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CHAPTER-I

INTRODUCTION AND RESEARCH DESIGN OF THE STUDY

The London Stock exchange was the world first stock exchange. It was formed in 1773. In

the course of time, France followed the example of London and soon after Germany and America

came into the field. Indian stock markets are one of the oldest in Asia. Its history dates back to

nearly 200 years ago. Trade in securities took place even in the eighteenth century. At the time

dealings in securities were not regulated by any code or rules and no hours to transact business

were prescribed. By 1830’s business on corporate stocks and shares in Bank and Cotton presses

took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen

brokers recognized by banks and merchants during 1840 and 1850.

The 1850’s witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United state of Europe was

stopped. The ‘Share Mania’ in India begun. The number of brokers increased to about 200 to

250.However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs,2850 could only be sold at Rs,87)

At the end of the America Civil War, the brokers Who thrived out of Civil War in 1874,

found a place in a street (now appropriately called as Dalal Street) where they would

conveniently assemble and transact business. In 1887, they formally established in Bombay, the

“Native share and Stock Broker’s Association” which is alternatively known as “The Stock

Exchange”. During the Second World War boom, a number of stock exchanges came into being

in different part of the country. Their number increased from 7 to 21 within the period ranging

from 1939 to 1945. But most of them were closed soon. Twenty one Stock Exchange have been

so far by the Government under the Act. Of them permanent recognition has been given only to

Bombay Stock Exchange.

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Indian Capital Market – An Overview:

Capital market is the market for the mobilization of long-term funds. It refers to “allfacilities and institutional arrangements for borrowing and lending term funds”.Capital market

is concerned with rising of money capital for the purpose of investments.

The Indian capital market can be broadly classified into gilt-edged market and industrial

securities market. Gilt-edged market deals with government and non-governmental securities

backed by RBI whereas; the industrial capital market deals with shares and debentures of old

and new companies. The industrial securities market can be further classified into primary and

secondary market. Primary market is concerned with the issues of shares, preferred stock,

debentures of non-governmental public Ltd. Companies and also raising fresh capital by public

sector units through bonds. Secondary market is concerned with the trading of old or already

issued securities.

These securities are traded in an organized market called as stock exchange. Stock

exchange means “no body of individuals, whether incorporated of not, constituted for the

purpose of regulations or controlling the business of buying, selling or dealing in securities.

Before independence, the capital market was not developed due to poor industrial

growth. Only very few companies existed, and hence the number of securities traded was

smaller. There were only few individual investors who belonged to affluent class. Moreover,

there were no specialized issue houses and no intermediaries to mobilize and channelize the

savings.

But after the independence, the capital market has broadened significantly and has been

steadily improving. The government has also taken a number of steps to promote savings and to

protect the interest of the investors. In the last three decades, the capital market has seen

tremendous development, which includes the following:

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• Development of Stock Exchange

• Development of specialized financial institutions

• Regulations of the capital market (SEBI)

• New financial intermediaries• Adoption of screen based trading

• Arrival of Foreign Institutional investors.

• Enlivening of debt market.

Stock Exchange:

The stock exchange or secondary market is a highly organized market for the purchase

and sale of second hand quoted of listed securities.

The securities contract (Regulation) Act 1956 defines a stock exchange as “an

association, organization or not, established for the purpose of assisting, regulating and

controlling business in buying, selling and dealing in securities.

Of all the modern service institutions, stock exchange plays a crucial agents and

facilitators of entrepreneurial progress. After the industrial resolution, as the size of the business

enterprises grew, it was no longer possible for individual person or even partnerships to raise

such huge amount for undertaking these ventures. Such huge requirements of capital can be met

only large number of individuals.

These investors could be expected to participate actively only if investment is liquid or

they could sell a part of their stake whenever they wish to generate cash. This liquidity can be

achieved through shares and debentures representing smallest units of ownership and lendingrepresented by the public. The institution where these securities are traded is known as stock

exchange. This stock exchange is one of the most important institutions in the capital market.

3



Bombay Stock Exchange (BSE):

The oldest exchange in Asia and the first exchange in the country to be granted

permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock

Exchange Limited (BSE) have had an interesting rise to prominence over the past 130 years.

The BSE is now synonymous with Dalal Street, it wasn’t always so. In fact the first

venues of the earliest stock broker meetings in the 1850s were amidst rather natural

environs- under banyan trees – in front of the Town Hall, where Horniman circle is now

situated. A decade later, the brokers moved their venue to another set of foliage, this time

under banyan trees at the junction of Meadows Street and Mahatma Gandhi Road. As the

number of brokers increased, they had to shift from place to place, and wherever they went,

through sheer habit, they overflowed into the streets. At last, in 1874, found a permanent

place, and one that they could, quite literally, call their own. The new place was, aptly,

called Dalal street.

The journey of BSE is as eventful and interesting as the history of India’s securities

market. India’s biggest bourse, in terms of listed companies and market capitalization, BSE

has played a pioneering role in the Indian Securities Market- one of the oldest in the world.

Much before actual legislations were enacted, BSE had formulated comprehensive set of

Rules and Regulations for the Indian Capital Markets. It also laid down best practices

adopted by the Indian Capital Markets after India gained its independence. Perhaps, there

would not be any leading corporate in Indian, which has not sourced BSE’s services in

resource mobilization. BSE as a brand is synonymous with capital markets in India. The

BSE SENSEX is the benchmark equity index that reflects the robustness of the economy

and finance. At par with international standards, BSE has been a pioneer in several areas. It

has several firsts to its credit even in an intensely competitive environment.

First in India to introduce Equity Derivatives First in India to launch a Free Float Index

First in India to launch US$ version of BSE Sensex first in India to launch surveillance,

clearing & settlement ‘BSE On- Line Trading System’ (BOLT) has been awarded the

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globally recognized the Information Security Management System standard BS7799-

2:2002. First to have an exclusive for financial training moved from open outcry to

Electronic Trading within just 50 days.

An equally important accomplishment of BSE is the launch of a nationwide investor

awareness campaign-safe investing in the stock market- under which nationwide awareness

campaigns and dissemination of information through print and electronic medium was

undertaken. BSE also actively promoted the securities market awareness campaign of the

securities and exchange board of India.

In 2002, the name the stock exchange, Mumbai, was changed to BSE. BSE had

introduced securities trading in India, replaced its open ourcry system of trading in 1995,

when the totally automated trading through the BSE online trading (BOLT) system was put

into practice. The BOLT network was expanded, nationwide, in 1997. It was at the BSE’s

international convention hall that india’s 1st Bell ringing ceremony in the history of capital

markets was held on February 18th, 2002. It was the listing ceremony of Bharti Tele ventures

Ltd. BSE with its long history of capital market development is fully geared to continue its

contributions to further growth of the securities markets of the country, thus helping India

increase its sphere of influence in international financial markets.

National Stock Exchange (NSE):

The National Stock Exchange of India Limited has genesis in the report of the high

powered study group on establishment of New Stock Exchanges, which recommended

promotion of a National Stock Exchange by financial institutions (FIs) to provide access to

investors from all across the country on an equal footing. Based on the recommendations.

NSE was promoted by leading Financial Institutions at the behest of the government of

India and was incorporated in November 1992 as a tax-paying company unlike other

exchange in the country.

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On its recognition as a stock exchange under the Securities Contracts (Regulation) Act,

1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM)

segment in June 1994. The Capital Market (Equities) segment commenced in June 2000.

Trading on NSE is characterized by four key innovations.

• The physical floor was replaced by anonymous, computerized order-matching with

strict prime-time priority.

• The limitations of India’s public telecom network were avoided by using satellite

communications. Now NSE has a network of over 2000 satellite terminals all over

the country. On a typical day almost over 3500 traders login to the trading computer

over this network. This is lager than the capacity of the largest trading floors in the

world.

• Brokers do not own NSE. It is a limited liability company and brokers or

franchisees. Therefore NSE staff is free of pressures from brokers and is able to

perform its regulatory and enforcement functions more effectively.

Stock Market Index

The Sensex is an “index”. An index is basically an indicator. It gives a general

idea about whether most of the stocks have gone up or most of the stocks have gone down.The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator

of all the major companies of the NSE. If the Sensex goes up, it means that the prices of the

stocks of most of the major companies on the BSE have gone up. If Sensex goes down, this

tells that the stock price of most of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks

of the NSE. Besides Sensex and the Nifty there are many other Indexs. There is an index

that gives an idea about whether the mid-cap stocks go up and down. This is called the

“BSE mid-cap Index”. There is index for the metal stocks, for the FMCG stocks, for

automobile stocks etc.

6



Dematerialization:

The final point of transaction is where the title on a security is changed from the seller to

the buyer. Since share certificates in India were printed on paper, trading in them was

fraught with operational cost and risk. Theft or counterfeiting the share certificate gave rise

to a number of criminal activities. To tackle this problem national securities depository

limited (NSDL) was setup in November 1996. Setting up the central depository services

(India) Limited (CDSL) followed this.

The depository maintains a computer record of ownership of securities and dispenses

with physical share certificates. This cut down the hazards related with physical trading in

share certificates and also reduces the transaction costs substantially.

This form of trading is being extended in phases and more and more companies are

being brought under it. Demat trading in more than 200 scripts is compulsory nowadays.

The progress in dematerialization is also indicated by a dramatic rise in the proposition

of Demat shares in the total delivery value of NSE.

7



RESEARCH DESIGN OF THE STUDY

Statement Of The Problem

The growth and operations of stock exchanges largely influences the economic growth of thenation. The stock market trading determines the share prices which influences equity investment

decision. Further more it is influenced by various economic, political and other factors. In this

content, the researcher is interested to study about share price movements and fluctuations at

JRG securities ltd, Namakkal.

Objectives Of The Study

To analyze the volatility of stock price fluctuation in Bombay Stock Exchange.

.

To analyze the reasons for fluctuations in share price.

To study the impact of volatility of share prices on Indian economy.

To offer suggestions based on the study.

Sources Of Data

The study uses only the secondary data. The secondary data have been collected from the

website of Bombay Stock Exchange chart.

Period Of Study

The relevant secondary data have been collected for a period of 4 months, from September

2007 to December 2007.

Tools Employed For Analysis

The data was analyzed using various tools

Paired sample t test

Mean

Standard deviation

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Limitation Of Study

Every study has its own limitation and this study is not an exception to it. The

following are some of the limitations.

The period of study is limited to 4 months.

Only 29 companies are considered for the study.

Chapter Scheme

The study is presented in following chapters

1. Chapter I – Introduction and Research Design of the study.

2. Chapter II- Profile of the Company.

3. Chapter III- Analysis and Interpretation.

4. Chapter IV- Findings, Suggestions and Conclusion.

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CHAPTER II

COMPANY PROFILE

JRG is a premier brokerage house in India on the fast growth track. JRG started

functioning in the stock market in 1992. Over the years, the company has grown from strength

to strength to become a major player in India's financial services sector.

Today JRG is a listed company in the Bombay Stock Exchange. JRG is one of the

foremost brokerage houses, being a member of various exchanges in the capital and commodity

markets and the insurance sector. JRG is a member of the National Stock Exchange of India

(NSE), the Bombay Stock Exchange, the National Multi Commodity Exchange of India Ltd

(NMCEIL), the National Commodities Derivatives Exchange Ltd (NCDEX), the Multi

Commodity Exchange of India Ltd (MCX) and the Indian Pepper and Spices Trades

Association (IPSTA). JRG is a full-fledged depository participant of the National Securities

Depository Ltd and Central Depository Services (India) Limited.

In April 2006, JRG Securities Limited, the flagship company of JRG Group, came out

with a Rs 14.50 crore public issue of 36,25,000 equity shares with a face value of Rs 10 at a

premium of Rs 30 per share.

In July 2007, Baring India Private Equity Fund II Ltd (Baring India) announced an

investment of upto $35 million in JRG Securities Ltd. through a preferential issue and warrants

for a minimum 44.8 per cent stake in the company, subject to the approvals from Securities and

Exchange Board of India and shareholders among others.

Post the allotment, Baring India Partners will become the single largest share holder in

the company.

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Vision

JRG Securities Limited was born out of a vision to explore the immense investment

opportunities in the Indian financial market, to benefit the investors. The company is built on

the pillars of financial expertise, professionalism, exemplary ethics and a commitment to

provide ultimate customer satisfaction.

JRG constantly strives to meet the changing market needs and trends.

JRG began as a sub-brokerage house in the year 1992. Our financial expertise and

professionalism coupled with ethics and a commitment has made JRG one of the major players

in Indian financial market.

The company caters efficiently to the diverse and complex needs of over 200,000

customers, most of whom are individual traders, institutions and money managers.

The vision of the JRG Group is to be a Financial Super Market. It aims to provide all

types of financial services to its clients at one place to save them from going from place to place

to meet their investment needs.

With the opening up of the Indian economy and the advent of IT enabled trading, the

Indian capital market has become a whole new ball game. From floor trading, the custom is fast

shifting to Internet trading. Equally fast is the role of the financial service provider, which is

being redefined. Earlier, a financial service provider's responsibility was limited to executing

customer's instructions to buy and sell. Now, the whole operational paradigm has progressively

shifted with the opening of more and more avenues to offer strategic customer supports.

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The guiding principles that lead us:

1. Serve the clients with the highest level of responsiveness and integrity.2. Place the client's interests and protection of their investments as the top priorities.

3. Operate on predefined and constantly updated service standards. Be customer driven,

rather than deal driven.

4. Adopt futuristic technology to gather vital information on real time basis to optimize

investor protection and investor returns.

Set up most modern trading facilities for its clients at par with global standards.

Group Of Companies

From a modest beginning a decade back, JRG is today a power to reckon with in the financial

services industry through the following JRG Group of Companies:

• JRG Securities Ltd

• JRG Wealth Management Ltd

• JRG Insurance Broking Pvt Ltd

• JRG Metal & Commodities DMCC, Dubai

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JRG Board of Directors

The JRG Board is constituted by independent professionals. Its Board of Directors comprises

veterans from the fields of banking, stock broking and other financial services. Their experience

and expertise have helped the company become a premier broking house in the country.

• T M Venkataraman – Chairman

• Regi Jaocb - Managing Director

• Giby Mathew - Executive Director

• Rahul Bhasin – Director

• Munish Dayal – Director

• S K K Nair – Director

13



ORGANISATON CHART

14



CHAPTER III

Chairman

Managing Director Executive Director

Directors

HR Finance Mutual Fund Insurance Clearing

Department Heads

State Heads/Marketing Heads

Territory Heads

Branch Manager

Dealers

Legal&Compliance

15



ANALYSIS AND INTERPRETATION

The data collected was analyzed using appropriate statistical techniques. Significantly,

the trading days opening and closing values are compared with each other using Paired Sample

T–Test. The following table’s present company wise comparison between the opening and

closing price of the stock for the month of September, October and November.

For the purpose study, the opening and closing price of 30 companies (that company that

are consider for calculating SENSEX) for the period of 4 months (September 2007-December

2007) are obtained.

The data collected was analyses using “Paired Sample T-Test”. This is tested at 5%significant level. The trading days opening and closing values are compared with each other

using Paired Sample T–Test

Tool Employed for Price Movement and Fluctuation

The following is the tool used for analyzing the Price Movement and Fluctuation

Paired Sample T-Test

T-Test is based on t -distribution and is considered an appropriate test for judging the

significance of a sample mean or for judging the significance of difference between the means

of two samples in case of small sample(s) when population variance is not known (in which

case we use variance of the sample as an estimate of the population variance). In case two

samples are related, we use paired t -test for judging the significance of the mean of difference

between the two related samples. It can also be used for judging the significance of the

coefficients of simple and partial correlations. The relevant test statistic, t, is calculated from the

sample data and then compared with its probable value based on t-distribution (to be read from

the table that gives probable values of t for different levels of significance for different degrees

of freedom) at a specified level of significance for concerning degrees of freedom for accepting

16



or rejecting the null hypothesis. It may be noted that t -test applies only in case of small

sample(s) when population variance is unknown

The equation for the Paired Sample T-Test:

t = d √ n

S

where d = the mean of the differences.

S = the standard deviation of the differences.

The value of S is calculated as follows:

S= √ ∑d2 – (d)2- n

n-1

n-1 = degree of freedom.

List of companies whose share price are taken for the study

• ACC

• Bajaj Auto

• BHARTI TELEVENTURES

• Bharat Heavy Electronical Ltd

• CIPLA LTD

• DLF

• GRASIM

• Gujarat Ambuja Cement

• Housing Development Of Financial Corporation

• HDFC BANK

• Hindalco

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• Hindustan Lever

• ICICI BANK

• Infosys Technologies

• ITC LTD• Larsen & Toubro

• Mahindra & Mahindra

• Maruthi Udyog

• National Thermal Power (NTPC)

• ONGC

• Ranbaxy Lab

• Reliance

• Reliance Communications

• Reliance Energy

• State Bank Of India

• Tata Consultancy Services

• WIPRO LTD

• TATA Steel

• TATA Motors

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Null Hypothesis (H0): There is no significant difference between opening and closing Share

prices.

Alternative Hypothesis (H1): There is significant difference between opening and closing share

price

Table No: 1

T-Test for Stock Price ACC

MONTHMean Std. Deviation

T value Sig.

September open1132.16 41.96

1.341 .000close 1127.13 37.95

October open1142.61 90.62

0.222 .000close 1139.73 91.18

November open1067.88 36.93

1.309 .000close 1061.68 34.28

December open1063.28 31.79

2.481 .000close

1051.24 34.75

Significant value < 0.05 = H1 Accepted; Significant value > 0.05 = H0 Accepted

It is found from the above table that the opening and closing value of the stocks of

ACC is the significantly different for September, October, November and December. It means

the opening price of the stocks of ACC is different from that of the closing is price

The Standard Deviation for the month of October is very high. It is indicate there

is greater fluctuation in share price.

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prices.


price

Table No: 2

T-Test for Stock Price Bajaj Auto


T value Sig.


0.4 0close 2422.58 91.99


0.688 0.001close 2530.1 60.42


-0.301 0close 2469.81 129.12


-0.995 0.644close

3993.05 5620.19


It is found from the above table that the opening and closing value of the stocks

of Bajaj Auto is the significantly different for September, October, and November. Whereas for

the month of December, it is significantly not different. It means the opening price of the stocks

of is different from that of the closing price for the month of September, October and November

and the same for December.

The Standard Deviation for the month of December is very high. It is indicate

there is greater fluctuation in share price.

20




prices.


price

Table No: 3

T-Test for Stock Price Bharathi Televentures


T value Sig.


0.4 0close 882.66 50.43


0.688 0.023close 975.11 199.11


-0.301 0.651close 902.24 31.2


-0.995 0close 955.67 41.14



of Barathi is the significantly different for September, October, and December. Whereas for the

month of November, it is significantly not different. It means the opening price of the stocks of

is different from that of the closing price for the month of September, October and December

and the same for November.



21




prices.


price

Table No: 4

T-Test for Stock Price BHEL


T value Sig.


0.4 0.725close 1941.57 51.76


0.688 0.001close 2349.71 305.82


-0.301 0close 2702.96 104.33

December open 2626.76 139.55

-0.995 0close 2603.01 143.93



BHEL is the significantly different for October, November and December. Whereas for the

month of September, it is significantly not different. It means the opening price of the stocks of

is different from that of the closing price for the month of October, November and December

and the same for September.

The Standard Deviation for the month of September is very high. It is indicate


22




prices.


price

Table No: 5

T-Test for Stock Price CIPLA LTD


T value Sig.


0.4 0close 175.24 6.25


0.688 0.008close 186.09 4.94

November open- -

-0.301 -close - -


-0.995 0close 207.48 19.15



of CIPLA is the significantly different for September, October, November and December. It

means the opening price of the stocks of is different from that of the closing price for the monthof September, October, November and December.



23




prices.


price

Table No: 6

T-Test for Stock Price DLF


T value Sig.


-1.322 0close 685.3 61.53


-0.408 0close 878.02 46.24


1.397 0.002close 906.85 31.31


-0.374 0close 997.22 43.47



DLF is the significantly different for September, October, November and December. It means

the opening price of the stocks of is different from that of the closing price for the month of September, October, November and December.



24




prices.


price

Table No: 7

T-Test for Stock Price GRASIM


T value Sig.


-2.503 0close 3283.57 169.21


-0.47 0.002close 3661.8 104.71


-0.162 0.022close 3675.91 95.16


1.039 0close 3672.58 86.72



GRASIM is the significantly different for September, October, November and December. It

means the opening price of the stocks of is different from that of the closing price for the monthof September, October, November and December.



25






prices.


price

Table No: 9

T-Test for Stock Price HDFC


T value Sig.


-3.657 0close 2258.83 166.81

October open2458 499.41

-0.941 0.489close 2555.12 108.68


0.05 0close 2643.04 75.77


0.661 0.001close 2880.67 120.45



of HDFC is the significantly different for September, November and December. Whereas for

the month of October, it is significantly not different. It means the opening price of the stocksof is different from that of the closing price for the month of September, November and

December and the same for October.



27




prices.


price

Table No: 10

T-Test for Stock Price HDFC BANK


T value Sig.


-1.315 0close 1273.04 96.02


-0.557 0close 1470.55 86.03


-0.039 0.006close 1639.16 72.61


0.532 0.007close 1712.34 37.67


It is found from the above table that the opening and closing value of the

stocks of HDFC BANK is the significantly different for September, October, November and

December. It means the opening price of the stocks of is different from that of the closing price

for the month of September, October, November and December.



28




prices.


price

Table No: 11

T-Test for Stock Price HINDALCO


T value Sig.


0.518 0close 159.78 5.73


-0.547 0close 182.72 11.01


1.122 0close 194.87 10.71


-0.25 0close 202.4 8.42



of HINDALCO is the significantly different for September, October, November and December.

It means the opening price of the stocks of is different from that of the closing price for themonth of September, October, November and December.

The Standard Deviation for the month of October is very high. It is indicate here is

greater fluctuation in share price.


prices.

29




price

Table No: 12

T-Test for Stock Price Hindustan Lever


T value Sig.


0.551 0.429close 42.58 1.35

October open 38.45 3.18

-0.203 0close 38.53 2.66


-0.498 0.009close 40.91 1.99


-137.2 0.095close 159.26 4.1



of Hindustan Lever is the significantly different for October, and November. Whereas for the

month of September and December, it is significantly not different. It means the opening price

of the stocks of is different from that of the closing price for the month of October, November

and the same for September and December The Standard Deviation for the month of December is very high. It is indicate



prices.

30




price

Table No: 13

T-Test for Stock Price ICICI BANK


T value Sig.


-1.518 0close 950.57 57.94


-1.066 0close 1112.52 81.74


0.854 0close 1191.52 62.24


0.942 0close 1211.46 50.1



is the significantly different for September, October, November and December. It means the

opening price of the stocks of is different from that of the closing price for the month of

September, October, November and December.

The Standard Deviation for the month of December is very high. It is indicatethere is greater fluctuation in share price.


prices.

31




price

Table No: 14

T-Test for Stock Price Infosys Technologies


T value Sig.


0.714 0close 1846.66 46.2


1.003 0close 1920.3 76.11


2.398 0close 1664.47 115.67


-4.77 0close 1698.64 75.56





September, October, November and December

The Standard Deviation for the month of November is very high. It is indicatethere is greater fluctuation in share price.


prices.

32




price

Table No: 15

T-Test for Stock Price ITC LTD


T value Sig.


0.184 0close 182.34 6.25


1.108 0.005close 182.5 4.26


0.269 0close 182.67 9.89


-0.176 0close 197.02 7.84



of ITC Ltd is the significantly different for September, October, November and December. It

means the opening price of the stocks of is different from that of the closing price for the month

of September, October, November and December.

The Standard Deviation for the month of November is very high. It is indicate



prices.

33




price

Table No: 16

T-Test for Stock Price Larsen & Toubro


T value Sig.


-0.504 0close 2683.47 118.86


-2.028 0close 3424.5 480.43


1.559 0close 4232.8 157.77


1.072 0close 4171.88 103.64





September, October, November and December and the same for September.




prices.

34




price

Table No: 17

T-Test for Stock Price Mahindra & Mahindra


T value Sig.


0.63 0close 729.94 29.04


0.185 0close 771.38 30.39


1.615 0.003close 730.16 18.4


0.273 0close 799.67 30.81



of Mahaindra & Mahindra is the significantly different for September, October, November and


for the month of September, October, November and December

The Standard Deviation for the month of October is very high. It is indicate thereis greater fluctuation in share price.


prices.

35




price

Table No: 18

T-Test for Stock Price Maruthi Udyog


T value Sig.


-1.01 0close 913.06 49.59


-0.658 0close 1097.77 61.01


1.438 0.001close 994.69 32.95


1.568 0close 1024.36 28.43



of Maruthi Udyog is the significantly different for September, October, November and


for the month of September, October, November and December

The Standard Deviation for the month of October is very high. It is indicate there isgreater fluctuation in share price.


prices.

36




price

Table No: 19

T-Test for Stock Price National Thermal Power (NTPC)


T value Sig.


-0.725 0.009close 189.96 5.79


-0.523 0close 220.09 10.84


0.364 0close 245.69 15.26


0.831 0.002close 241.3 7.49


It is found from the above table that the opening and closing value of the

stocks of NTPC is the significantly different for September, October, November and December.

It means the opening price of the stocks of is different from that of the closing price for the

month of September, October, November and December



prices.

37




price

Table No: 20

T-Test for Stock Price ONGC


T value Sig.


-0.255 0.009close 880.51 55.9


-1.016 0.048close 1627 2552.73


1.4 0close 1224.34 63.81


0.638 0.002close 1209.87 33.74





September, October, November and December



prices.

38




price

Table No: 21

T-Test for Stock Price RANBAXY LAB


T value Sig.


-0.575 0close 415.33 10.47


0.917 0.068close 427.16 8.09


2.252 0close 413.9 18.87


0.452 0close 408.33 10.09



of RANBAXY is the significantly different for September, November and December. Whereas

for the month of October, it is significantly not different. It means the opening price of the

stocks of is different from that of the closing price for the month of September, November and

December and the same for October.The Standard Deviation for the month of November is very high. It is indicate



prices.

39




price

Table No: 22

T-Test for Stock Price Reliance


T value Sig.


-1.066 0close 2123.19 158.27


-1.239 0close 2585.45 136.7


0.442 0.177close 2774.78 78.44


0.327 0.011close 2842.82 66.8



of RELIANCE is the significantly different for September, October and December. Whereas

for the month of November, it is significantly not different. It means the opening price of the

stocks of is different from that of the closing price for the month of September October, and

December November and the same for November.The Standard Deviation for the month of September is very high. It is indicate



prices.

40




price

Table No: 23

T-Test for Stock Price Reliance Communications


T value Sig.


-0.44 0close 560.61 24.61


-1.611 0close 721.6 51.6


3.236 0close 711.34 36.19


0.57 0.002close 731.51 18.44



of RCOM is the significantly different for September, October, November and December. It

means the opening price of the stocks of is different from that of the closing price for the month

of September, October, November and December.



prices.

41




price

Table No: 24

T-Test for Stock Price Reliance Energy


T value Sig.


-2.288 0close 961.23 142.9


-0.444 0close 1605.61 173.06


1.334 0.013close 1787.79 76.83


-0.863 0close 1976.88 124.62



of RELIACE ENERGY is the significantly different for September, October, November and


for the month of September October, November and December



prices.

42




price

Table No: 25

T-Test for Stock Price State Bank Of India


T value Sig.


-0.619 0close 1722.45 112.92


0.585 0close 1896.44 121.01


0.225 0.012close 2248.58 62.96


0.448 0.001close 2368.45 56.18



of SBI is the significantly different for September, October, November and December. It means

the opening price of the stocks of is different from that of the closing price for the month of




prices.

43




price

Table No: 26

T-Test for Stock Price Tata Consultancy Services


T value Sig.


1.227 0close 1035.68 29.07


1.141 0.491close 1028.12 199.57


1.632 0.005close 985.6 23.18


0.427 0.003close 1050.97 29.09



of TCS is the significantly different for September, November and December. Whereas for the

month of October, it is significantly not different. . It means the opening price of the stocks of

is different from that of the closing price for the month of September, November and December

and the same for October.The Standard Deviation for the month of December is very high. It is indicate



prices.

44




price

Table No: 27

T-Test for Stock Price Wipro Ltd


T value Sig.

September open 459.50 13.91

2.025 .056

close 455.98 13.32

October open 485.84 16.706.52 .00

close 475.18 15.92

November open 444.97 91.45

-.87 .39

close 461.30 17.69


-.765 .454

close 506.26 19.19



WIPRO is the same during September, November and December whereas different for the

month of October. It means the opening price of the stocks of Wipro is different from that of

the closing is price



prices.

45




price

Table No: 28

T-Test for Stock Price Tata Steel


T value Sig.


.174 0.864

close 730.15 47.83


1.33 0.198

close 875.58 48.61


1.33 0.198

close 845.18 24.33


-.356 0.726

close 865.44 38.68



Tata Steel is the same during September, October, November and December. It means the

opening price of the stocks of Tata Steel is same as that of the closing price.




prices.

46




price

Table No: 29

T-Test for Stock Price Tata Motors


T value Sig.


.011 .992

close 718.14 28.46

October open 792.36 20.65.491 .628

close 790.01 21.61


1.609 .123

close 712.55 18.91

December open 746.63 24.49.883 .388

close 743.38 26.25



Tata Motors to is the same during September, October, November and December. It means the

opening price of the stocks of Tata Motors is same as that of the closing price.



CHAPTER IV

47



FINDINGS, SUGGESTIONS & CONCLUSION

Findings

• ACC : The opening and closing price are found significantly different due to opening

price is high and the closing price is low for the month of September, October,

November, December.

• BAJAJ AUTO: The opening and closing value of the stocks are found significantly

different for September, October, and November. Whereas for the month of December,

it is significantly not different.

• BARATHI : The opening and closing value of the stocks of Barathi is the significantly

different for September, October, and December. Whereas for the month of November,


• BHEL: The opening and closing value of the stocks of BHEL is the significantly

different for October, November and December. Whereas for the month of September,


• CIPLA: The opening and closing value of the stocks of CIPLA is the significantly

different for September, October, November and December.

• DLF: The opening and closing value of the stocks of DLF is the significantly different

for September, October, November and December.

• GRASIM : The opening and closing value of the stocks of GRASIM is the significantly

different for September, October, November and December.

48





• MARUTH UDI : The opening and closing value of the stocks of MARUTHI is the

significantly different for September, October, November and December.

• NATIONAL THERMAL POWER (NTPC): The opening and closing value of the

stocks of NTPC is the significantly different for September, October, November and

December.

• ONGC : The opening and closing value of the stocks is the significantly different for


• RANBAXY : The opening and closing value of the stocks of RANBAXY is the

significantly different for September, November and December. Whereas for the month

of October, it is significantly not different.

• RELIANCE : The opening and closing value of the stocks of RELIANCE is the

significantly different for September, October and December. Whereas for the month of

November, it is significantly not different.

• RELIANCE COMMUNICATION : The opening and closing value of the stocks of

RCOM is the significantly different for September, October, November and December.

• RELIANCE ENERY: The opening and closing value of the stocks of RELIACE

ENERGY is the significantly different for September, October, November and

December.

• STATE BANK OF INDIA: The opening and closing value of the stocks of SBI is thesignificantly different for September, October, November and December.

50





Suggestions

• The company can provide separate system for doing technical and fundamental analysis,

which helps to take stock investments decisions.

• SEBI will have to protect the interests of the investor in securities. Because people

depend upon share brokers, jobbers etc. Many of them are weak speculators and

frequently put their clients into difficulties. They create violent price fluctuation.

• Since stock market is highly sensitive to various uncontrollable national and

international factors, SEBI and regulatory bodies must frame guidelines and regulations

from time to time bring stabilization in stock market activities.

52



CONCLUSION

At the most fundamental level, supply and demand in the market determines stock

price. There are many types of techniques and methods that investors use to figure out whether

a stock price will go up or down. Stock prices changes every day because of market forces.

Share prices experience volatility. The extent of volatility varies across companies, business

events and market cycles. The extent of the volatility can range from a little to a lot. Time

intervals for substantial price changes may be daily, between days and over longer periods.

Volatility is an insight to the risk of share price fluctuation. It is a factor in the balancing of risk

and reward. The analysis shows the share price fluctuations of the companies that are

considered for calculating SENSEX. This forms a basis for the investors to take investment

decision in shares. Further researches can be conducted in the areas like investor’s likes &

dislike of share investment, factors influencing share price movement and so on.

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