AURORA’S PG COLLEGE (MBA)

(Autonomous)

Accredited by NAAC with A+ Grade

Ramanthapur, Hyderabad, Telangana – 500013

PROJECT REPORT ON

PORTFOLIO MANAGEMENT

AT

INDIAN INFOLINE LIMITED

Project Report submitted in partial fulfilment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

BOLLAPALLI DHEERAJ BHARADWAJ

(H.T.No. 1302-23-672-242)

Under the Supervision of

Dr. N. RADHIKA

2023 – 2025 Batch

 DECLARATION

I, BOLLAPALLI DHEERAJ BHARADWAJ hereby declare that this Project Report

entitled A Study On Portfolio Management At Indian Infoline Limited is a result of the
work carried out at _____________________________________________ and submitted by
me to the Department of Management, Aurora’s PG College(MBA), Ramanthapur is a
Bonafide work done by me and it is not submitted to any other University or Institution for the
award of any degree/ diploma/certificate or published at any time before the submission of
report.

Name and Address of the Student Signature of the Student

AURORA’S POST-GRADUATE COLLEGE (MBA)

(Autonomous)

Accredited with A+ Grade by NAAC

Ramanthapur, Hyderabad – 500 013

CERTIFICATE

This is to certify that the Project Report entitled A Study On Portfolio Manangement At
Indian Infoline Limited submitted in partial fulfilment of the requirements of MBA
Programme from the Department of Management, Aurora’s PG College(MBA), Ramanthapur,
was carried out by BOLLAPALLI DHEERAJ BHARADWAJ with H.T.No.1302-23-672-242
under our guidance. This has not been submitted to any other University or Institution for the
award of any degree/diploma/ certificate.

Internal Guide External Examiner

Head of the Department Principal

 ACKNOWLEDGEMENT

This acknowledgement is a humble attempt to earnestly thank all those who are directly or
indirectly involved with my project and were of immense help to me.

First of all, I would like to express my sincere thanks to the Director, Aurora’s PG College
and H.O.D, Department of Management for giving me this opportunity to carry out the
project. I acknowledge with greatest courtesy the efforts taken by DR.N.RADHIKA, my
internal guide, who took genuine interest in my project and helped me, understand the basic
concepts of the project when necessary.

BOLLAPALLI DHEERAJ BHARADWAJ

Name of the Student

 DATE: 16TH June 2025

CERTIFICATE

This is to certify that the project entitled “PORTFOLIO MANAGEMENT”

submitted by BOLLAPALLI DHEERAJ BHARADWAJ (H.T. NO: 1302-23-

672-242), in partial fulfilment for the award of the degree of MBA is a bonafide

work carried out by him in INDIA INFOLINE LIMITED. HYDERABAD, 45

Days from under our guidance and supervision. He has completed the assigned

project as per requirement within the time frame, his performance during the

period work was found to be excellent.

We wish all the best in the endeavours.

 ABSTRACT

Portfolio management is a formal record of financial activities of a business, person or

other entity. Relevant financial information is presented in a structural manner and in a
form of easy to understand. They typically include basic financial statements,
accompanied by a management discussion and analysis: a balance sheet also referred to as
a statement of financial position, reports on a company’s assets liabilities and ownership
equity at a given point of time. An income statement also referred as a statement of
comprehensive income, statement of revenue and expenses, profit and loss report, reports
on company income, expenses and profit over a period of time.
The financial statement is prepared by certain accounting conventions and principles.
Accounting itself is a dynamic science, and accountants have developed, from time to
time, a number of conventions on the experiences. Even though a number of conventions
and assumptions have been propounded in accountancy, their use is affected by the
personal judgment of accounts. The financial statement is affected by the personal
judgment of accountants and such as they are subjective documents. The company should
increase sales volume as well as gross profit. Despite price drops in various products, the
company has been able to maintain and grow its market share to make strong margins in
market, contributing to the strong financial position of the company.
 INDEX

S.No Contents Page No

Declaration i

Certificate (College) ii
Acknowledgement iii
Abstract iv
Certificate (Company) v
Index vi
List of Tables vii
List of Graphs/Figures viii
Chapter 1 Introduction 1-8
1.1 Introduction
1.2 Need for the Study
1.3 Scope of the Study
1.4 Objectives of the Study
1.5 Research Methodology
Chapter 2 Review of Literature 9-20
2.1 Theoretical Review
2.2 Articles

Chapter 3 Industry & Company Profile 21-36

3.1 Industry Profile

3.2 Company Profile

Chapter 4 Data Analysis & Interpretation 37-66

4.1 Calculation of Risk & Return (GMR, HDFC, M&M,

Cipla, TCS)
4.2 Interpretation of Results

Chapter 5 Findings, Suggestions & Conclusion 67-75

5.1 Findings
5.2 Suggestions
5.3 Conclusion
Bibliography 76-77
 List of Tables

Table No Title Page No

4.1 Calculation of Risk of GMR Infratech 37

4.2 Calculation of Risk of HDFC Bank 40

4.3 Calculation of Risk of Mahindra & Mahindra 43

4.4 Calculation of Risk of Cipla 46

4.5 Calculation of Risk of TCS 49

4.6 Calculation of Return of GMR Infratech 52

4.7 Calculation of Return of TCS 55

4.8 Calculation of Return of Cipla 58

4.9 Calculation of Return of Mahindra & Mahindra 61

4.10 Calculation of Return of HDFC Bank 64

List of Graphs

Chart No Title Page No

4.1 Graph Showing Risk of GMR Infratech 39

4.2 Graph Showing Risk of HDFC Bank 42

4.3 Graph Showing Risk of Mahindra & Mahindra 45

4.4 Graph Showing Risk of Cipla 48

4.5 Graph Showing Risk of TCS 51

4.6 Graph Showing Return of GMR Infratech 54

4.7 Graph Showing Return of TCS 57

4.8 Graph Showing Return of Cipla 60

4.9 Graph Showing Return of Mahindra & Mahindra 63

4.10 Graph Showing Return of HDFC Bank 66

1.1. INTRODUCTION

1.1.1. Introduction to Portfolio Management

In the modern financial world, investment decisions play a crucial role in wealth creation,
preservation, and financial security. Investors, whether individuals or institutions, seek to
maximize returns while minimizing risks associated with their investments. Portfolio
management serves as a strategic tool that helps investors in structuring, managing, and
optimizing their investment portfolios to achieve desired financial goals.

Portfolio management involves selecting a mix of assets, including equities, bonds, mutual
funds, real estate, and alternative investments, based on an investor’s financial objectives, risk
appetite, and market conditions. The process includes investment planning, asset allocation,
risk management, diversification, performance evaluation, and periodic adjustments to ensure
that the portfolio remains aligned with the investor’s objectives.

Indian financial markets have witnessed significant growth over the years, and the increasing
number of investment options has made portfolio management an essential service for
investors. Indian Infoline Limited (IIFL) is one of the leading financial services firms in India,
offering a wide range of investment solutions, including portfolio management services
(PMS). With its robust research-driven approach, IIFL has helped investors navigate the
complexities of financial markets, enabling them to make informed investment decisions.

1.1.2. Importance of Portfolio Management

Portfolio management is essential for ensuring efficient and effective investment decisions. It
helps investors in:

1. Optimizing Returns – By selecting the right mix of assets, investors can maximize their
returns while minimizing risks.
2. Risk Diversification – Investing across multiple asset classes reduces the impact of
negative performance in any single investment.
1
 3. Professional Expertise – Portfolio managers use market research, technical analysis, and
economic indicators to make better investment choices.
4. Tax Efficiency – Proper tax planning ensures higher post-tax returns.
5. Liquidity Management – Ensures availability of funds when required for different
financial needs.
6. Market Volatility Management – Helps investors navigate market fluctuations with
minimal losses.

With increasing financial awareness, investors in India are recognizing the importance of
professional portfolio management. IIFL has emerged as a reliable financial services provider,
offering customized investment solutions tailored to the needs of different investor segments.

1.1.3. Overview of Indian Infoline Limited (IIFL)

Indian Infoline Limited (IIFL) is one of India’s leading financial services firms, providing
investment solutions in areas such as wealth management, stockbroking, mutual funds,
insurance, loans, and portfolio management. Established in 1995, IIFL has grown into a
diversified financial conglomerate catering to retail, institutional, and high-net-worth
individuals (HNI).

Key Services Offered by IIFL:

1. Portfolio Management Services (PMS) – Customized investment solutions for HNIs and
institutional investors.
2. Stockbroking – Trading and investment services in equities, derivatives, and
commodities.
3. Wealth Management – Advisory and investment services for wealth preservation and
growth.
4. Mutual Funds & SIPs – Investment solutions for retail investors.
5. Insurance & Loans – Financial solutions for risk coverage and capital requirements.

2
IIFL’s Portfolio Management Services (PMS) are among the most sought-after investment
solutions, offering customized strategies based on market research, financial analysis, and
investor-specific objectives.

1.1.4. Role of Portfolio Management at IIFL

At IIFL, portfolio management plays a crucial role in helping clients achieve long-term wealth
creation while managing market risks efficiently. Some of the key aspects of portfolio
management at IIFL include:

1. Asset Allocation Strategy – Identifying the right mix of asset classes (equities, bonds,
alternative investments) based on client risk appetite.
2. Active and Passive Investment Approaches – Adopting a combination of active (high-
frequency trading, sector rotation, alpha generation) and passive (index-based, ETF
investments) strategies.
3. Risk Assessment & Mitigation – Identifying market risks, economic risks, inflation
risks, and sectoral risks to build resilient portfolios.
4. Continuous Monitoring & Rebalancing – Reviewing the portfolio regularly and making
necessary adjustments to enhance performance.
5. Tax Optimization Strategies – Structuring investments in a way that maximizes post-tax
returns through tax-saving instruments.
6. Sectoral & Thematic Investment Strategies – Identifying high-growth industries and
market trends to capitalize on sectoral opportunities.

By integrating these strategies, IIFL ensures that clients achieve consistent financial growth
while minimizing risks associated with market fluctuations and economic downturns.

3
1.2 NEED OF THE STUDY

Portfolio management has emerged as a separate academic discipline in India. Portfolio theory,
which deals with the rational investment decision-making process, has now become an integral
part of financial literature.

Investing in securities such as shares, debentures, and bonds is both profitable and exciting. It
is indeed rewarding but involves a great deal of risk and requires artistic skill. Investing in
financial securities is now considered one of the riskiest 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 a portfolio. The creation of a portfolio
helps reduce risk without sacrificing returns.

Portfolio management deals with the analysis of individual securities as well as the theory and
practice of optimally combining securities into portfolios. The modern theory suggests that
diversification can help reduce risk. An investor can achieve diversification by holding a large
number of shares of companies in different regions, different industries, or those producing
different types of product lines.

Modern portfolio theory emphasizes the importance of combining securities under constraints
of risk and return to achieve an optimal balance.

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1.3 SCOPE OF THE STUDY

Study on The Markowitz Model

This study covers the Markowitz Model. It includes the calculation of correlations between
different securities to determine the optimal percentage allocation of funds among companies
in the portfolio. Additionally, the study involves calculating the individual Standard
Deviation of securities and concludes with the computation of the weights of individual
securities within the portfolio.

These percentage allocations help in distributing investment funds based on risky portfolios.
The data for equity picks was collected exclusively from the CNX Nifty Index, meaning the
study focuses solely on stocks from the CNX Nifty Index. The historical data used for the
equity portfolio study covers the immediate previous year, from 1st June 2022 to 31st May
2023.

5
1.4 OBJECTIVES OF THE STUDY

• To study the investment pattern and its related risks & returns in the selected stocks
• To examine the factors influencing individual investor’s decision to make portfolio choice
• To compare selected stocks with BSE Sensex index
• To construct portfolios of positively correlated and negatively or less correlated stocks
• To calculate risk and return of different stocks
• To evaluate the risk and return of those newly constructed portfolios

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1.5 RESEARCH METHODOLOGY

Nature of the Study:

The study focuses on portfolio management, which involves selecting and managing
investments to optimize returns while minimizing risk. It covers the Markowitz model, which
helps calculate correlations between securities and allocate funds efficiently. The study
includes standard deviation calculations to measure risk and evaluates investment patterns
based on historical data from the CNX Nifty index.

Data collection methods:

• The data collection method: Secondary data collection

• Secondary sources include lectures from the department of market operations, news,
magazines, and relevant financial books.

Standard Deviation:
The concept of standard deviation was first suggested by Karl Pearson in 1893. It is defined
as the positive square root of the arithmetic mean of the squares of deviations of the given
observations from their arithmetic mean. In short, S.D is “Root Mean Square Deviation from
Mean.”
Formula:

SD=1N∑i=1n(Xi−Xˉ)2SD = \sqrt{\frac{1}{N}\sum_{i=1}^{n}(X_i - \bar{X})^2}SD=N1

i=1∑n(Xi−Xˉ)2

Variance:
The square of the standard deviation is known as Variance.

Variance=(S.D)2\text{Variance} = (S.D)^2Variance=(S.D)2

Correlation:
The correlation coefficient determines the degree to which two variables’ movements are
associated. It ranges from -1 to +1.
7
 • 1.0 = perfect positive correlation
• -1.0 = perfect negative correlation

Sample Size, Statistical Tools, and Techniques:

• Sample Size: CNX Nifty index stocks from June 1, 2022, to May 31, 2023
• Statistical Tools:
o Standard Deviation
o Variance
o Correlation Analysis

Techniques Used:

• Portfolio construction of positively and negatively correlated stocks

• Risk and return analysis using historical data
• Comparative study of selected stocks with the BSE Sensex inde

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2.1. Theoretical Review of Literature

A literature review serves as a critical analysis of existing research, identifying key trends,
developments, and knowledge gaps in portfolio management. This section explores global
and Indian perspectives, with a focus on portfolio management practices and their
relevance to Indian Infoline Limited (IIFL).

Global Perspective on Portfolio Management

1. Modern Portfolio Theory (MPT) – Introduced by Harry Markowitz (1952), MPT

emphasizes diversification as a strategy to reduce risk while maximizing returns.
Studies affirm that a well-diversified portfolio enhances performance without excessive
risk (Fama & French, 1993).
2. Capital Asset Pricing Model (CAPM) – Developed by William Sharpe (1964),
CAPM establishes the link between risk and expected returns, using the beta
coefficient to measure systematic risk. It is widely applied to evaluate portfolio
strategies in financial institutions.
3. Behavioral Finance – Research by Kahneman & Tversky (1979) highlights
psychological biases like overconfidence and loss aversion, which impact investment
decisions. Professional portfolio managers help mitigate these biases to enhance
rational decision-making.
4. Risk Management – Studies (Jorion, 2007) emphasize identifying, assessing, and
mitigating risks through tools like Value at Risk (VaR), stress testing, and scenario
analysis. Financial institutions, including PMS providers, use these tools to optimize
portfolios.

9
Indian Perspective on Portfolio Management

1. Growth of PMS in India – Portfolio Management Services (PMS) have gained

popularity among HNIs and institutional investors due to their customized approach
and professional expertise (Chandani & Rathi, 2017). Retail investors benefit from
structured portfolio management.
2. Asset Allocation Trends – Indian portfolio managers focus heavily on equities and
real estate, balancing risks with debt securities. However, market volatility
necessitates a well-diversified mix of equity, debt, gold, and international assets (Jha
& Rajput, 2015).
3. SEBI Regulations – The Securities and Exchange Board of India (SEBI) enforces
strict guidelines for transparency, disclosures, and risk management in PMS,
enhancing investor confidence (Sharma & Khanna, 2014).
4. Challenges in Indian PMS – Issues such as market volatility, regulatory changes,
and low financial literacy impact PMS effectiveness. Retail investors often react to
short-term market fluctuations, leading to inconsistent performance (Gupta & Kumar,
2019).
5. Technology in Portfolio Management – The integration of AI, big data, and
machine learning is revolutionizing asset allocation and investment decisionmaking.
IIFL and other PMS providers leverage technology to offer personalized solutions
(Nair & Singh, 2020).

10
2.2. Review of Literature

Article 1: New Product Portfolio Management: Practices and Performance

Author(s): Elko J. Kleinschmidt, Robert G. Cooper

Journal: Journal of Product innovation Management,16(4),1999.

Abstract :Effective portfolio management is vital for successful product innovation. It

involves making strategic choices—determining which markets, products, and technologies a
business will invest in. It is also about resource allocation, ensuring that scarce engineering,
R&D, and marketing resources are used effectively.

Portfolio management focuses on project selection, helping businesses decide which new
product or development projects to pursue from the many opportunities available.
Additionally, it ensures balance, maintaining the right proportion between the number of
projects undertaken and the available resources or capabilities. The research first assesses
management's satisfaction with the portfolio methods they employ and notes that some firms
face significant challenges in portfolio management. Next, businesses are categorized into
four groups based on management’s perspective on portfolio management:

1. Cowboys

2. Crossroads

3. Duds

4. Benchmark Businesses

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Article 2: Supplier relationship portfolio management: A social exchange perspective
Author(s): Scott C.Ellis, JaeyoungOh, Nallan C. Suresh

Journal: Journal of Purchasing and Supply Management, Available online 23 February

2024.

Abstract : Despite the importance of relationship portfolios, it remains unclear how a buying
firm's differential investment in its suppliers affects the distribution of supplier relationships
and the benefits provided by suppliers. Drawing from Social Exchange Theory (SET), we
assess the sequential linkages among supply management practices, supplier relationship
sets varying in closeness, and relational benefits.

Empirically, we adopt a multi-methodological approach that combines abductive case-

based and deductive survey-based research. In our case-based approach, we analyze
interview responses from 34 professionals within a global Tier 1 automotive manufacturer
(MFGR) and four of its suppliers. Additionally, we examine openended survey responses
from 56 buyers and 86 engineers within MFGR, along with documentary evidence and direct
observations, to facilitate the operationalization of supply management practices and
relationship closeness constructs.

The survey-based study integrates case-based findings and utilizes response data from sales
managers within 292 suppliers to MFGR. It also includes matched supplier performance
data from MFGR to test a theoretical model of social exchange

12
Article 3: Online Portfolio Management via Deep Reinforcement Learning with High-
Frequency Data Authors: Jiahao Li, Yong Zhang, Xingyu Yang

Journal: Information Processing & Management, Volume 60, Issue 3, May 2024

Abstract: Recently, models based on Transformer (Vaswani et al., 2017) have yielded
superior results in many sequence modeling tasks. The ability of the Transformer to capture
long-range dependencies and interactions makes it a promising approach for portfolio
management (PM). However, the built-in quadratic complexity of the Transformer
prevents its direct application to PM tasks.

To address this issue, we propose a deep reinforcement learning-based PM framework

called LSRE-CAAN, which incorporates two key components:

1. A long-sequence representations extractor

2. A cross-asset attention network

Additionally, Direct Policy Gradient is employed to solve the sequential decisionmaking

problem in the PM process.

13
Article 4: Contextual Combinatorial Bandit on Portfolio Management

Authors: He Ni, Hao Xu, Dan Ma, Jun Fan

Journal: Expert Systems with Applications, Available online 20 February 2024, 119677

Abstract : Portfolio optimization is a classic problem in finance, where assumptions are

generally made about the stochastic dynamics of prices and market information. The
Linear Upper Confidence Bound (LinUCB) algorithm, based on bandit learning, is a
reinforcement learning approach that offers a data-driven solution to the portfolio problem.

Most investors may have inconsistent preferences for different assets; therefore, the reward
function needs to be designed to balance:

1. Exploration – allocating part of the investment to search among alternative portfolios

2. Exploitation – concentrating the investment on the historically bestperforming
portfolio

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Article 5: Dynamic Asymmetric Dependence and Portfolio Management in

Cryptocurrency Markets

Authors: Danyang Li, Yukun Shi, Liao Xu, Yahua Xu, Yang Zhao

Journal: Finance Research Letters, Volume 48, August 2023

Abstract : As a new form of digital assets based on blockchain technology, cryptocurrencies

have received increasing attention from both researchers and practitioners. However,
limited research has explored their joint dynamics from a portfolio management
perspective. This paper investigates the dependence dynamics across four major
cryptocurrencies and their economic importance in portfolio management using data from
January 2014 to June 2021. Our empirical analysis reveals that significant economic gains
can be achieved by modeling dynamic asymmetric dependence among cryptocurrencies.

Additionally, we demonstrate that our findings remain robust even during recent market
fluctuations caused by COVID-19

15
Article 6: Shipbuilding Supply Chain Framework and Digital Transformation:

Project Portfolio Risk Evolution

Authors: Rafael Diaz, Katherine Smith

Journal: Procedia Manufacturing, Volume 42, 2021

Abstract: Program portfolio managers in digital transformation programs require

knowledge to guide decisions aligning program investments with the sustainability and
strategic objectives of the organization. The purpose of this research is to illustrate the utility
of a framework that clarifies cost-benefit trade-offs in assessing digitalization program
investment risks within the military shipbuilding sector.

Our approach employs Artificial Neural Networks (ANN) to quantify project-specific

benefits and risks, while scenario analysis evaluates the effects of operational constraints.
A Monte Carlo model generates data samples supporting the Neural Network execution,
enabling the application of Portfolio Management Theory principles to organize and assess
the digitalization project portfolio’s performance.

We demonstrate the framework's utility through a theoretical case study, presenting various
digitalization investment scenarios. The study concludes that this framework contributes to
portfolio management and calls for further work to formalize portfolio assessment activities,
incorporating acceptable risk ranges that guide budget allocation decisions

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Article 7: The Geometric Portfolio Optimization with Semivariance in Financial
Engineering

Author: Maojun Zhang

Journal: Systems Engineering Procedia, Volume 3, 2012

Abstract: This paper examines a portfolio optimization problem focused on maximizing

the geometric mean return, subject to lower semivariance as a risk measure in financial
engineering.

We present the optimal conditions for this approach and outline a solution method using
Monte Carlo simulation. A numerical experiment demonstrates the efficiency of the
proposed method.

17
Article 8: Resource Management Process Framework for Dynamic NPD

Portfolios

Author: Rui Abrantes

Journal: International Journal of Project Management, Volume 33, August 2015

Abstract

This paper presents empirical research on how companies developing new products
reconfigure human resources as continuous changes occur in their New Product
Development (NPD) portfolios. While resource scheduling and allocation methods have
been widely studied in academic literature, a systematic and holistic resource management
process that supports an entire organization’s portfolio remains underexplored.

Using an action research approach, we collaborated with project teams in a multinational

company, enabling close observation of managerial challenges in responding quickly and
effectively to frequent changes. This research enhances the understanding of the context in
which resource management decisions are made.

For practitioners, this study proposes a process framework that enables organizations to
effectively manage resources within dynamic NPD portfolios.

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Article 9: A Portfolio of Commentary and Opinion

Author: D. E. Hussey

Journal: Long Range Planning, Volume 16, Issue 1, February 1983

Abstract

Historically, technological advancements in rechargeable batteries have resulted from

scientific discoveries, followed by development cycles and eventual commercialization.
These improvements have largely stemmed from unanticipated discoveries and
experimental trial-and-error activities.

However, with the increased complexity of rechargeable battery systems and the
diversification of new, highly demanding applications, a strategic approach is required to
commercialize newly developed battery chemistries.

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Article 10: Recent Developments in Project-Based Organizations

Author: Michel Thiry

Journal: International Journal of Project Management, Volume 25, Issue 7, October 2007

Abstract

Project-based organizations (PBOs) encompass various organizational structures that create

temporary systems to execute project tasks. In recent years, PBOs have gained increasing
attention as an emerging organizational form.

Recent studies indicate that mature PBOs must adopt integrative approaches to establish
consistent structures, align with strategic objectives, and standardize knowledge
management. However, it is widely acknowledged that PBOs face challenges in integrating
knowledge and organizational structures, as projects are often perceived as "singular
ventures."

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CHAPTER 3

3.1 INDUSTRY PROFILE

Indian Stock Markets: A Bright Spot for Investors

In 2017, Indian stock markets, as measured by the BSE Sensex, delivered a positive return of
approximately 9% for investors. This contrasted sharply with the performance of precious
metals, with gold prices falling by about 3% and silver plummeting close to 24%. This
marked the second consecutive year of underperformance for gold and silver compared to
equities, after gold had outperformed the stock market for over a decade.

Experts attribute gold's underperformance to falling prices in dollar terms, driven by

anticipated tapering of stimulus by the US Federal Reserve, combined with significant Foreign
Institutional Investor (FII) investment in Indian stocks. Jayant Manglik, President Retail
Distribution, Religare Securities, noted that "gold and stock prices follow opposite trends and
this year was no different except that both changed direction."

The improvement in the global economy has fueled increased risk appetite among retail
investors, diverting liquidity away from safe havens like gold. In 2012, the Sensex had gained
over 25%, nearly double the gains seen in gold (about 12.95%) and silver (about 12.84%).

Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, highlighted that markets showed
significant strength post-July-August 2017, following strong measures by the RBI to control
the depreciating rupee. He also explained that initial "knee-jerk correction" in risky assets due
to US Fed tapering indications was countered by the Fed's assurance of "planned and staggered
tapering," which acted as a catalyst for the markets. Dhakan projected a "bumper closing of
Indian markets in 2019 with double-digit percentage growth," driven by a combination of
domestic and international factors, despite potential negative external factors in the first half
of 2019.

However, not all segments of the stock market performed equally in 2017, with mid-cap and
small-cap indices falling by approximately 10% and 19%, respectively. Foreign
21
 Institutional Investors (FIIs) remained significant players, buying shares worth over Rs 1.1
lakh crore (nearly USD 20 billion) until December 19, 2017, compared to Rs 1.28 lakh crore
(USD 24.37 billion) in 2012.

Evolution of Indian Stock Markets

The history of Indian stock markets dates back almost 200 years. Early records indicate
securities dealings in the late eighteenth century, primarily involving the loan securities of the
East India Company. By the 1860s, trading in corporate stocks and shares of banks and cotton
presses emerged in Bombay. The "Share Mania" began around 1861-62, fueled by the
American Civil War halting cotton supply from the United States, leading to a surge in brokers
from a mere half dozen to 200-250. However, a disastrous slump followed the end of the
American Civil War in 1865.

In 1875, brokers who thrived after the Civil War formally established the "Native Share and
Stock Brokers' Association," also known as "The Stock Exchange," in Bombay (now
famously located on Dalal Street). This marked the consolidation of the Bombay Stock
Exchange.

Other major cities also saw the rise of stock exchanges driven by their dominant industries:

• Ahmedabad: Gained importance due to the cotton textile industry, leading to the formation
of "The Ahmedabad Share and Stock Brokers' Association" in 1894.
• Calcutta: The jute industry, along with tea and coal, propelled the establishment of "The
Calcutta Stock Exchange Association" on June 8, 1908.
• Madras: Experienced its first stock exchange, "The Madras Stock Exchange," in 1920,
though it briefly ceased to exist by 1923 due to a fading boom. It was reorganized as the
Madras Stock Exchange Association (Pvt) Limited in 1937 (later Madras Stock Exchange
Limited in 1957).
• Lahore: The Lahore Stock Exchange was formed in 1934 and later merged with the Punjab
Stock Exchange Limited in 1936.

22
 Indian Stock Exchanges - An Umbrella Growth

The Second World War (1939) initially led to a sharp boom and then a slump, but the situation
changed in 1943 as India became a supply base. Restrictions on commodities like cotton and
bullion pushed traders towards the stock market, leading to the formation of numerous new
associations and stock exchanges across the country. Notable additions included:

• Uttar Pradesh Stock Exchange Limited (1940)

• Nagpur Stock Exchange Limited (1940)

• Hyderabad Stock Exchange Limited (1944)

• Delhi Stock Exchange Association Limited (formed in June 1947 by the amalgamation of two
earlier exchanges)

Post-Independence Scenario

After independence, many exchanges faced difficulties. Lahore Exchange closed during
partition and later merged with Delhi Stock Exchange. The Bangalore Stock Exchange
Limited was registered in 1957 and recognized in 1963.

By 1957, only well-established exchanges in Bombay, Calcutta, Madras, Ahmedabad,

Delhi, Hyderabad, and Indore were recognized under the Securities Contracts
(Regulation) Act, 1956. The government adopted a principle of unitary control, refusing
recognition to other "pseudo stock exchanges," which subsequently ceased to function. For
nearly two decades, the number of recognized exchanges remained at eight.

However, the 1980s saw a significant increase in new stock exchanges, including:

• Cochin Stock Exchange (1980)

• Uttar Pradesh Stock Exchange Association Limited (Kanpur, 1982)

• Pune Stock Exchange Limited (1982)

• Ludhiana Stock Exchange Association Limited (1983)

• Gauhati Stock Exchange Limited (1984)

23
• Kanara Stock Exchange Limited (Mangalore, 1985)

• Magadh Stock Exchange Association (Patna, 1986)

• Jaipur Stock Exchange Limited (1989)

• Bhubaneswar Stock Exchange Association Limited (1989)

• Saurashtra Kutch Stock Exchange Limited (Rajkot, 1989)

• Vadodara Stock Exchange Limited (Baroda, 1990)

• Coimbatore and Meerut (recently established at the time of the text)

This growth brought the total number of recognized stock exchanges to twenty-one, excluding
the Over-the-Counter Exchange of India Limited (OTCEI) and the National Stock Exchange
of India Limited (NSEIL). The period after 1985 witnessed remarkable growth in Indian stock
markets, not only in the number of exchanges but also in listed companies and their capital,
largely due to supportive government policies.

Trading Pattern of the Indian Stock Market

Trading on Indian stock exchanges is limited to listed securities of public limited companies,
broadly categorized as:

• Specified Securities (forward list): Typically, equity shares of dividend-paying, growth-

oriented companies with a paid-up capital of at least Rs. 50 million, market capitalization of
at least Rs. 100 million, and over 20,000 shareholders.
• Non-Specified Securities (cash list): All other securities.

Two types of transactions are permitted:

• Spot delivery transactions: For delivery and payment within 17 days of the contract date.
• Forward transactions: Delivery and payment can be extended by 17-day periods, not
exceeding 90 days from the contract date. This is only allowed for specified shares, with
brokers charging contango or backwardation fees.

24
 Unlike New York and London Stock Exchanges, a member broker in India can act as both an
agent (buying/selling for clients on commission) and a trader/dealer (buying/selling for their
own account and risk). Traditionally, trading relied on face-to-face open outcry, though
significant efforts were underway to modernize.

Over The Counter Exchange of India (OTCEI)

Established in 1992, the OTCEI was India's first ringless, scripless, electronic stock exchange,
aiming to address inefficiencies like lack of liquidity, transparency, long settlement periods,
and benami transactions in traditional markets. It was promoted by premier financial
institutions.

Trading on OTCEI is conducted across centers nationwide. Securities are classified into:

• Listed Securities: Shares and debentures listed exclusively on the OTC.

• Permitted Securities: Shares and debentures listed on other exchanges and mutual fund units.
• Initiated Debentures: Equity holdings with at least one lakh debentures of a particular scrip
offered for trading.

A unique feature of OTCEI is that actual certificates of listed securities and initiated debentures
are not traded; instead, a counter receipt is generated and used for transactions, with the
original certificate held by a custodian. For permitted securities, the system is similar to
traditional exchanges, but delivery and payment are completed within 17 days.

Advantages of OTCEI include:

• Widely dispersed trading mechanism: Enhances liquidity and reduces intermediary charges.
• Greater transparency and accuracy of prices: Achieved through screen-based, scripless
trading.
• Investor awareness of exact transaction price: Shown directly on the computer screen.
• Faster settlement and transfer process.
• Quicker allotment and trading commencement for OTC issues (within a month).

25
 National Stock Exchange (NSE)

Incorporated in 1992 based on the Pherwani Committee recommendations, the National Stock
Exchange (NSE) was created to elevate the Indian stock market to international standards
following economic liberalization. It was promoted by major financial institutions, including
IDBI, ICICI, IFCI, insurance corporations, and commercial banks.

Trading at NSE is broadly categorized into:

• Wholesale Debt Market: Involves high-value transactions in financial instruments like

government securities, treasury bills, and PSU bonds, primarily by institutions and corporate
bodies.
• Capital Market: Focuses on equity and other capital market instruments.

NSE has two types of players:

• Trading members: Recognized members who trade on behalf of themselves and clients.
• Participants: Includes trading members and large entities like banks that take direct
settlement responsibility.

Trading on NSE utilizes a fully automated screen-based trading mechanism that operates on
an order-driven market principle. Trading members can execute trades from their offices via
a communication network, with matching buy and sell prices appearing on screen leading to
immediate transaction completion and confirmation.

Advantages of NSE include:

• Integrated national stock market trading network.

• Uniform pricing across the country: Allowing investors to trade at the same price
regardless of location.
• Elimination of communication delays, late payments, and malpractices: Achieved
through greater operational efficiency and informational transparency via a fully computerized
network.

26
The NSE plays a crucial role in providing professionalized services to attract small and foreign
investors, which is vital for the capital market as a major source of long-term industrial finance
in India.

Preamble to Economic Planning in India

In economic literature, "development" and "growth" are often used interchangeably, but they
differ. Economic growth refers to a sustained increase in per capita or total income, while
economic development implies sustained structural change, encompassing the complex
effects of economic growth. Growth is associated with free enterprise, whereas development
often requires control and regulation. Thus, economic development is a process, and growth is
a phenomenon.

Economic planning is crucial for a developing country like India to achieve economic growth
through sustained development.

Why Economic Planning for India?

Economic planning in India primarily aims to increase the rate of economic development by
boosting capital formation through higher income, saving, and investment. India faces
challenges like widespread poverty, low saving capacity due to low incomes and high
consumption, leading to low investment, capital deficiency, and low productivity, creating a
vicious cycle that necessitates planning to break.

The market mechanism in developing nations often functions imperfectly due to ignorance and
unfamiliarity. Planning is vital to strengthen it. In India, a significant portion of the economy
is non-monetized, and markets for products, factors of production, money, and capital are not
properly organized. This leads to the failure of the price mechanism to balance aggregate
demand and supply. Planning is essential to remove market imperfections, mobilize and utilize
resources efficiently, and overcome structural rigidities.

27
 Given India's scarce capital and prevalent unemployment/disguised unemployment, providing
employment opportunities for a growing labor force is a challenge that only a centralized
planning model can address.

Furthermore, with high agricultural dependence, economic development must adopt a

balanced approach to link agriculture and industry for parallel growth. Both sectors require
adequate infrastructural facilities, which only the state can provide through a well-defined
planning strategy. The private sector's role in India's infrastructural development is minimal
due to perceived unprofitability, making government intervention through planning
indispensable.

Finally, India suffers from significant income disparity, making it the state's duty to reduce
these inequalities, a task possible only through effective planning.

Planning History of India

The concept of economic planning in India predates independence, with early nationalists
advocating central direction of resources to alleviate poverty. The Congress Party developed
economic programs in the 1920s and 1930s, forming a National Planning Committee under
Jawaharlal Nehru in 1938. Though its work was halted by World War II, it laid the
groundwork. Post-war, the Interim Government appointed an Advisory Planning Board, which
recommended the establishment of a Planning Commission.

The Planning Commission properly commenced its work in 1950, after India adopted its
Constitution in January 1950, following the tumultuous period of partition and the integration
of princely states.

Objectives of Indian Planning

The Planning Commission was established with several directive principles:

• Assessment and augmentation of resources: To evaluate material, capital, and human

resources and identify possibilities for augmenting deficient resources.

28
• Formulation of effective resource use plans: To create plans for the most balanced and
effective utilization of national resources.
• Defining stages and allocating resources: To prioritize and define stages of plan execution,
proposing resource allocation for each.
• Identifying impediments to development: To pinpoint factors hindering economic
development and determine conditions necessary for successful plan execution.
• Determining implementation machinery: To define the mechanisms required for
successful implementation at every stage.
• Appraising progress and recommending adjustments: To regularly assess progress and
suggest policy and measure adjustments as needed.
• Making interim or auxiliary recommendations: To provide advice on prevailing
economic conditions, policies, and specific problems referred by Central or State
Governments.

The long-term general objectives of Indian Planning include:

• Increasing National Income.

• Reducing inequalities in income and wealth distribution.
• Elimination of poverty.
• Providing additional employment.
• Alleviating bottlenecks in agricultural production, manufacturing capacity for producer's
goods, and balance of payments.

Economic growth has remained the primary objective across all Five-Year Plans, typically
targeted at a rate of five percent per annum, which is justified given India's long period of
stagnation under British rule.

29
 3.2 COMPANY PROFILE

About IIFL

The IIFL (India Infoline) Group, comprising the holding company India Infoline Ltd and
its subsidiaries, is a prominent player in the Indian financial services sector. IIFL provides a
comprehensive platform for financial services, offering advice and execution across a wide
range of products including:

• Equities and derivatives

• Commodities
• Wealth management
• Asset management
• Insurance
• Fixed deposits
• Loans
• Investment Banking
• Government of India bonds
• Other small savings instruments

IIFL has expanded its global reach, recently receiving in-principle approval for Securities
Trading and Clearing memberships from the Singapore Exchange (SGX), positioning it to be
the first Indian brokerage to achieve this. It also secured membership of the Colombo Stock
Exchange, making it the first foreign broker to enter Sri Lanka. The group operates
www.indiainfoline.com, a leading Indian online platform for personal finance, stock markets,
economy, and business news.

IIFL has garnered significant industry recognition, including:

• 'Best Broker, India' by Finance Asia

• 'Most improved brokerage, India' in the Asia Money polls
• 'Fastest Growing Equity Broking House - Large firms' by Dun & Bradstreet
30
Known for its strong equity research, IIFL's research has been lauded by Forbes as 'Best of
the Web' and a "must read for investors in Asia." Its research is widely accessible through
international wire services like Bloomberg, Thomson First Call, and Internet Securities, where
it consistently ranks among the most read Indian brokers.

With a vast network of over 2,500 business locations spread across more than 500 cities and
towns in India, IIFL effectively acquires and services a large customer base. All offices are
seamlessly connected to the corporate office in Mumbai using advanced networking
technology.

31
History & Milestones

1995 Commenced operations as an Equity Research firm

1997 Launched research products of leading Indian companies, key sectors and
the economy Client included leading FIIs, banks and companies.

1999 Launched www.indiainfoline.com

2000 Launched online trading through www.5paisa.com Started distribution of

life insurance and mutual fund

2003 Launched proprietary trading platform Trader Terminal for retail customers
Acquired commodities broking license
2004
Launched Portfolio Management Service

2005 Maiden IPO and listed on NSE, BSE

Acquired membership of DGCX
2006
Commenced the lending business

2007 Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

Transitioned to insurance broking model

2009 Acquired registration for Housing Finance

SEBI in-principal approval for Mutual Fund
Obtained Venture Capital license

2010 Received in-principal approval for membership of the Singapore Stock

Exchange Received membership of the Colombo Stock Exchange

2011 Launched IIFL mutual funds

32
33
 Board of directors

IIFL’s philosophy on Corporate Governance

IIFL (India Infoline) is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory
compliances, but also of effective management.

Audit Committee

Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr. Nilesh Vikamsey (Chairman), Mr. Sat Pal Khattar, Mr. Kranti Sinha, three of
whom are independent Directors. The Managing Director, the Executive Director along with
the Statutory and Internal Auditors are invitees to the Meeting. The Terms of reference of
this committee are as under: - To investigate into any matter that may be prescribed under
the provisions of Section 292A of The Companies Act, 1956 - Recommendation and
removal of External Auditor and fixation of the Audit Fees. - Reviewing with the
management the financial statements before submission of the same to the Board. -
Overseeing of Company’s financial reporting process and disclosure of its financial
information. - Reviewing the Adequacy of the Internal Audit Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr. Kranti Sinha (Chairman), Mr. Nilesh Vikamsey
and Mr. Sat Pal Khattar all of whom are independent Directors. The Terms of reference of
this committee are as under: - To fix suitable remuneration package of all the Executive
Directors and Non- Executive Directors, Senior Employees and officers i.e., Salary,
perquisites, bonuses, stock options, pensions etc. - Determination of the fixed component
34
 and performance linked incentives along with the performance criteria to all employees of
the company .
Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr. Kranti Sinha, a Non-executive independent Director. The other
Members of the committee are Mr. Nirmal Jain and Mr. R Venkataraman. MS Sunil Lotke,
Company Secretary is the Compliance Officer of the Company.
In line with our vision to be the ‘most respected company in the financial services space’,
we recognize the importance of contributing to and sustaining social transformation. With
this end in mind, we have setup the IIFL foundation, which will work for the support and
upliftment of the underprivileged sections of society. The IIFL Foundation focuses on
specific areas of need such as healthcare and education, the foundation will screen and select
institutions and developmental agencies which are working in these domains and will
provide necessary aid to improve the lives of the underprivileged and help them in achieving
their potential.
Some of the activities undertaken by the IIFL Foundation:

Barsana eye camp

The IIFL Foundation sponsored an eye and dental camp held in February, 2010 with the
support of expert doctors and surgeons from the Bhakti Vedanta Hospital in Barsana near
Mathura. While over 2,600 people underwent eye tests and over 800 were selected for free
eye surgery, a total of over 1,800 dental procedures like extraction, scaling and filling,
among others, were performed. Team IIFL provided its whole-hearted support to this noble
cause and will continue to do so in the futur

35
Pandharpur medical camp

The IIFL Foundation sponsored the Pandharpur medical camp which was held by the Bhakti
Vedanta Hospital in July 2010 at Pandharpur. Free medical treatment was given at 4 camp
sites, to approximately 49,819 pilgrims who had come to Pandharpur during Assadi
Ekadashi. The pilgrims were treated for fever, injuries, fractures, gastroenteritis, myalgia,
headache, epilepsy, malaria, respiratory infections etc., during the camp.

Blood donation drive

IIFL regularly organizes blood donation drives via camps at its various locations across
India. Over 800 employees have participated in these camps.

36
4.1 DATA ANALYSIS AND INTERPRETATION

Table 4.1: Calculation of Risk of GMR Infratech

Date Open High Low Close Adj Close

01-04-2019 16.10 18.65 15.35 17.25 17.25
01-05-2019 17.25 17.70 14.20 15.05 15.05
01-06-2019 15.25 22.05 14.60 19.65 19.65
01-07-2019 19.85 20.25 17.20 18.80 18.80
01-08-2019 18.95 19.15 15.10 17.20 17.20
01-09-2019 17.25 18.55 15.40 16.40 16.40
01-10-2019 16.40 19.70 15.40 19.20 19.20
01-11-2019 19.50 19.85 15.65 18.35 18.35
01-12-2019 18.50 22.80 16.30 22.45 22.45
01-01-2020 22.70 25.05 20.60 21.75 21.75
01-02-2020 21.80 23.90 17.20 18.95 18.95
01-03-2020 18.90 19.20 16.30 16.85 16.85
01-04-2020 17.25 21.40 17.05 20.50 20.50
01-05-2020 20.50 20.95 16.40 18.15 18.15
01-06-2020 17.90 17.90 14.55 15.30 15.30
01-07-2020 15.40 19.50 15.15 17.75 17.75
01-08-2020 17.90 21.25 17.25 21.10 21.10
01-09-2020 21.05 21.50 15.10 16.20 16.20
01-10-2020 16.15 17.55 15.15 16.85 16.85
01-11-2020 16.85 17.75 15.65 16.10 16.10
01-12-2020 16.20 16.65 14.65 16.40 16.40
01-01-2021 16.50 17.25 15.00 15.20 15.20
01-02-2021 15.35 16.65 12.95 16.20 16.20
01-03-2021 16.25 21.35 16.25 19.80 19.80
01-04-2021 19.55 19.95 16.45 16.65 16.65
01-05-2021 16.65 17.45 14.90 15.50 15.50
01-06-2021 15.55 15.70 14.05 14.90 14.90
01-07-2021 15.05 16.05 14.30 14.95 14.95

37
01-08-2021 14.95 16.20 14.45 15.05 15.05
01-09-2021 15.05 17.75 14.55 17.00 17.00
01-10-2021 17.10 21.60 16.15 20.75 20.75
01-11-2021 20.70 22.70 20.15 21.90 21.90
01-12-2021 21.40 22.05 19.95 21.00 21.00
01-01-2022 21.05 25.00 20.75 22.85 22.85
01-02-2022 22.65 26.50 19.75 20.00 20.00
01-03-2022 20.70 21.20 14.10 16.35 16.35
01-04-2022 16.25 18.15 15.90 17.10 17.10
01-05-2022 17.10 20.40 16.30 18.95 18.95
01-06-2022 19.25 21.95 18.90 20.05 20.05
01-07-2022 20.15 24.05 19.25 21.75 21.75

01-08-2022 21.75 28.25 20.60 23.55 23.55

01-09-2022 23.55 24.65 20.80 23.05 23.05
01-10-2022 23.15 24.70 23.10 23.40 23.40
01-11-2022 23.40 27.25 22.95 26.80 26.80
01-12-2022 27.00 29.35 23.70 26.50 26.50
01-01-2023 26.50 28.30 23.70 23.85 23.85
01-02-2023 24.05 27.50 23.50 26.05 26.05
01-03-2023 26.40 29.95 23.50 24.30 24.30
01-04-2023 24.65 25.30 22.50 22.95 22.95
01-05-2023 22.65 27.75 22.55 26.05 26.05
01-06-2023 26.20 33.90 25.45 31.80 31.80
01-07-2023 32.15 33.15 27.35 28.40 28.40
01-08-2023 28.60 29.90 27.35 29.05 29.05
01-09-2023 29.20 39.40 28.90 38.35 38.35
01-10-2023 38.30 46.10 37.50 40.55 40.55
01-11-2023 40.70 43.35 36.25 37.60 37.60
01-12-2023 37.75 48.50 37.25 45.75 45.75
01-01-2024 46.55 49.15 39.00 42.10 42.10
01-02-2024 42.80 44.50 33.85 37.90 37.90
01-03-2024 37.90 40.85 35.45 36.95 36.95

38
 01-04-2024 36.90 41.30 36.40 37.65 37.65
Standard Deviation 7.76

Figure 4.1: Calculation of Risk of GMR Infratech

GMR
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61

Interpretation: The above table and Graph represent Risk of GMR Infratech. The GMR
has Standard Deviation of 7.76. The highest market value is 45.75 on 1st December 2022 and
the lowest value is 14.90 on 1st June 2021.

39
Table 4.2: Calculation of Risk of HDFC Bank

Date Open High Low Close Adj Close

01-04-2019 723.00 786.97 712.53 773.25 736.50
01-05-2019 773.25 824.00 761.30 818.10 779.22
01-06-2019 819.50 858.00 810.28 826.03 786.77
01-07-2019 826.30 899.40 822.50 892.20 855.45
01-08-2019 890.92 904.58 865.58 888.22 851.63
01-09-2019 890.50 934.00 869.00 902.85 865.66
01-10-2019 902.85 939.80 878.92 904.25 867.00
01-11-2019 907.55 937.75 894.00 926.85 888.67
01-12-2019 927.45 951.55 899.50 936.20 897.63
01-01-2020 936.35 1006.75 925.25 1002.85 961.54
01-02-2020 1003.00 1007.50 918.15 942.10 903.29
01-03-2020 939.65 950.00 914.25 943.05 904.20
01-04-2020 945.25 989.50 930.15 972.15 932.10
01-05-2020 972.15 1080.00 972.15 1069.72 1025.66
01-06-2020 1058.00 1078.50 1004.55 1054.22 1017.25
01-07-2020 1054.18 1110.00 1031.63 1089.75 1051.53
01-08-2020 1081.40 1087.50 1029.13 1030.60 994.46
01-09-2020 1034.70 1039.47 955.10 1003.03 967.85
01-10-2020 1004.90 1026.10 942.50 955.88 922.35
01-11-2020 965.00 1068.78 948.00 1064.22 1026.90
01-12-2020 1065.50 1079.70 1016.00 1060.85 1023.65
01-01-2021 1063.82 1083.25 1011.00 1039.97 1003.50
01-02-2021 1039.97 1077.50 1036.60 1038.78 1002.34
01-03-2021 1043.13 1164.03 1035.00 1159.45 1118.79
01-04-2021 1162.63 1166.00 1115.50 1158.72 1118.09
01-05-2021 1158.72 1232.50 1135.80 1212.68 1170.15
01-06-2021 1213.50 1247.25 1201.50 1221.88 1179.02
01-07-2021 1228.00 1251.65 1111.53 1125.82 1093.09
01-08-2021 1114.55 1144.50 1069.80 1113.97 1081.59
01-09-2021 1113.97 1282.70 1084.00 1227.45 1194.42

40
01-10-2021 1231.50 1263.90 1181.15 1230.35 1197.24
01-11-2021 1239.00 1287.00 1227.60 1274.95 1240.64
01-12-2021 1273.95 1305.50 1234.20 1272.10 1237.86
01-01-2022 1276.10 1304.85 1211.75 1226.30 1193.30
01-02-2022 1220.00 1259.90 1170.10 1177.65 1145.96
01-03-2022 1200.20 1201.15 738.75 861.90 838.70
01-04-2022 863.85 1019.00 810.00 1001.80 974.84
01-05-2022 1001.80 1001.80 826.10 951.65 926.04
01-06-2022 975.00 1082.60 928.00 1065.85 1037.17
01-07-2022 1065.85 1157.95 1020.05 1032.80 1005.00
01-08-2022 1025.95 1148.80 993.00 1115.85 1085.82
01-09-2022 1128.00 1145.95 1025.00 1078.60 1049.57

01-10-2022 1090.10 1251.00 1090.10 1183.55 1151.70

01-11-2022 1194.35 1464.40 1177.50 1440.85 1402.07
01-12-2022 1440.85 1449.00 1345.00 1436.30 1397.65
01-01-2023 1440.00 1511.65 1342.00 1390.50 1353.08
01-02-2023 1410.25 1641.00 1401.00 1534.40 1493.11
01-03-2023 1564.00 1600.00 1450.25 1493.65 1453.45
01-04-2023 1499.40 1503.65 1353.00 1412.30 1374.29
01-05-2023 1393.00 1520.45 1377.30 1515.85 1475.05
01-06-2023 1520.30 1527.00 1455.00 1497.90 1457.59
01-07-2023 1502.00 1545.35 1404.00 1426.45 1394.07
01-08-2023 1435.00 1583.35 1410.00 1581.40 1545.50
01-09-2023 1575.00 1635.50 1528.95 1594.95 1558.74
01-10-2023 1583.00 1725.00 1560.00 1582.85 1546.92
01-11-2023 1585.00 1622.00 1462.00 1493.55 1459.65
01-12-2023 1495.00 1555.05 1414.10 1479.40 1445.82
01-01-2024 1485.00 1576.65 1435.00 1485.70 1451.97
01-02-2024 1508.50 1539.95 1407.15 1426.25 1393.87
01-03-2024 1426.25 1518.80 1292.00 1470.35 1436.97
01-04-2024 1476.40 1722.10 1322.25 1384.60 1353.17
Standard Deviation 231.35

41
 Figure 4.2: Calculation of Risk of HDFC Bank

HDFC

1800.00
1600.00
1400.00
1200.00
1000.00
800.00
600.00
400.00
200.00
0.00
1 3 5 7 9 11 131517 19 21 232527 29 31 3335 37 39 4143 45 47 49 5153 55 57 5961

Interpretation: The above table and Graph represent Risk of HDFC Bank. The HDFC Bank
has Standard Deviation 231.35 of the highest market value 1558.75 is on 1 st September 2022
and the lowest value is 838.70 on 1st March 2022.

42
Table 4.3: Calculation of Risk of Mahindra & Mahindra

Date Open High Low Close Adj Close

01-04-2019 648.80 681.85 626.50 667.78 630.73
01-05-2019 667.78 724.25 650.00 708.47 669.17
01-06-2019 715.00 729.47 672.55 674.30 636.89
01-07-2019 678.00 711.88 671.50 701.65 662.72
01-08-2019 707.50 716.83 666.50 672.40 641.15
01-09-2019 672.40 675.83 612.00 627.13 597.98
01-10-2019 627.13 696.97 626.38 672.40 641.15
01-11-2019 673.63 722.00 660.05 703.28 670.59
01-12-2019 707.00 785.70 681.72 751.10 716.19
01-01-2020 751.00 775.65 738.85 763.05 727.59
01-02-2020 768.90 802.55 700.40 728.35 694.50
01-03-2020 728.00 752.00 702.45 738.90 704.56
01-04-2020 748.90 878.95 737.20 873.30 832.71
01-05-2020 873.30 933.50 812.25 922.95 880.05
01-06-2020 922.50 927.95 874.10 897.70 855.98
01-07-2020 907.00 941.80 878.65 935.95 892.45
01-08-2020 939.50 993.00 910.05 965.30 927.91
01-09-2020 974.90 977.65 839.55 860.95 827.60
01-10-2020 860.50 864.45 715.00 765.95 736.28
01-11-2020 770.50 807.70 738.10 790.90 760.27
01-12-2020 800.00 814.00 694.00 803.85 772.71
01-01-2021 805.00 805.85 661.60 680.05 653.71
01-02-2021 689.00 715.40 615.60 645.90 620.88
01-03-2021 650.00 704.20 641.00 673.90 647.80
01-04-2021 678.15 695.50 640.00 645.30 620.30
01-05-2021 645.30 683.00 597.20 647.05 621.99
01-06-2021 647.05 662.45 608.00 655.35 629.97
01-07-2021 657.30 675.30 541.75 550.00 528.70
01-08-2021 546.00 563.85 502.55 528.80 515.41
01-09-2021 528.80 602.20 503.15 547.15 533.29

43
01-10-2021 551.00 621.65 536.60 606.45 591.09
01-11-2021 609.00 609.75 528.25 530.55 517.11
01-12-2021 525.00 539.85 502.65 531.55 518.09
01-01-2022 532.90 589.75 519.00 567.15 552.79
01-02-2022 566.00 589.85 453.60 457.05 445.47
01-03-2022 453.55 482.50 245.40 284.95 277.73
01-04-2022 281.00 391.65 265.50 366.65 357.36
01-05-2022 366.65 450.00 341.10 436.35 425.30
01-06-2022 441.85 527.65 441.50 510.70 497.77
01-07-2022 513.75 625.80 494.25 606.45 591.09
01-08-2022 610.00 648.60 594.20 606.90 594.07
01-09-2022 610.00 666.60 567.50 607.90 595.05

01-10-2022 614.70 647.45 586.80 594.00 581.44

01-11-2022 592.00 745.50 589.00 722.00 706.73
01-12-2022 736.40 764.45 660.25 720.60 705.36
01-01-2023 725.00 843.85 723.00 749.60 733.75
01-02-2023 753.00 952.05 741.55 806.40 789.35
01-03-2023 821.00 876.20 783.00 795.25 778.43
01-04-2023 801.50 837.85 738.55 752.55 736.64
01-05-2023 744.90 853.00 731.10 807.95 790.87
01-06-2023 813.00 821.85 762.35 777.70 761.25
01-07-2023 778.00 798.75 724.65 743.10 727.39
01-08-2023 750.00 803.95 744.60 793.30 785.27
01-09-2023 793.30 822.00 729.55 803.05 794.92
01-10-2023 800.00 971.15 787.00 884.25 875.29
01-11-2023 884.25 979.00 828.35 835.50 827.04
01-12-2023 836.00 868.95 797.00 837.15 828.67
01-01-2024 835.00 910.10 822.50 885.80 876.83
01-02-2024 892.00 894.70 780.70 790.85 782.84
01-03-2024 790.805 813.00 671.15 806.55 798.38
01-04-2024 811.00 945.00 807.70 922.10 912.76
Standard Deviation 138.30

44
 Figure 4.3: Calculation of Risk of Mahindra & Mahindra

M&M
1000.00
900.00
800.00
700.00
600.00
500.00
400.00
300.00
200.00
100.00
0.00
1 3 5 7 9 11 131517 19 21 232527 29 31 3335 37 39 4143 45 47 49 5153 55 57 5961

Interpretation: The above table and Graph represent Risk of MAHINDRA AND
MAHINDRA. The has MAHINDRA AND MAHINDRA Standard Deviation 138.30 of the
highest market value is 927.91 on 1st August 2022 and the lowest value is 357.36. on 1st
April 2022.

45
Table 4.4: Calculation of Risk of Cipla

Date Open High Low Close Adj Close

01-04-2019 595.30 603.90 545.40 557.45 542.53
01-05-2019 557.45 572.45 480.20 516.35 502.53
01-06-2019 519.70 558.90 513.05 555.60 540.73
01-07-2019 559.00 579.40 536.05 560.10 545.11
01-08-2019 560.10 594.00 525.45 571.90 558.58
01-09-2019 573.00 600.00 543.35 586.10 572.45
01-10-2019 586.10 635.90 575.50 627.60 612.98
01-11-2019 628.25 663.40 590.00 600.90 586.90
01-12-2019 604.50 623.75 571.65 608.50 594.33
01-01-2020 608.00 631.00 590.00 592.15 578.36
01-02-2020 591.90 635.00 554.20 589.65 575.91
01-03-2020 593.90 593.90 522.90 545.45 532.74
01-04-2020 548.00 609.00 545.90 607.40 593.25
01-05-2020 607.40 621.90 507.20 524.80 512.57
01-06-2020 526.95 622.75 517.15 616.65 602.29
01-07-2020 620.00 648.00 602.15 641.35 626.41
01-08-2020 641.00 677.50 614.50 662.15 646.73
01-09-2020 665.50 678.45 637.20 654.05 641.91
01-10-2020 653.05 663.95 598.65 629.25 617.58
01-11-2020 630.00 631.95 511.75 540.85 530.82
01-12-2020 542.00 549.00 503.00 519.50 509.86
01-01-2021 520.00 524.00 483.75 517.30 507.70
01-02-2021 517.65 558.30 501.20 554.55 544.26
01-03-2021 555.00 555.30 516.20 528.90 519.09
01-04-2021 516.30 575.95 516.30 565.00 554.52
01-05-2021 565.00 586.00 529.60 558.85 548.48
01-06-2021 559.00 575.00 528.65 553.45 543.18
01-07-2021 555.70 566.50 506.00 521.10 511.43
01-08-2021 516.15 527.00 449.20 472.45 466.37
01-09-2021 472.45 482.50 418.00 425.50 420.03

46
01-10-2021 426.90 478.95 389.55 466.85 460.85
01-11-2021 467.30 492.30 435.40 466.70 460.70
01-12-2021 469.60 487.00 444.60 478.20 472.05
01-01-2022 481.00 487.45 442.10 446.90 441.15
01-02-2022 446.50 464.35 398.05 402.10 396.93
01-03-2022 407.00 472.00 355.30 422.85 417.41
01-04-2022 424.90 632.65 410.40 589.60 583.53
01-05-2022 589.60 650.95 565.60 648.15 641.48
01-06-2022 649.00 692.50 616.30 640.25 633.66
01-07-2022 642.60 724.00 621.05 720.15 712.74
01-08-2022 724.00 814.50 701.00 713.55 706.20
01-09-2022 713.55 819.30 704.40 774.70 766.72

01-10-2022 779.80 829.05 742.30 754.50 746.73

01-11-2022 757.50 804.00 706.50 745.60 737.92
01-12-2022 753.00 839.00 746.15 819.95 811.51
01-01-2023 822.80 864.60 796.20 825.90 817.40
01-02-2023 815.00 878.90 776.25 787.05 778.95
01-03-2023 795.00 823.95 738.10 815.10 806.71
01-04-2023 819.50 966.35 806.10 910.35 900.98
01-05-2023 919.10 951.95 869.00 949.35 939.58
01-06-2023 952.00 997.00 931.85 971.90 961.89
01-07-2023 977.20 989.90 872.00 920.05 910.58
01-08-2023 928.30 953.00 886.05 947.80 938.04
01-09-2023 949.00 1005.00 920.00 983.55 978.79
01-10-2023 980.00 996.95 885.25 905.05 900.67
01-11-2023 917.00 998.00 883.00 971.30 966.60
01-12-2023 980.75 986.70 850.00 944.10 939.54
01-01-2024 947.05 950.00 860.00 945.00 940.43
01-02-2024 948.00 977.35 888.15 925.05 920.58
01-03-2024 925.05 1083.00 911.10 1018.05 1013.13
01-04-2024 1023.00 1062.65 946.30 981.20 976.46
Standard Deviation 177.49

47
 Figure 4.4: Calculation of Risk of Cipla

CIPLA
1200.00

1000.00

800.00

600.00

400.00

200.00

0.00
1 3 5 7 9 11 131517 19 21 232527 29 31 3335 37 39 4143 45 47 49 5153 55 57 5961

Interpretation: The above table and Graph represent Risk of CIPLA. The CIPLA has Standard Deviation
177.49 of the highest market value is 1013.13 on 1st March 2023 and the lowest value is 396.93 on February
1st 2022

48
Table 4.5: Calculation of Risk of TCS

Date Open High Low Close Adj Close

01-04-2019 1217.50 1224.50 1126.40 1136.57 1000.72
01-05-2019 1136.57 1318.78 1134.25 1273.30 1121.11
01-06-2019 1265.00 1354.47 1161.55 1181.18 1039.99
01-07-2019 1178.70 1292.40 1162.75 1245.90 1109.24
01-08-2019 1250.00 1274.95 1230.05 1248.18 1114.40
01-09-2019 1240.00 1270.50 1210.75 1217.97 1087.44
01-10-2019 1217.97 1320.00 1212.20 1312.00 1171.39
01-11-2019 1312.00 1388.70 1289.43 1318.50 1180.39
01-12-2019 1317.50 1354.45 1247.18 1350.60 1209.13
01-01-2020 1341.15 1629.53 1310.10 1556.18 1393.17
01-02-2020 1562.00 1595.00 1446.25 1517.53 1361.79
01-03-2020 1524.50 1563.50 1390.78 1424.57 1278.38
01-04-2020 1420.00 1780.00 1420.00 1766.05 1584.81
01-05-2020 1766.05 1837.40 1698.35 1741.05 1562.38
01-06-2020 1754.00 1885.15 1711.15 1847.75 1671.93
01-07-2020 1852.00 2015.00 1841.10 1940.20 1755.58
01-08-2020 1949.95 2092.00 1945.00 2078.40 1884.42
01-09-2020 2084.80 2211.90 2019.15 2183.70 1979.89
01-10-2020 2190.90 2275.95 1784.35 1938.15 1757.26
01-11-2020 1943.65 1997.00 1784.50 1968.25 1788.31
01-12-2020 1984.00 2029.70 1870.25 1893.05 1719.98
01-01-2021 1896.00 2020.75 1808.00 2014.10 1829.97
01-02-2021 2009.50 2097.95 1881.30 1983.45 1805.98
01-03-2021 1995.05 2068.95 1958.05 2001.65 1822.55
01-04-2021 2010.00 2266.95 2007.00 2260.35 2058.11
01-05-2021 2260.35 2260.35 2032.25 2196.55 2000.01
01-06-2021 2201.00 2292.50 2142.10 2227.20 2027.92
01-07-2021 2235.00 2258.80 2060.00 2205.70 2024.60
01-08-2021 2200.00 2282.00 2143.25 2259.60 2078.92
01-09-2021 2259.60 2296.20 1975.00 2099.30 1931.44

49
01-10-2021 2095.95 2284.95 1925.00 2269.65 2088.16
01-11-2021 2264.00 2275.00 2035.05 2053.25 1926.73
01-12-2021 2060.00 2246.70 1984.00 2161.70 2028.50
01-01-2022 2168.00 2260.00 2071.60 2079.05 1950.94
01-02-2022 2079.50 2230.00 1990.00 2000.15 1881.16
01-03-2022 2035.00 2147.75 1506.05 1826.10 1717.47
01-04-2022 1825.90 2032.00 1650.00 2014.45 1908.45
01-05-2022 2014.45 2032.00 1865.20 1972.35 1868.57
01-06-2022 1990.00 2132.00 1981.10 2082.15 1972.59
01-07-2022 2079.70 2358.00 2079.50 2281.40 2167.71
01-08-2022 2290.45 2328.00 2216.45 2257.25 2149.58
01-09-2022 2269.00 2555.00 2241.30 2492.30 2373.41

01-10-2022 2510.00 2885.00 2492.30 2664.85 2537.73

01-11-2022 2660.00 2744.00 2600.05 2679.65 2562.71
01-12-2022 2679.00 2952.00 2624.45 2862.75 2737.82
01-01-2023 2880.00 3339.80 2879.00 3111.35 2975.57
01-02-2023 3100.00 3245.80 2880.00 2894.30 2773.26
01-03-2023 2926.00 3205.00 2901.80 3177.85 3044.95
01-04-2023 3191.10 3354.35 3020.00 3035.65 2908.70
01-05-2023 3024.90 3217.75 3004.00 3159.15 3027.03
01-06-2023 3168.60 3399.65 3115.00 3345.75 3221.51
01-07-2023 3358.00 3374.00 3132.40 3167.45 3049.83
01-08-2023 3180.00 3804.10 3167.00 3786.45 3653.80
01-09-2023 3796.00 3981.75 3707.00 3775.55 3643.28
01-10-2023 3781.75 3989.90 3385.95 3397.75 3278.72
01-11-2023 3437.95 3575.55 3406.45 3529.15 3412.05
01-12-2023 3535.00 3760.00 3510.15 3738.35 3614.31
01-01-2024 3750.00 4043.00 3625.10 3736.25 3612.28
01-02-2024 3770.00 3882.50 3391.10 3554.20 3442.31
01-03-2024 3554.20 3779.50 3431.55 3739.95 3622.21
01-04-2024 3748.00 3835.60 3439.15 3546.70 3435.04
Standard Deviation 787.82

50
 Figure 4.5: Calculation of Risk of TCS

TCS
4000.00

3500.00

3000.00

2500.00

2000.00

1500.00

1000.00

500.00

0.00
1 3 5 7 9 11 13 15 1719 21 23 252729 31 33 3537 39 41 434547 49 51 5355 57 59 61

Interpretation: The above table and Graph represent Risk of TATA Consultancy Service.
The TATA Consultancy Service has Standard Deviation 787.82of the highest market value
is 3622.21 on 1st March 2023 and the lowest value is 1000.72 on 1st April 2019

51
Table 4.6: Calculation of Return of GMR

Date Open High Low Close Adj Close Returns

01-04-2019 16.10 18.65 15.35 17.25 17.25 -0.15
01-05-2019 17.25 17.70 14.20 15.05 15.05 -0.13
01-06-2019 15.25 22.05 14.60 19.65 19.65 0.31
01-07-2019 19.85 20.25 17.20 18.80 18.80 -0.04
01-08-2019 18.95 19.15 15.10 17.20 17.20 -0.09
01-09-2019 17.25 18.55 15.40 16.40 16.40 -0.05
01-10-2019 16.40 19.70 15.40 19.20 19.20 0.17
01-11-2019 19.50 19.85 15.65 18.35 18.35 -0.04
01-12-2019 18.50 22.80 16.30 22.45 22.45 0.22
01-01-2020 22.70 25.05 20.60 21.75 21.75 -0.03
01-02-2020 21.80 23.90 17.20 18.95 18.95 -0.13
01-03-2020 18.90 19.20 16.30 16.85 16.85 -0.11
01-04-2020 17.25 21.40 17.05 20.50 20.50 0.22
01-05-2020 20.50 20.95 16.40 18.15 18.15 -0.11
01-06-2020 17.90 17.90 14.55 15.30 15.30 -0.16
01-07-2020 15.40 19.50 15.15 17.75 17.75 0.16
01-08-2020 17.90 21.25 17.25 21.10 21.10 0.19
01-09-2020 21.05 21.50 15.10 16.20 16.20 -0.23
01-10-2020 16.15 17.55 15.15 16.85 16.85 0.04
01-11-2020 16.85 17.75 15.65 16.10 16.10 -0.04
01-12-2020 16.20 16.65 14.65 16.40 16.40 0.02
01-01-2021 16.50 17.25 15.00 15.20 15.20 -0.07
01-02-2021 15.35 16.65 12.95 16.20 16.20 0.07
01-03-2021 16.25 21.35 16.25 19.80 19.80 0.22
01-04-2021 19.55 19.95 16.45 16.65 16.65 -0.16
01-05-2021 16.65 17.45 14.90 15.50 15.50 -0.07
01-06-2021 15.55 15.70 14.05 14.90 14.90 -0.04
01-07-2021 15.05 16.05 14.30 14.95 14.95 0.00
01-08-2021 14.95 16.20 14.45 15.05 15.05 0.01
01-09-2021 15.05 17.75 14.55 17.00 17.00 0.13

52
01-10-2021 17.10 21.60 16.15 20.75 20.75 0.22
01-11-2021 20.70 22.70 20.15 21.90 21.90 0.06
01-12-2021 21.40 22.05 19.95 21.00 21.00 -0.04
01-01-2022 21.05 25.00 20.75 22.85 22.85 0.09
01-02-2022 22.65 26.50 19.75 20.00 20.00 -0.12
01-03-2022 20.70 21.20 14.10 16.35 16.35 -0.18
01-04-2022 16.25 18.15 15.90 17.10 17.10 0.05
01-05-2022 17.10 20.40 16.30 18.95 18.95 0.11
01-06-2022 19.25 21.95 18.90 20.05 20.05 0.06
01-07-2022 20.15 24.05 19.25 21.75 21.75 0.08
01-08-2022 21.75 28.25 20.60 23.55 23.55 0.08
01-09-2022 23.55 24.65 20.80 23.05 23.05 -0.02

01-10-2022 23.15 24.70 23.10 23.40 23.40 0.02

01-11-2022 23.40 27.25 22.95 26.80 26.80 0.15
01-12-2022 27.00 29.35 23.70 26.50 26.50 -0.01
01-01-2023 26.50 28.30 23.70 23.85 23.85 -0.10
01-02-2023 24.05 27.50 23.50 26.05 26.05 0.09
01-03-2023 26.40 29.95 23.50 24.30 24.30 -0.07
01-04-2023 24.65 25.30 22.50 22.95 22.95 -0.06
01-05-2023 22.65 27.75 22.55 26.05 26.05 0.14
01-06-2023 26.20 33.90 25.45 31.80 31.80 0.22
01-07-2023 32.15 33.15 27.35 28.40 28.40 -0.11
01-08-2023 28.60 29.90 27.35 29.05 29.05 0.02
01-09-2023 29.20 39.40 28.90 38.35 38.35 0.32
01-10-2023 38.30 46.10 37.50 40.55 40.55 0.06
01-11-2023 40.70 43.35 36.25 37.60 37.60 -0.07
01-12-2023 37.75 48.50 37.25 45.75 45.75 0.22
01-01-2024 46.55 49.15 39.00 42.10 42.10 -0.08
01-02-2024 42.80 44.50 33.85 37.90 37.90 -0.10
01-03-2024 37.90 40.85 35.45 36.95 36.95 -0.03
01-04-2024 36.90 41.30 36.40 37.65 37.65 0.02
Average Returns 0.02

53
 Figure 4.6: Calculation of Return of GMR

GMR
0.40

0.30

0.20

0.10

0.00

-0.10

-0.20

-0.30

Interpretation: The above table and Graph represent Returns of GMR. The GMR has an
Average Returns of 0.02

54
Table 4.7: Calculation of Return of TCS

Date Open High Low Close Adj Close Returns

01-04-2019 1217.50 1224.50 1126.40 1136.57 1000.72
01-05-2019 1136.57 1318.78 1134.25 1273.30 1121.11 0.12
01-06-2019 1265.00 1354.47 1161.55 1181.18 1039.99 -0.07
01-07-2019 1178.70 1292.40 1162.75 1245.90 1109.24 0.07
01-08-2019 1250.00 1274.95 1230.05 1248.18 1114.40 0.00
01-09-2019 1240.00 1270.50 1210.75 1217.97 1087.44 -0.02
01-10-2019 1217.97 1320.00 1212.20 1312.00 1171.39 0.08
01-11-2019 1312.00 1388.70 1289.43 1318.50 1180.39 0.01
01-12-2019 1317.50 1354.45 1247.18 1350.60 1209.13 0.02
01-01-2020 1341.15 1629.53 1310.10 1556.18 1393.17 0.15
01-02-2020 1562.00 1595.00 1446.25 1517.53 1361.79 -0.02
01-03-2020 1524.50 1563.50 1390.78 1424.57 1278.38 -0.06
01-04-2020 1420.00 1780.00 1420.00 1766.05 1584.81 0.24
01-05-2020 1766.05 1837.40 1698.35 1741.05 1562.38 -0.01
01-06-2020 1754.00 1885.15 1711.15 1847.75 1671.93 0.07
01-07-2020 1852.00 2015.00 1841.10 1940.20 1755.58 0.05
01-08-2020 1949.95 2092.00 1945.00 2078.40 1884.42 0.07
01-09-2020 2084.80 2211.90 2019.15 2183.70 1979.89 0.05
01-10-2020 2190.90 2275.95 1784.35 1938.15 1757.26 -0.11
01-11-2020 1943.65 1997.00 1784.50 1968.25 1788.31 0.02
01-12-2020 1984.00 2029.70 1870.25 1893.05 1719.98 -0.04
01-01-2021 1896.00 2020.75 1808.00 2014.10 1829.97 0.06
01-02-2021 2009.50 2097.95 1881.30 1983.45 1805.98 -0.01
01-03-2021 1995.05 2068.95 1958.05 2001.65 1822.55 0.01
01-04-2021 2010.00 2266.95 2007.00 2260.35 2058.11 0.13
01-05-2021 2260.35 2260.35 2032.25 2196.55 2000.01 -0.03
01-06-2021 2201.00 2292.50 2142.10 2227.20 2027.92 0.01
01-07-2021 2235.00 2258.80 2060.00 2205.70 2024.60 0.00
01-08-2021 2200.00 2282.00 2143.25 2259.60 2078.92 0.03
01-09-2021 2259.60 2296.20 1975.00 2099.30 1931.44 -0.07

55
01-10-2021 2095.95 2284.95 1925.00 2269.65 2088.16 0.08
01-11-2021 2264.00 2275.00 2035.05 2053.25 1926.73 -0.08
01-12-2021 2060.00 2246.70 1984.00 2161.70 2028.50 0.05
01-01-2022 2168.00 2260.00 2071.60 2079.05 1950.94 -0.04
01-02-2022 2079.50 2230.00 1990.00 2000.15 1881.16 -0.04
01-03-2022 2035.00 2147.75 1506.05 1826.10 1717.47 -0.09
01-04-2022 1825.90 2032.00 1650.00 2014.45 1908.45 0.11
01-05-2022 2014.45 2032.00 1865.20 1972.35 1868.57 -0.02
01-06-2022 1990.00 2132.00 1981.10 2082.15 1972.59 0.06
01-07-2022 2079.70 2358.00 2079.50 2281.40 2167.71 0.10
01-08-2022 2290.45 2328.00 2216.45 2257.25 2149.58 -0.01
01-09-2022 2269.00 2555.00 2241.30 2492.30 2373.41 0.10

01-10-2022 2510.00 2885.00 2492.30 2664.85 2537.73 0.07

01-11-2022 2660.00 2744.00 2600.05 2679.65 2562.71 0.01
01-12-2022 2679.00 2952.00 2624.45 2862.75 2737.82 0.07
01-01-2023 2880.00 3339.80 2879.00 3111.35 2975.57 0.09
01-02-2023 3100.00 3245.80 2880.00 2894.30 2773.26 -0.07
01-03-2023 2926.00 3205.00 2901.80 3177.85 3044.95 0.10
01-04-2023 3191.10 3354.35 3020.00 3035.65 2908.70 -0.04
01-05-2023 3024.90 3217.75 3004.00 3159.15 3027.03 0.04
01-06-2023 3168.60 3399.65 3115.00 3345.75 3221.51 0.06
01-07-2023 3358.00 3374.00 3132.40 3167.45 3049.83 -0.05
01-08-2023 3180.00 3804.10 3167.00 3786.45 3653.80 0.20
01-09-2023 3796.00 3981.75 3707.00 3775.55 3643.28 0.00
01-10-2023 3781.75 3989.90 3385.95 3397.75 3278.72 -0.10
01-11-2023 3437.95 3575.55 3406.45 3529.15 3412.05 0.04
01-12-2023 3535.00 3760.00 3510.15 3738.35 3614.31 0.06
01-01-2024 3750.00 4043.00 3625.10 3736.25 3612.28 0.00
01-02-2024 3770.00 3882.50 3391.10 3554.20 3442.31 -0.05
01-03-2024 3554.20 3779.50 3431.55 3739.95 3622.21 0.05
01-04-2024 3748.00 3835.60 3439.15 3546.70 3435.04 -0.05
Average Returns 0.02

56
 Figure 4.7: Calculation of Return of TCS

TCS
0.30

0.25

0.20

0.15

0.10

0.05

0.00
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
-0.05

-0.10

-0.15

Interpretation: The above table and Graph represent Returns of GMR. The GMR has an
Average Returns of 0.02

57
Table 4.8: Calculation of Return of Cipla

Date Open High Low Close Adj Close Returns

01-04-2019 595.30 603.90 545.40 557.45 542.53
01-05-2019 557.45 572.45 480.20 516.35 502.53 -0.07
01-06-2019 519.70 558.90 513.05 555.60 540.73 0.08
01-07-2019 559.00 579.40 536.05 560.10 545.11 0.01
01-08-2019 560.10 594.00 525.45 571.90 558.58 0.02
01-09-2019 573.00 600.00 543.35 586.10 572.45 0.02
01-10-2019 586.10 635.90 575.50 627.60 612.98 0.07
01-11-2019 628.25 663.40 590.00 600.90 586.90 -0.04
01-12-2019 604.50 623.75 571.65 608.50 594.33 0.01
01-01-2020 608.00 631.00 590.00 592.15 578.36 -0.03
01-02-2020 591.90 635.00 554.20 589.65 575.91 0.00
01-03-2020 593.90 593.90 522.90 545.45 532.74 -0.07
01-04-2020 548.00 609.00 545.90 607.40 593.25 0.11
01-05-2020 607.40 621.90 507.20 524.80 512.57 -0.14
01-06-2020 526.95 622.75 517.15 616.65 602.29 0.18
01-07-2020 620.00 648.00 602.15 641.35 626.41 0.04
01-08-2020 641.00 677.50 614.50 662.15 646.73 0.03
01-09-2020 665.50 678.45 637.20 654.05 641.91 -0.01
01-10-2020 653.05 663.95 598.65 629.25 617.58 -0.04
01-11-2020 630.00 631.95 511.75 540.85 530.82 -0.14
01-12-2020 542.00 549.00 503.00 519.50 509.86 -0.04
01-01-2021 520.00 524.00 483.75 517.30 507.70 0.00
01-02-2021 517.65 558.30 501.20 554.55 544.26 0.07
01-03-2021 555.00 555.30 516.20 528.90 519.09 -0.05
01-04-2021 516.30 575.95 516.30 565.00 554.52 0.07
01-05-2021 565.00 586.00 529.60 558.85 548.48 -0.01
01-06-2021 559.00 575.00 528.65 553.45 543.18 -0.01
01-07-2021 555.70 566.50 506.00 521.10 511.43 -0.06
01-08-2021 516.15 527.00 449.20 472.45 466.37 -0.09
01-09-2021 472.45 482.50 418.00 425.50 420.03 -0.10

58
01-10-2021 426.90 478.95 389.55 466.85 460.85 0.10
01-11-2021 467.30 492.30 435.40 466.70 460.70 0.00
01-12-2021 469.60 487.00 444.60 478.20 472.05 0.02
01-01-2022 481.00 487.45 442.10 446.90 441.15 -0.07
01-02-2022 446.50 464.35 398.05 402.10 396.93 -0.10
01-03-2022 407.00 472.00 355.30 422.85 417.41 0.05
01-04-2022 424.90 632.65 410.40 589.60 583.53 0.40
01-05-2022 589.60 650.95 565.60 648.15 641.48 0.10
01-06-2022 649.00 692.50 616.30 640.25 633.66 -0.01
01-07-2022 642.60 724.00 621.05 720.15 712.74 0.12
01-08-2022 724.00 814.50 701.00 713.55 706.20 -0.01
01-09-2022 713.55 819.30 704.40 774.70 766.72 0.09

01-10-2022 779.80 829.05 742.30 754.50 746.73 -0.03

01-11-2022 757.50 804.00 706.50 745.60 737.92 -0.01
01-12-2022 753.00 839.00 746.15 819.95 811.51 0.10
01-01-2023 822.80 864.60 796.20 825.90 817.40 0.01
01-02-2023 815.00 878.90 776.25 787.05 778.95 -0.05
01-03-2023 795.00 823.95 738.10 815.10 806.71 0.04
01-04-2023 819.50 966.35 806.10 910.35 900.98 0.12
01-05-2023 919.10 951.95 869.00 949.35 939.58 0.04
01-06-2023 952.00 997.00 931.85 971.90 961.89 0.02
01-07-2023 977.20 989.90 872.00 920.05 910.58 -0.05
01-08-2023 928.30 /953.00 886.05 947.80 938.04 0.03
01-09-2023 949.00 1005.00 920.00 983.55 978.79 0.04
01-10-2023 980.00 996.95 885.25 905.05 900.67 -0.08
01-11-2023 917.00 998.00 883.00 971.30 966.60 0.07
01-12-2023 980.75 986.70 850.00 944.10 939.54 -0.03
01-01-2024 947.05 950.00 860.00 945.00 940.43 0.00
01-02-2024 948.00 977.35 888.15 925.05 920.58 -0.02
01-03-2024 925.05 1083.00 911.10 1018.05 1013.13 0.10
01-04-2024 1023.00 1062.65 946.30 981.20 976.46 -0.04
Average Returns 0.78

59
 Figure 4.8: Calculation of Return of Cipla

CIPLA
0.50

0.40

0.30

0.20

0.10

0.00
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
-0.10

-0.20

Interpretation: The above table and Graph represent Returns of GMR. The GMR has an
Average Returns of 0.78

60
Table 4.9: Calculation of Return of Mahindra & Mahindra

Date Open High Low Close Adj Close Returns

01-04-2019 648.80 681.85 626.50 667.78 630.73
01-05-2019 667.78 724.25 650.00 708.47 669.17 0.06
01-06-2019 715.00 729.47 672.55 674.30 636.89 -0.05
01-07-2019 678.00 711.88 671.50 701.65 662.72 0.04
01-08-2019 707.50 716.83 666.50 672.40 641.15 -0.03
01-09-2019 672.40 675.83 612.00 627.13 597.98 -0.07
01-10-2019 627.13 696.97 626.38 672.40 641.15 0.07
01-11-2019 673.63 722.00 660.05 703.28 670.59 0.05
01-12-2019 707.00 785.70 681.72 751.10 716.19 0.07
01-01-2020 751.00 775.65 738.85 763.05 727.59 0.02
01-02-2020 768.90 802.55 700.40 728.35 694.50 -0.05
01-03-2020 728.00 752.00 702.45 738.90 704.56 0.01
01-04-2020 748.90 878.95 737.20 873.30 832.71 0.18
01-05-2020 873.30 933.50 812.25 922.95 880.05 0.06
01-06-2020 922.50 927.95 874.10 897.70 855.98 -0.03
01-07-2020 907.00 941.80 878.65 935.95 892.45 0.04
01-08-2020 939.50 993.00 910.05 965.30 927.91 0.04
01-09-2020 974.90 977.65 839.55 860.95 827.60 -0.11
01-10-2020 860.50 864.45 715.00 765.95 736.28 -0.11
01-11-2020 770.50 807.70 738.10 790.90 760.27 0.03
01-12-2020 800.00 814.00 694.00 803.85 772.71 0.02
01-01-2021 805.00 805.85 661.60 680.05 653.71 -0.15
01-02-2021 689.00 715.40 615.60 645.90 620.88 -0.05
01-03-2021 650.00 704.20 641.00 673.90 647.80 0.04
01-04-2021 678.15 695.50 640.00 645.30 620.30 -0.04
01-05-2021 645.30 683.00 597.20 647.05 621.99 0.00
01-06-2021 647.05 662.45 608.00 655.35 629.97 0.01
01-07-2021 657.30 675.30 541.75 550.00 528.70 -0.16
01-08-2021 546.00 563.85 502.55 528.80 515.41 -0.03
01-09-2021 528.80 602.20 503.15 547.15 533.29 0.03

61
01-10-2021 551.00 621.65 536.60 606.45 591.09 0.11
01-11-2021 609.00 609.75 528.25 530.55 517.11 -0.13
01-12-2021 525.00 539.85 502.65 531.55 518.09 0.00
01-01-2022 532.90 589.75 519.00 567.15 552.79 0.07
01-02-2022 566.00 589.85 453.60 457.05 445.47 -0.19
01-03-2022 453.55 482.50 245.40 284.95 277.73 -0.38
01-04-2022 281.00 391.65 265.50 366.65 357.36 0.29
01-05-2022 366.65 450.00 341.10 436.35 425.30 0.19
01-06-2022 441.85 527.65 441.50 510.70 497.77 0.17
01-07-2022 513.75 625.80 494.25 606.45 591.09 0.19
01-08-2022 610.00 648.60 594.20 606.90 594.07 0.01
01-09-2022 610.00 666.60 567.50 607.90 595.05 0.00

01-10-2022 614.70 647.45 586.80 594.00 581.44 -0.02

01-11-2022 592.00 745.50 589.00 722.00 706.73 0.22
01-12-2022 736.40 764.45 660.25 720.60 705.36 0.00
01-01-2023 725.00 843.85 723.00 749.60 733.75 0.04
01-02-2023 753.00 952.05 741.55 806.40 789.35 0.08
01-03-2023 821.00 876.20 783.00 795.25 778.43 -0.01
01-04-2023 801.50 837.85 738.55 752.55 736.64 -0.05
01-05-2023 744.90 853.00 731.10 807.95 790.87 0.07
01-06-2023 813.00 821.85 762.35 777.70 761.25 -0.04
01-07-2023 778.00 798.75 724.65 743.10 727.39 -0.04
01-08-2023 750.00 803.95 744.60 793.30 785.27 0.08
01-09-2023 793.30 822.00 729.55 803.05 794.92 0.01
01-10-2023 800.00 971.15 787.00 884.25 875.29 0.10
01-11-2023 884.25 979.00 828.35 835.50 827.04 -0.06
01-12-2023 836.00 868.95 797.00 837.15 828.67 0.00
01-01-2024 835.00 910.10 822.50 885.80 876.83 0.06
01-02-2024 892.00 894.70 780.70 790.85 782.84 -0.11
01-03-2024 790.85 813.00 671.15 806.55 798.38 0.02
01-04-2024 811.00 945.00 807.70 922.10 912.76 0.14
Average Returns 0.01

62
 Figure 4.9: Calculation of Return of Mahindra & Mahindra

M&M
0.40

0.30

0.20

0.10

0.00
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
-0.10

-0.20

-0.30

-0.40

-0.50

Interpretation: The above table and Graph represent Returns of GMR. The GMR has an
Average Returns of 0.01

63
Table 4.10: Calculation of Return of HDFC Bank

Date Open High Low Close Adj Close Returns

01-04-2019 723.00 786.97 712.53 773.25 736.50
01-05-2019 773.25 824.00 761.30 818.10 779.22 0.06
01-06-2019 819.50 858.00 810.28 826.03 786.77 0.01
01-07-2019 826.30 899.40 822.50 892.20 855.45 0.09
01-08-2019 890.92 904.58 865.58 888.22 851.63 0.00
01-09-2019 890.50 934.00 869.00 902.85 865.66 0.02
01-10-2019 902.85 939.80 878.92 904.25 867.00 0.00
01-11-2019 907.55 937.75 894.00 926.85 888.67 0.02
01-12-2019 927.45 951.55 899.50 936.20 897.63 0.01
01-01-2020 936.35 1006.75 925.25 1002.85 961.54 0.07
01-02-2020 1003.00 1007.50 918.15 942.10 903.29 -0.06
01-03-2020 939.65 950.00 914.25 943.05 904.20 0.00
01-04-2020 945.25 989.50 930.15 972.15 932.10 0.03
01-05-2020 972.15 1080.00 972.15 1069.72 1025.66 0.10
01-06-2020 1058.00 1078.50 1004.55 1054.22 1017.25 -0.01
01-07-2020 1054.18 1110.00 1031.63 1089.75 1051.53 0.03
01-08-2020 1081.40 1087.50 1029.13 1030.60 994.46 -0.05
01-09-2020 1034.70 1039.47 955.10 1003.03 967.85 -0.03
01-10-2020 1004.90 1026.10 942.50 955.88 922.35 -0.05
01-11-2020 965.00 1068.78 948.00 1064.22 1026.90 0.11
01-12-2020 1065.50 1079.70 1016.00 1060.85 1023.65 0.00
01-01-2021 1063.82 1083.25 1011.00 1039.97 1003.50 -0.02
01-02-2021 1039.97 1077.50 1036.60 1038.78 1002.34 0.00
01-03-2021 1043.13 1164.03 1035.00 1159.45 1118.79 0.12
01-04-2021 1162.63 1166.00 1115.50 1158.72 1118.09 0.00
01-05-2021 1158.72 1232.50 1135.80 1212.68 1170.15 0.05
01-06-2021 1213.50 1247.25 1201.50 1221.88 1179.02 0.01
01-07-2021 1228.00 1251.65 1111.53 1125.82 1093.09 -0.07
01-08-2021 1114.55 1144.50 1069.80 1113.97 1081.59 -0.01
01-09-2021 1113.97 1282.70 1084.00 1227.45 1194.42 0.10

64
01-10-2021 1231.50 1263.90 1181.15 1230.35 1197.24 0.00
01-11-2021 1239.00 1287.00 1227.60 1274.95 1240.64 0.04
01-12-2021 1273.95 1305.50 1234.20 1272.10 1237.86 0.00
01-01-2022 1276.10 1304.85 1211.75 1226.30 1193.30 -0.04
01-02-2022 1220.00 1259.90 1170.10 1177.65 1145.96 -0.04
01-03-2022 1200.20 1201.15 738.75 861.90 838.70 -0.27
01-04-2022 863.85 1019.00 810.00 1001.80 974.84 0.16
01-05-2022 1001.80 1001.80 826.10 951.65 926.04 -0.05
01-06-2022 975.00 1082.60 928.00 1065.85 1037.17 0.12
01-07-2022 1065.85 1157.95 1020.05 1032.80 1005.00 -0.03
01-08-2022 1025.95 1148.80 993.00 1115.85 1085.82 0.08
01-09-2022 1128.00 1145.95 1025.00 1078.60 1049.57 -0.03

01-10-2022 1090.10 1251.00 1090.10 1183.55 1151.70 0.10

01-11-2022 1194.35 1464.40 1177.50 1440.85 1402.07 0.22
01-12-2022 1440.85 1449.00 1345.00 1436.30 1397.65 0.00
01-01-2023 1440.00 1511.65 1342.00 1390.50 1353.08 -0.03
01-02-2023 1410.25 1641.00 1401.00 1534.40 1493.11 0.10
01-03-2023 1564.00 1600.00 1450.25 1493.65 1453.45 -0.03
01-04-2023 1499.40 1503.65 1353.00 1412.30 1374.29 -0.05
01-05-2023 1393.00 1520.45 1377.30 1515.85 1475.05 0.07
01-06-2023 1520.30 1527.00 1455.00 1497.90 1457.59 -0.01
01-07-2023 1502.00 1545.35 1404.00 1426.45 1394.07 -0.04
01-08-2023 1435.00 1583.35 1410.00 1581.40 1545.50 0.11
01-09-2023 1575.00 1635.50 1528.95 1594.95 1558.74 0.01
01-10-2023 1583.00 1725.00 1560.00 1582.85 1546.92 -0.01
01-11-2023 1585.00 1622.00 1462.00 1493.55 1459.65 -0.06
01-12-2023 1495.00 1555.05 1414.10 1479.40 1445.82 -0.01
01-01-2024 1485.00 1576.65 1435.00 1485.70 1451.97 0.00
01-02-2024 1508.50 1539.95 1407.15 1426.25 1393.87 -0.04
01-03-2024 1426.25 1518.80 1292.00 1470.35 1436.97 0.03
01-04-2024 1476.40 1722.10 1322.25 1384.60 1353.17 -0.06
Average Returns 0.01

65
 Graph 4.10: Calculation of Return of HDFC Bank

HDFC
0.30

0.20

0.10

0.00
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61

-0.10

-0.20

-0.30

Interpretation: The above table and Graph represent Returns of HDFC. The HDFC has an
Average Returns of 0.01

66
 5.1 FINDINGS

RISK ANALYSIS (Standard Deviation and Price Volatility)

Standard deviation is used to measure stock price volatility — the higher the standard
deviation, the riskier the investment (i.e., the price fluctuates more).

1. GMR Infratech

• Standard Deviation: 7.76 (Low)

• Highest Price: ₹45.75 (1st Dec 2022)
• Lowest Price: ₹14.90 (1st Jun 2020)
• Interpretation:
GMR has a low standard deviation, indicating lower price volatility. Though the price
moved significantly from ₹14.90 to ₹45.75, the relatively low SD suggests that daily or
monthly price swings are not drastic.

2. HDFC Bank

• Standard Deviation: 231.35 (Moderate-High)

• Highest Price: ₹1558.75 (1st Sep 2022)
• Lowest Price: ₹838.70 (1st Mar 2021)
• Interpretation:
A standard deviation of 231.35 is high, reflecting substantial price fluctuations. As a
major private-sector bank, HDFC’s volatility could be due to interest rate policy
changes, financial results, or macroeconomic news.

3. Mahindra & Mahindra

• Standard Deviation: 138.30 (Moderate)

67
 • Highest Price: ₹927.91 (1st Aug 2022)
• Lowest Price: ₹357.36 (1st Apr 2021)
• Interpretation:
A standard deviation of 138.30 indicates moderate risk. The company operates in
cyclical sectors like automobiles and agriculture equipment, which often see seasonal
and economic-cycle-based volatility.

4. CIPLA

• Standard Deviation: 177.49 (Moderate-High)

• Highest Price: ₹1013.13 (1st Mar 2023)
• Lowest Price: ₹396.93 (1st Feb 2021)
• Interpretation:
Cipla’s SD is relatively high for a pharma stock. It suggests significant price
movement, potentially due to regulatory approvals, R&D news, or global health crises
(e.g., COVID-related drug approvals).

5. TATA Consultancy Services (TCS)

• Standard Deviation: 787.82 (Very High)

• Highest Price: ₹3622.21 (1st Mar 2023)
• Lowest Price: ₹1000.72 (1st Apr 2017)
• Interpretation:
With the highest standard deviation among the five, TCS’s price has shown very large
fluctuations over the years. As a major IT exporter, exchange rate movements, global
IT demand, and tech disruptions influence its volatility.

RETURN ANALYSIS (Average Return)

68
Average returns represent the expected return per period (daily/monthly/yearly depending
on data). However, your data seems inconsistent (multiple returns for GMR, and only HDFC
has a unique return).

Let’s clean that up and interpret it properly.

1. GMR Infratech

• Given Values: 0.02, 0.78, 0.01 (likely in different periods)

• Assumption: Final average return = 0.02 or 2% per period
• Interpretation:
GMR shows moderate returns, but given its low SD, it may be more suited for
conservative investors with a higher risk-adjusted return (Sharpe Ratio could be
favorable).

2. HDFC Bank

• Average Return: 0.01 (or 1% per period)

• Interpretation:
Return is modest but considering the bank’s strong fundamentals, it's likely considered
a safe and steady investment by institutional investors.

3. Mahindra & Mahindra

• Return not explicitly mentioned

• Estimation (based on price growth):
From ₹357.36 (Apr 2021) to ₹927.91 (Aug 2022) = ~160% growth in ~1.3 years
=> Approx Annual Return ≈ 90–100%
• Interpretation:
Very strong returns during the observed period; the stock may have benefitted from
post-COVID recovery and increased rural demand.

69
4. CIPLA

• Return not mentioned

• Price moved from ₹396.93 to ₹1013.13 in 2 years => ~155% return
=> Approx Annual Return ≈ 60–70%
• Interpretation:
High returns from a traditionally stable sector suggest growth due to specific catalysts,
like COVID drug production or exports.

5. TCS

• Return not mentioned

• From ₹1000.72 (Apr 2017) to ₹3622.21 (Mar 2023) = ~260% in ~6 years
=> Approx Annual Return ≈ 22–25%
• Interpretation:
A solid long-term performer, especially attractive to investors seeking stable returns
with some level of volatility.

📊 Comparative Summary Table

Company Std Dev Return Risk Return Investment Type

(Risk) (Approx) Category Category
GMR 7.76 2% Low Low Conservative/Stable
Infratech Growth
HDFC Bank 231.35 1% Moderate- Low Moderate/Steady
High
Mahindra & 138.30 ~90-100% Moderate High Growth/Value
Mahindra Annually
Cipla 177.49 ~60-70% Moderate- High Pharma Growth
Annually High
TCS 787.82 ~22-25% Very High Moderate- Long-term Tech
Annually High Investment

70
CORRELATION

1. TCS & GMR Infra: 0.84

• Interpretation: Strong positive correlation.

When TCS stock prices increase, GMR Infra's prices also tend to increase and vice
versa.
• Implication: Not ideal for diversification in a portfolio — they tend to move together.

🔹 2. TCS & Cipla: 0.86

• Interpretation: Very strong positive correlation.

Both stocks are responding similarly to broader market or macroeconomic factors.
• Implication: Their prices likely rise and fall in tandem — not good for hedging
purposes.

🔹 3. TCS & Mahindra & Mahindra: 0.39

• Interpretation: Weak positive correlation.

They do show some similar price movements, but many times, their trends may diverge.
• Implication: Better for diversification than the above two — adding both in a portfolio
reduces overall risk.

🔹 4. TCS & HDFC Bank: 0.93

• Interpretation: Extremely strong correlation.

Both are blue-chip, large-cap, index-heavy stocks, often influenced by the same
macroeconomic trends.
• Implication: Not recommended to hold both for risk reduction — they behave very
similarly.

71
🔹 5. GMR Infra & Cipla: 0.77

• Interpretation: Strong positive correlation.

Surprisingly high for an infrastructure and pharma pair — possibly due to external
market-wide influences (like COVID recovery, FII flows).
• Implication: Limited diversification benefit if both are held together.

🔹 6. GMR Infra & Mahindra & Mahindra: 0.48

• Interpretation: Moderate positive correlation.

There is some relationship in their price movements — possibly due to infrastructure
and automotive sector linkages (e.g., rural infrastructure & tractor demand).
• Implication: Offers moderate diversification benefit.

🔹 7. GMR Infra & HDFC Bank: 0.84

• Interpretation: Strong positive correlation.

Despite different sectors, both may be influenced by capital investment cycles and
economic growth factors.
• Implication: Holding both may not significantly reduce portfolio volatility.

🔹 8. Cipla & Mahindra & Mahindra: 0.58

• Interpretation: Moderate positive correlation.

While Cipla is pharma and M&M is auto/agriculture, both can be influenced by
domestic consumption and rural sector dynamics.
• Implication: Offers better diversification than highly correlated pairs.

72
🔹 9. Cipla & HDFC Bank: 0.74

• Interpretation: Strong correlation.

May reflect their presence in Nifty/Sensex and influence from macroeconomic and FII
flows.
• Implication: Moderate diversification; some synchronized movement.

🔹 10. Mahindra & Mahindra & HDFC Bank: 0.38

• Interpretation: Weak correlation.

A good mix in a portfolio — since their price movements are less related, they help
spread risk.
• Implication: Ideal pairing for diversification among the list.

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5.2 SUGGESTIONS

A well-structured portfolio diversification strategy is crucial for minimizing risk while

aiming for optimal returns. Based on the correlation data, investors should avoid pairing
highly correlated stocks such as TCS and HDFC Bank (0.93), TCS and Cipla (0.86), and
GMR Infra and HDFC Bank (0.84), as these combinations provide limited diversification
benefits. Instead, it is advisable to include stocks with lower correlation in the portfolio,
such as Mahindra & Mahindra and HDFC Bank (0.38), or TCS and Mahindra & Mahindra
(0.39), as these combinations help in reducing overall portfolio risk. In terms of risk
management, TCS and HDFC Bank exhibit high volatility with standard deviations of
787.82 and 231.35 respectively, indicating a higher risk level. Although GMR Infra
shows a low standard deviation of 7.76, this may be misleading due to its lower price
range rather than actual market stability. Hence, a balanced mix of high- and low-
volatility stocks is recommended to achieve a risk-adjusted portfolio.

From a return perspective, while there is some inconsistency in the data for GMR Infra’s
average return (reported as 0.02, 0.78, and 0.01), assuming the highest figure of 0.78 is
accurate, GMR presents a high return potential, albeit with higher speculative risk. The
other stocks—TCS, Cipla, HDFC Bank, and Mahindra & Mahindra—show moderate
average returns around 0.01, indicating stable, long-term growth potential. Therefore, for
investors with a high-risk appetite, including GMR Infra may be beneficial for
maximizing returns, whereas conservative investors may prefer Mahindra & Mahindra
and Cipla, which offer moderate risk and reliable performance. Additionally, the portfolio
benefits from a well-balanced sectoral spread across IT (TCS), Pharmaceuticals (Cipla),
Infrastructure (GMR Infra), Automobile/Agro (Mahindra & Mahindra), and Banking
(HDFC Bank). This sectoral diversification serves as a hedge against economic cycles,
ensuring that downturns in one industry are offset by stability or growth in others, thereby
strengthening the overall portfolio resilience.

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 5.3 CONCLUSION

The portfolio consists of five diverse stocks, each with unique characteristics contributing
differently to risk and return. TCS is a high-risk, high-priced stock that shows very strong
correlation with most other stocks, making it a solid growth option but less effective for
diversification. GMR Infra, despite its low absolute risk due to a lower price base, shows
potential for high returns, though it should be approached cautiously because of its smaller
market cap and speculative nature. Cipla offers moderate risk and stable returns, positioning it
as a reliable defensive stock within the healthcare sector, with moderate correlations that make
it a safe addition to most portfolios. Mahindra & Mahindra stands out for its moderate standard
deviation and the lowest correlation with high-risk stocks like HDFC Bank and TCS, making
it an ideal choice for reducing overall portfolio risk through diversification. Finally, HDFC
Bank, while displaying high volatility, offers stable long-term performance and is best
balanced with low-correlation stocks such as Mahindra to mitigate risk and stabilize the
portfolio.

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 3. The Wall Street Journal

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