.99) (0.91) 6.17Department of Commerce , Karnatak University Dharwad Page 51
  52. 52. Stock Returns of Sensex 20 Chart 1 Showing Monthly Returns for FY 2011-12 25.00 20.00 15.00 AIR 10.00 BJJ 5.00 CPL 0.00 DLF 1 2 3 4 5 6 7 8 9 10 11 12 HDFC (5.00) SX (10.00) (15.00) (20.00) Chart 2 Showing Monthly Returns for FY 2011-12 40.00 30.00 20.00 HIND HUL 10.00 IDBI 0.00 INFY 1 2 3 4 5 6 7 8 9 10 11 12 ITC (10.00) SX (20.00) (30.00)Department of Commerce , Karnatak University Dharwad Page 52
  53. 53. Stock Returns of Sensex 20 Chart 3 Showing Monthly Returns for FY 2011-12 40.00 30.00 20.00 JPEE JSW 10.00 L&T 0.00 M&M 1 2 3 4 5 6 7 8 9 10 11 12 MSZ (10.00) SX (20.00) (30.00) Chart 4 Showing Monthly Returns for FY 2011-12 40.00 30.00 20.00 NTPC ONGC 10.00 RIL 0.00 SBI 1 2 3 4 5 6 7 8 9 10 11 12 TM (10.00) SX (20.00) (30.00)Department of Commerce , Karnatak University Dharwad Page 53
  54. 54. Stock Returns of Sensex 20INTERPRETATION: The average monthly returns of BSE Sensex was also found to be negative. HindalCo was the worst performing stock, where as the Mahindra and Mahindra was the best performing one even for the monthly returns. The stock of JaiPrakash Associates, with Standard deviation of monthly returns being 16.11%, found to be more volatile than any other company or even BSE Sensex . On the contrary, HDFC stock was found to be least volatile with SD of monthly returns being 4.37%. The banking companies performed same but level of risk was low with HDFC and was high with IDBI. The automobile industry, overall showed the promising performance. Both the FMCG companies, i.e., HUL and ITC performed well by providing positive average monthly returns. All the construction and real estate companies’ stocks found to be more risky. The metal industries’ companies i.e., JSW and HindalCo found to be risky and also yielded negative returns with almost same level of risk. The average monthly returns of petrochemical companies namely RIL and ONGC were disappointing. The telecommunication industry was less risky than IT industry and also yielded better than IT comparatively. All the companies including BSE Sensex provided positive returns in the month of October and almost all companies did well in the month of January except Infosys. The month of June was also good, as most companies gave positive results. On the other hand, July was worst month, as maximum number of companies including BSE Sensex reduced the shareholders wealth.Department of Commerce , Karnatak University Dharwad Page 54
  55. 55. Stock Returns of Sensex 20 3. Here the following table numbered 5 and charts numbered 5, 6, 7 and 8, shows the quarterly returns of the Sensex 20 companies for the financial year 2011-12. In this context the quarterly stock returns are calculated as follows: D + (CPL – CPF) R = CPF D = Divided for the period CPL = Closing Price at Last working day of the quarter. CPF = Closing Price at First working day of the quarter. For the first quarter of FY 2011-12 CPL = Closing Price as on 30th June 2011. CPF = Closing Price as on 1st April 2011  Similarly, the stock returns for all 4 Quarters in the year are calculated.  The dividends are adjusted for the closing price of the respective Quarter of realization of dividends.  Table numbered 5, and charts numbered 5, 6, 7 and 8 gives us the information about quarterly stock returns of 20 companies, where in, it is, from the calculations found that, 15 out of 20 companies show negative returns and rest 5 shows positive.  It can be determined, from the table, that, almost all companies did well in the in fourth quarter i.e., the period from January to March.  Almost all the companies performed worst in the second quarter i.e., the period from October to December.  In the Odd quarters, the DLF, L&T, Jaiprakash Associates, HindalCo, IDBI etc were the great losers.Department of Commerce , Karnatak University Dharwad Page 55
  56. 56. Stock Returns of Sensex 20  On the other hand, Mahindra and Mahindra ITC, HUL Tata Motors and Bajaj Autos continued the top run. Table 5 Showing Quarterly Returns for FY 2011-12 Quarterly Returns (in %) April-June July-Sept Oct-Dec Jan-Mar Ave SD AIR 11.23 (1.395) (9.89) (2.363) (0.606) 8.756 BJJ (3.67) 8.007 5.07 13.756 5.791 7.267 CPL 2.84 (13.150) 11.57 (5.062) (0.949) 10.598 DLF (22.39) (0.771) (9.18) 12.476 (4.967) 14.643HDFC (0.85) (8.560) 2.19 3.200 (1.006) 5.323HIND (15.79) (30.451) (7.09) 15.022 (9.577) 19.023HUL 20.67 1.039 21.93 1.864 11.375 11.475IDBI (6.27) (24.030) (23.16) 32.952 (5.127) 26.670INFY (9.66) (13.649) 11.66 2.143 (2.376) 11.511 ITC 10.81 (1.983) 3.11 14.131 6.516 7.309JPEE (13.27) (16.280) (23.42) 50.554 (0.606) 34.371 JSW (7.07) (32.944) (7.72) 34.376 (3.339) 27.881L&T 10.40 (24.868) (24.51) 29.551 (2.357) 26.948M&M 20.08 (11.914) 26.84 22.021 14.258 17.678MSZ (9.09) (5.435) (14.58) 44.012 3.724 27.120NTPC (1.09) (10.081) (2.49) 2.877 (2.695) 5.423ONGC (6.66) (3.599) (4.90) 3.770 (2.845) 4.585 RIL (13.30) (6.246) (12.09) 5.842 (6.449) 8.754 SBI (11.53) (21.065) (13.06) 28.555 (4.274) 22.282 TM (19.99) (27.248) 36.74 35.713 6.304 34.679 SX (2.96) (12.306) (4.31) 9.928 (2.412) 9.203Department of Commerce , Karnatak University Dharwad Page 56

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