Empirical study of on effect of corporate announcement on stock nehaviour

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A
RESEARCH REPORT
ON
“ AN EMPERICAL STUDY ON EFFECT OF CORPORATE
ANNOUNCEMENT ON STOCK BEHAVIOUR”
Submitted to
Maharishi Markandeshwar Institute of Management
For the
Partial Fulfillment of the Degree of Bachelors of Business Administration
(2012-2015)
SUPERVISED BY, SUBMITTEDBY
Dr. xxxxxxxxxxxxx xxxxxxxxxxxxxx
Asstt. professor Roll No. xxxxxxx
BBA 6th
semester
MAHARISHI MARKANDESHWAR INSTITUTE OF MANAGEMENT
MAHARISHI MARKANDESHWAR UNIVERSITY,MULLANA,AMBALA.

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DECLARATION
I, xxxxxxxx Roll no- xxxxxx, BACHELORS IN BUSINES ADMINISTRATION
(semester-6th), Maharishi Markandeshwar University, Mullana, Haryana. I, hereby
declare the research project entitled entitled “ AN EMPIRICAL STUDY ON
EFFECT OF CORPORATE ANNOUNCEMENT ON STOCK
BEHAVIOUR” is an original work and data provided in the study is best
authentic to the best of my knowledge.
The same has not been submitted to any other institution for the awards of other
degree.
(xxxxxxxx)
Maharishi Markandeshwar University.

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PREFACE
In the present situation where stock market is going up and down, it is necessary to
invest consciously in the market whatever it is, this is the study about the last two
year fluctuation in stock market which enables the investor in taking decision
regarding investment. This study tells the factor which directly or indirectly affects
the market and some basic information not only share market but also other market
such as derivatives or commodity market for the new investors or the students who
have some interest in stock market. The objective of selecting the topic is to know
about the market trends of the stock market and the information related to the
investment for the future investor. The study of fluctuations of stock market makes
the investor aquatinted with the factor affecting the investment and Stock prices
can be volatile and some analysts argue that this volatility is excessive. This is not
easy to prove, since it is difficult to assess certainty about future earnings and
dividends. Companies tend to smooth dividends, so they will be less volatile than
stock prices. Volatile stock prices do not have a major impact on consumption and
capital spending since there is a good chance that price movements in one direction
may be reversed
xxxxxxxxxxxx

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ACKNOWLEDEGEMENT
“Acknowledgement isanart ,one can write glibstanzaswithout meaninga word
ontheotherhandonecanmakeasimpleexpressionofgratitude“.
First of all I thank Lord for his abundant blessings throughout the study. I take an
opportunity to express my gratitude to all of them who is some or other way helped
me to accomplish this challenging project. No amount of written expression is
sufficient to show my deepest sense of gratitude to them.
I am extremely thankful to our training coordinator Dr. Dharamveer Narwal for
their valuable guidance and supporton completion of this project in its presently.
I also acknowledge with deep sense of reverence, my gratitude towards my parents
and members of my family who has always supported me morally as well as
economically.
At last but not the least I would like to thank all my friends who directly or
indirectly helped me to complete this project.

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Executive Summary
tock Returns can provide insight into the structure of the financial market.
It is generally believed that the relationship between stock return and Market
return can provide an insight into the structure of capital market. The main objectives
of study to ascertain the Stock Return changes in the Bombay Stock Exchange. Second
the correlation between Stock Returns and Market Returns. Pricing of stock is an issue
heavily discussed in the areas of finance, economics, and accounting. Generally it is
known that pricing react to the arrival of new information. Investors in the stock
markets frequently revise their expected prices of stocks depending on the flow of
information relating to the returns.
The current study is on Stock Returns of Sensex 20 Companies and Market Returns,
calculated for Weekly, Monthly, Quarterly, Half Yearly, and Annual Period from closing
prices of 20 companies in the Bombay Stock Exchange.
S

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CONTENTS
SL.No TITLES PAGE NO
01
Chapter-1
1) INTRODUCTION 1-15
02 Chapter -2
REVIEW OF LITERATURE
16-17
03
Chapter-3
RESEARCH METHODOLOGY
2) OBJECTIVES OF THE STUDY
3) SCOPE OF THE STUDY
4) METHODOLOGY
5) LIMITATIONS OF THE STUDY
18-22
04 Chapter-4
ANALYSIS AND INTERPREATION
23-55
05
Chapter-5
FINDINGS AND CONCLUSION
57-58
06 BIBILOGRAPHY 59-60

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INTRODUCTION
Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is
Asia's first & fastest Stock Exchange with the speed of 200 micro seconds and one
of India's leading exchange groups. Over the past 140 years, BSE has facilitated
the growth of the Indian corporate sector by providing it an efficient capital-raising
platform. Popularly known as BSE, the bourse was established as "The Native
Share & Stock Brokers' Association" in 1875. BSE is a corporatized and
demutualised entity, with a broad shareholder-base which includes two leading
global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners.
BSE provides an efficient and transparent market for trading in equity, debt
instruments, derivatives, mutual funds. It also has a platform for trading in equities
of small- and- medium enterprises (SME).
More than 5500 companies are listed on BSE making it world's No. 1 exchange in
terms of listed members. The companies listed on BSE command a total market
capitalization of USD 1.68 Trillion as of March 2015. It is also one of the world's
leading exchanges ( 5th largest in March 2015) for Index options trading (Source:
World Federation of Exchanges).
BSE also provides a host of other services to capital market participants including
risk management, clearing, settlement, market data services and education. It has a
global reach with customers around the world and a nation-wide presence. BSE
systems and processes are designed to safeguard market integrity, drive the growth
of the Indian capital market and stimulate innovation and competition across all
market segments. BSE is the first exchange in India and second in the world to
obtain an ISO 9001:2000 certification. It is also the first Exchange in the country

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and second in the world to receive Information Security Management System
Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT). It
operates one of the most respected capital market educational institutes in the
country (the BSE Institute Ltd.). BSE also provides depository services through its
Central Depository Services Ltd. (CDSL) arm.
BSE's popular equity index - the S&P BSE SENSEX - is India's most widely
tracked stock market benchmark index. It is traded internationally on the EUREX
as well as leading exchanges of the BRCS nations (Brazil, Russia, China and South
Africa).
BSE has won several awards and recognitions that acknowledge the work done and
progress made like India Innovation Award for the Big Data implementation ,
ICICI Lombard & ET Now Risk Management BFSI Company 2013, SKOCH
Order of Merit Certificate was awarded to BSE for E -Boss for qualifying amongst
India's Best 2013, The Golden Peacock Global CSR Award for its initiatives in
Corporate Social Responsibility, NASSCOM - CNBC-TV18's IT User Awards,
2010 in Financial Services category, Skoch Virtual Corporation 2010 Award in the
BSE StAR MF category and Responsibility Award (CSR) by the World Council of
Corporate Governance. Its recent milestones include the launching of
BRICSMART indices derivatives, BSE-SME Exchange platform, S&P BSE
GREENEX to promote investments in Green India.

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Apart from maintaining BSE SENSEX, the Bombay Stock Exchange also
maintains some other stock indices like:
 SENSEX
 MIDCAP
 SMLCAP
 BSE-100
 BSE-200
 BSE-500
VISION:-
"Emerge as the premier Indian stockexchange with best-in-class global practice in
technology, products innovation and customer service."
HERITAGE:-
BSE Ltd, the first ever stock exchange in Asia established in 1875 and the first in
the country to be granted permanent recognition under the Securities Contract
Regulation Act, 1956, has had an interesting rise to prominence over the past 140
years.
While BSE Ltd is now synonymous with Dalal Street, it was not always so. The
first venue of the earliest stock broker meetings in the 1850s was in 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 what is

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now called Mahatma Gandhi Road. As the number of brokers increased, they had
to shift from place to place, but they always overflowed to the streets. At last, in
1874, the brokers found a permanent place, and one that they could, quite literally,
call their own. The new place was, aptly, called Dalal Street (Brokers' Street).
The journey of BSE Ltd. is as eventful and interesting as the history of India's
securities market. In fact, as India's biggest bourse in terms of listed companies and
market capitalisation, almost every leading corporate in India has sourced BSE
Ltd. services in raising capital and is listed with BSE Ltd.
Even in terms of an orderly growth, much before the actual legislations were
enacted, BSE Ltd. had formulated a comprehensive set of Rules and Regulations
for the securities market. It had also laid down best practices which were adopted
subsequently by 23 stock exchanges which were set up after India gained its
independence.
BSE Ltd., as a institutional brand, has been and is synonymous with the capital
market in India. Its S&P BSE SENSEX is the benchmark equity index that reflects
the health of the Indian economy.

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BRAND IDENTITY:-
Bombay Stock Exchange has now adopted only its initials as the new name (BSE),
positioning itself better position as a national multi-asset financial infrastructure
institution. BSE’s strategic shift in approach, attitude and business focus is
reflected in its new tag line - Experience the New.
With renewed zeal and focus on new business opportunities, product and service
innovation, upgrades in technology, increased investor and member focus, BSE is
always pushing the envelope on all fronts. The ambition is to continually improve
and adopt new and better ways of conducting our business.

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As the first stock exchange in Asia and the pioneer of securities transaction
business, BSE prides itself on being at the forefront of bringing innovations to the
Indian capital markets while creating diverse investment opportunities for the
investor community in India throughout its long history.
BSE continues to undertake several initiatives to build on its strong brand, legacy
and market position to create value for its stakeholders and the financial system.
MILESTONES:-
In its 140-year glorious history, BSE has crossed several milestones and been a
driver of several key initiatives and developments in the Indian capital market.
ACHEVEMENTS:-
At par with international standards, BSE Ltd. has been a pioneer in several areas over the
decades and has many firsts and key achievements to its credit. BSE is the first
exchange in India to
 Launch a special platform for trading in SME securities
 Introduce Equity Derivatives
 Launch a Free Float Index - S&P BSE SENSEX
 Launch Exchange Enabled Internet Trading Platform
 Obtain ISO certification for a stockexchange
 Exclusive facility for financial training – BSE Institute Ltd.
 Launch its website in Hindi and regional languages
 Host the popular opening-bell ceremony in Indian capital markets
 Launch mobile-based trading in India in Sept 2010

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 Become securities market infrastructure member of SWIFT in India and
provide corporateactions to custodians in ISO 15022 format
 Launched S&P BSE SENSEX Realized S&P BSE Volatility (REALVOL)
Index in Nov 2010
Besides the above, BSE has taken large strides in product and service
innovation for the benefit of its members and investors, notable ones being
 Launch of a reporting platform for corporate bonds
 Launch of the S&P BSE IPO index and S&P BSE PSU website
 Revamp of its website with wide range of new investor-friendly features
 Launch of trading in S&P BSE SENSEX futures on EUREX and leading
exchanges of the BRICS nation bloc
 Launched Smart Order Routing for members and investors
 Introduced SACT (SMS alert & Complaint Tracking system)
 Launched co-location facility at BSE premises in November 2010
 Reduction in membership fees to Rs. 10 lakh for new memberships to promote
financial access and inclusion
 Launch of web-based mutual fund trading platform for investors
Awards & Recognitions:-
As a pioneering financial institution in the Indian capital market, BSE has won
several awards and recognitions that acknowledge the work done and progress
made.
 India Innovation Award for Big Data Implementation
 ICICI Lombard & ET Now Risk Manager Award in BFSI Category
 SKOCH Order of Merit for E-Boss for qualifying among India’s Best 2013
 Indian Merchant Chamber Award in the Large Enterprise Category for use of
Information Technology

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 Best Managed Financial Derivatives Exchange in the Asia Pacific by the The
Asian Banker
 The Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility
 BSE has won NASSCOM - CNBC-TV18’s IT User Awards, 2010 in Financial
Services category
 BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF
category
 Responsibility Award (CSR), by the World Council of Corporate Governance
 Annual Reports and Accounts of BSE have been awarded the ICAI awards for
excellence in financial reporting for four consecutive years from 2006 onwards
 Human Resource Management at BSE has won the Asia - Pacific HRM awards
for its efforts in employer branding through talent management at work, health
management at work and excellence in HR through technology
CSR (CorporateSocial Responsibility)
Corporate Social Responsibility (CSR) in BSE is aligned with its tradition of
creating wealth in the community with a three pronged focus on Education, Health
and the Environment. Besides funding charitable causes for the elderly and the
physically challenged, BSE has been supporting the rehabilitation and restoration
efforts in earthquake-hit communities of Gujarat. BSE has been awarded the
Golden Peacock Global - CSR Award for its initiatives in Corporate Social
Responsibility (CSR)by the World Council of Corporate Governance.

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2.2 Functions of BSE
i. Ideal Meeting Place: It provides an ideal and convenient platform for
meeting of both the parties ready to invest and parties with profitable
projects.
ii. Mobilization of Savings: It provides an ample opportunities for the
investors, both individuals and institutions to invest their surplus funds into
various financial instruments and thus directs the flow of savings towards
the deficit units.
iii. Safety to investors: It provides adequate safety to the investors from fraud
and manipulation caused due to activities of speculators, member, brokers
etc, under the Securities Contract (Regulation) Act 1956.
iv. New Securities Market: It helps in the distribution of new securities by
providing a good platform for the companies to sell their securities.
v. Ready Market: It provides continuous, ready, open, broad market for
securities.
vi. Liquidity: It is possible for the investors to sell their securities at the best
quoted price and thus, convert their investment into cash almost
immediately and without much effort.
vii. Capital Formation: It provides an arrangement for the collection of
savings, in terms of investments in securities and channelizes such savings
to the industries as capital.
viii. Price Determination: It helps to determine the current market price of the
securities by the means of demand and supply, free cash flow etc associated
with the securities.

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ix. Economic Barometer: The price movement of the securities in BSE,
determines the level of savings and investment activities in India, thus,
indicating the state of health of the economy of the nation.
x. Seasoning of Securities: The temporarily holding of stock by players such
as underwriters, dealers, brokers and speculators etc is called seasoning of
securities. This helps in better absorption of market for new issues.
xi. Business Information: The business information supplied by the corporate
entities is allowed to be exchanged between the investors and the issuers by
the BSE.
xii. Investor Education: BSE provides the various information to the investors
about the principles and advantages of investing in securities, which helps
in designing their own portfolio.
xiii. Regulation: The requirement of listing on BSE, makes it possible for the
BSE to rein in on the corporateenterprises.
Settlement
CompulsoryRollingSettlement
All transactions in all groups of securities in the Equity segment and Fixed
Income securities listed on BSE are required to be settled on T+2 basis
(w.e.f. from April 1, 2003). The settlement calendar, which indicates the dates of
the various settlement related activities, is drawn by BSE in advance and is
circulated among the market participants.
Under rolling settlements, the trades done on a particular day are settled after a
given number of business days. A T+2 settlement cycle means that the final
settlement of transactions doneon T, i.e., trade day by exchange of monies and

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securities between the buyers and sellers respectively takes place on second
business day (excluding Saturdays, Sundays, bankand Exchangetrading
holidays) after the trade day.
The transactions in securities of companies which have made arrangements for
dematerialization of their securities are settled only in demat mode on T+2 on
net basis, i.e., buy and sell positions of a member-broker in the same scrip are
netted and the net quantity and value is required to be settled.
However, transactions in securities of companies, which are in "Z" group or
have been placed under "trade-to-trade" by BSE as a surveillance measure
("T" group) , are settled only on a gross basis and the facility of netting of buy
and sell transactions in such scrips is not available.
The transactions in 'F' group securities representing "Fixed Income Securities"
and " G" group representing Government Securities for retail investors are also
settled at BSE on T+2 basis.
In case of Rolling Settlements, pay-in and pay-out of both funds and securities is
completed on the same day.
Members are required to make payment for securities sold and/ or deliver
securities purchased to their clients within one working day (excluding Saturday,
Sunday, bank & BSE trading holidays) after the pay-out of the funds and
securities for the concerned settlement is completed by BSE. This is the
timeframe permitted to the Members to settle their funds/ securities obligations
with their clients as per the Byelaws of BSE.

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 The Annual Reports and Accounts of BSE for the year ended March 31, 2006
and March 31, 2007 have been awarded the ICAI awards for excellence in
financial reporting.
 The Human Resource Management at BSE has won the Asia - Pacific HRM
awards for its efforts in employer branding through talent management at work,
health management at work and excellence in HR through technology
Board Composition
Sl No Name Designation
Other
Designation Held
1 Mr. S. RAMADORAI Chairman
Vice chairman
TCS. Ltd
2 Mr. SUDHAKAR RAO Public Interest Director IAS
3 Dr. SANJIV MISRA Public Interest Director IAS
4 Mr. ANDREAS PREUSS Shareholder Director
Deputy CEO
Deutsche Borse AG
5 Mr. KEKI M. MISTRY Shareholder Director
Vice-Chairman &
CEO HDFC Ltd.
6 Mr. UTTAM BAGRI
Trading Member
Director
Designated Dir,
BCB Brokerage
Private Ltd.
7 Ms. DEENA A. MEHTA
Trading Member
Director
Designated Dir,
Asit C Mehta
Investment
Intermediates Ltd.
8 Mr. ANIL M. SHAH
Trading Member
Director
Designated Dir
Span Caplease
Private Ltd.

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BSE 30
 ACC Ltd. Cement and cement products
 Ambuja Cements Ltd. Cement and Cement Products
 Bajaj Auto Ltd. Automobiles - 2 and 3 Wheelers
 Bharat Heavy Electricals Ltd. Electrical Equipment
 Bharti Airtel Ltd. Telecommunication - Services
 Cipla Ltd. Pharmaceuticals
 DLF Ltd. Developers/Construction
 Grasim Industries Ltd. Diversified
 Housing Development Finance Corporation Ltd. Finance - Housing
 HDFC Bank Ltd. Banks
 Hindalco Industries Ltd. Aluminium
 Hindustan Unilever Ltd. FMCG
 ICICI Bank Ltd. Banks
 Infosys Technologies Ltd. Information Technology
 ITC Ltd. FMCG
 Larsen & Toubro Ltd. Engineering
 Mahindra & Mahindra Ltd. Automobiles - 4 wheelers
 Maruti Udyog Ltd. Automobiles - 4 wheelers
 NTPC Ltd. Power
 Oil & Natural Gas Corporation Ltd. Oil Exploration/Production
 Ranbaxy Laboratories Ltd. Pharmaceuticals
 Reliance Communications Limited Telecom
 Reliance Energy Ltd. Power
 Reliance Industries Ltd. Refineries
 Satyam Computer Services Ltd. Computers - Software

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 State Bank of India Banks
 Tata Consultancy Services Ltd. Computers - Software
 Tata Motors Ltd. Automobiles - 4 Wheelers
 Wipro Ltd. Computers - Software
Particulars Abbreviation
Airtel AIR
Bajaj BJJ
Cipla CPL
DLF DLF
Housing Development Financial Corp HDFC
HindalCo HIND
Hindustan Unilever Limited HUL
Industrial Development Bank of India IDBI
Infosys INFY
Indian Tobacco Company ITC
Jaiprakash Associates JAP
Jindal Steel Works JSW
Larsen and Toubro L&T
Mahindra and Mahindra M&M
Maruti Suzuki MSZ
National Thermal Power Corp NTPC
Oil and Natural Gas Company ONGC

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Reliance Industries RIL
State Bank of India SBI
Tata Motors TM
Sensex SX

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REVIEW OF LITERATURE
A study by Budhrajaet al. (2004) on BSE suggests that abnormal returns in stock
prices around the bonus issue announcement date over three day trading period
starting one day before the announcement is significant at 95% confidence level. It
also says that much of the information in the bonus announcement gets impounded
into stock by the time of the announcement of the bonus issue. Most researchers
have lent supportto the fact that Indian markets are semi-strong.
Abhijit Dutta (2001) has examined the investors‟ reaction to information using
primary data collected from 600 individual investors and observes that the
individual investors are less reactive to bad news as they invest for longer period.
Hari Om Chaturvedi (2000), in his doctoral thesis, observed that the cumulative
abnormal returns (CAR) between the portfolios with positive and negative
unexpected half-yearly earnings were significant. Prabina Das, S. Srinivasan and
A. K. Dutta (2000) have studied the reaction of GDR prices and the underlying
share prices to the announcement of dividends and found that the CAR for the
GDR is mostly negative irrespective of the rate of dividend whereas the domestic
share prices react in a more synchronous manner. An attempt was made by Kun
Shin Im, Kevin E. Dow and Varun Grover (2001) in their study, examined the
changes in the market value of the firm as reflected in the stock price in response
to IT investment announcements. Reactions of price and volume were negatively
related to firm size and became more positive over time. Jijo Lukose and Narayan
Rao (2002) examined the security price behaviour around the announcement of
stock splits and around ex-split date. They find that there are 7.69 percent

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abnormal returns during the two days (i.e. the day of announcement of stock split
and the next day).
Lijleblom (1989) investigated the signaling hypothesis by considering stock
market price response to stock split issues for the firms that also concurrently
release other contaminating information, for instance release of past earnings. His
findings indicate that there is a greater positive stock price reaction for the stock
split issue-paying group than for the control group. This finding is interpreted as a
support of signaling hypothesis in the existence of other contaminating
announcements.
Peterson (1971) suggested that an increase in stock price following an event can
occur because the announcement of a stock split issue may have beneficial
information content. In the similar line Foster and Vickrey (1978) observe the
signaling hypothesis using daily return data and information content of 82 stock
dividend announcements. They found that there is a considerable positive
abnormal return around the announcement dates.
Gupta (1972) in his book has studied the working of stock exchanges in India and
has given a number of suggestions to improve its working. The study highlights
the' need to regulate the volume of speculation so as to serve the needs of liquidity
and price continuity. It suggests the enlistment of corporate securities in more than
one stock exchange at the same time to improve liquidity. The study also wishes
the costof issues to be low, in order to protect small investors

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RESEARCH METHODOLOGY
OBJECTIVES:-
 To know the composition of BSE-SENSEX.
 To know the volatility of stockmarket of last one years i.e financial year.
 To know Reasons behind the fluctuation
 To know Suggestion to retail investors, when to exit when to enter.
 To know the reasons of market volatility.
Sample Selection
For the purpose of this study BSE Sensex Index considered to study the Stock
Market in India. Sensex is the value-weighted index of the companies listed on the
stock exchange. Bombay Stock Exchange (BSE) came out in 1986, with a stock
index that subsequently became the Barometer of the Indian Stock Market.
Besides, it considered to be the best indicators of the performance of the whole
economy.
Sources ofData
The required information for the present study were the daily closing prices of
BSE Sensex Index and they were collected from the Prowess, which is a corporate
database maintained by CMIE.
Needfor Study
There exists a considerable amount of evidence both for and against various level
of efficiency for developed capital market. However, the capital market of the
developing world such as that of India has been less subjected to efficiency Work.
Therefore, further investigations on individual stock return data would provide

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more conclusive evidence. The knowledge of stock return in stock market can
prove useful for investors.
By properly timing their buy and sell decisions, they can enhance their adjusted
profit, altering the time of routinely scheduled transaction in the light of trading
volume changes can enhancing one‘s return on investment. The proposed study
provides a useful insight into the behaviour of return changes in the Indian capital
market.
Methodology
The project is an analytical work, where in the work, has to use the available facts
as information and analyze these to make a critical evaluation of material. The
Information furnished in this report has been calculated from secondaryData only.
This study comprises a period of a year starting from April -1-2014 to March-31-
2015 i.e., for financial year 2014-2015. The units of analysis include 30 companies
at the end of March 2015 that are listed on Bombay Stock Exchange. The filtering
process ofcompanies includes 3 criteria.
 First, the company must be listed on the Bombay Stock Exchange
before 1 April 2014.
 Second, the stocks of companies must not be suspended for more than
12 months at any time Period.
 Third, the stocks of companies must not be delisted during the period
of study.
Therefore, this study employs a data set of 30 Companies that are selected
based on five criteria and also BSE Sensex.

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Secondary Data
The Secondary data is obtained from internet and respective companies’
website.
There are four approaches of calculating the stock returns viz:-
i. Open to Open method
ii. Open to Close Method
iii. Close to Close Method
iv. Close to Open Method
This work is based on Close to Close approach of calculating the stock
returns.
 Close to Close Approach:
In this approach of calculating stock returns, the only Closing Prices of the
stockis considered. i.e.,
(CP1 – CP0)
R =
CP1 = Closing Price at end of the period
CP0 = Closing Price at beginning of period
This project is based on the Close to Close approach.

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Limitations of the Study
The Good report interprets the result of the study. But every project has its
own limitations. The following are some of the limitations of the study.
1. The Study is done on basis of stockprices of the companies.
2. There is no hard and fast rule of calculating the stockreturns.
3. The study is limited to only Sensex 30 companies out of all sensex listed
companies.
4. The Study is limited to only for the financial year 2014-15, i.e., April 2014
to March 2015.
5. This study doesn’t consider the fundamental factors effecting the stock
returns.
6. Reliability: The data collected in research work was secondary data, So, this
puts a question mark on the reliability of this data, which a very important
factor of this study as conclusion has been derived from this secondary data
only.
7. Accuracy: The facts and findings of the data cannot be accepted as accurate
to some extent as firstly, secondary data was collected. Secondly, for doing
descriptive research time needed to be more, because in short period you
cannot cover each point accurately.

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TYPE OF RESEARCH
 Descriptive research
In this project the research type used is descriptive because this research is the
most commonly used and the basic reason for carrying out descriptive research is
to identify the cause of something that is happening. For instance, this research
could be used in order to find out what age group is buying a particular brand of
cola, whether a company’s market share differs between geographical regions or
to discover how many competitors a company has in their marketplace. However,
if the research is to return useful results, whoever is conducting the research must
comply with strict research requirements in order to obtain the most accurate
figures/results possible. DESCRIPTIVE RESEARCH Descriptive research is
used to obtain information concerning the current status of the phenomena to
describe "what exists" with respect to variables or conditions in a situation. The
methods involved range from the survey which describes the status quo, the
correlation study which investigates the relationship between variables, to
developmental studies which seek to determine changes over time. Descriptive
research can be of two types: i. Quantitative descriptive research emphasizes on
what is, and makes use of quantitative methods to describe, record, analyze and
interpret the present conditions. Qualitative descriptive research also emphasizes
on what is, but makes use of non-quantitative research methods in describing the
conditions of the present.

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DATA ANALYSIS & INTERPRETATION
BSE-SENSEXMONTHLYWISE CLOSE
MARCH (2015)
Relatednews of rising and downfall of stock price:-
9 March 2015:-
A sudden slide in mid-afternoon trade took the barometer index, the
S&P BSE Sensex, to its lowest level in almost four weeks and the 50-unit
CNX Nifty to its lowest level in almost two weeks. The market breadth indicating
the overall health of the market turned negative from positive. The Sensex was
currently off 157.50 points or 0.55% at 28,687.28. BSE Small-Cap and Mid-Cap
indices, both, slipped into the red from green. Asian and European stocks were in
red.
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Banking and realty stocks edged lower. Index heavyweight and housing finance
major HDFC extended intraday losses. Another index heavyweight and cigarette
major ITC dropped amid intraday volatility.
Meanwhile, Minister of Parliamentary Affairs M.Venkaiah Naidu said in the Lok
Sabha yesterday, 9 March 2015, that the government is willing to consider some
further amendments to ensure minimum land acquisition based on the views and
suggestion of the opposition parties.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 838.30 crore
yesterday, 9 March 2015, as per provisional data released by the stock exchanges.
Domestic institutional investors (DIIs) sold shares worth a net Rs 35.31 crore
yesterday, 9 March 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
26 march 2015
BSE benchmark Sensex today plummeted over 654 points in its biggest drop in
nearly three months to end at 27,457.58 on across the board selling as geo-political
issues in the Middle East triggered capital outflow concerns.
Participants were also jittery as Thursday saw expiry of monthly derivative
contracts, brokers said, adding that global sentiment was weak after US equities
fell overnight reacting to a surprise fall in durable goods orders for February.
Crude oil surged by almost 6 per cent on supply concerns after Saudi Arabia
carried out air strikes against Huthi rebels in Yemen today.
In the local currency market, the Indian rupee weakened by another 32 paise to
62.65 (intra-day) against the dollar.

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INTERPRETATION:-
On 9 march there is slight decline to 157 point where the rupee edged lower
against the dollar, where on 26 march there is a slumped of stock to 650 pts due to
surprise falls in durable goods order. And Indian rupee weakened by another 32
paise to 62.65 (intra-day) against the dollar.
FEBRUARY (2015)
9 February 2015
The BSE Sensex ended lower on Monday, falling for a seventh consecutive
session, as exit polls showed Prime Minister Narendra Modi facing electoral defeat
in Delhi, raising concerns that the government may not gain control in the upper
house of the parliament.
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The anti-corruption Aam Aadmi Party, or Common People's Party, is likely to win
38 seats in the 70-seat New Delhi assembly, according to the average of four
opinion polls released on Saturday after the voting had ended.
Falls also tracked weak corporate earnings, lower Asian shares and caution ahead
of gross domestic product data, due at 05:30 p.m, for the first half of fiscal 2014/15
that will use a new method to recalculate growth.
The benchmark BSE Sensex fell 1.7 percent, marking its biggest daily fall since
Jan. 6, while the Nifty ended 1.56 percent lower.
The falls matched a seven-day losing streak in November 2013. Larsen and Toubro
(LART.NS) fell 6.6 percent after its quarterly profit lagged estimates while it also
reduced order bookgrowth outlook.
28 February 2015:-
The Narendra Modi government’s first full-year Budget turned out to be a volatile
affair for stocks with the Sensex swinging 700 points, but promise of lower
corporate taxes and deferral of GAAR helped the benchmark finally end 141.38
points up — the first rise on a Budget day in 4 years.
The Nifty rose 57 points to finish above the 8,900-level.
Shares of Banking, Healthcare and Auto sectors shot up on good buying while
FMCG, Consumer Durable and Power counters fell on selling pressure. Scrips of
cigarette makers, led by ITC, declined on a proposal to hike excise duty on
cigarettes.

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While participants today said they were initially disappointed on lack of big-bang
reforms in Budget, sentiments were lifted after Finance Minister Arun Jaitley’s
announcement of cut in corporate tax by 5 per cent to 25 per cent over four years
starting April 2016.
INERPRETATION:-
On 9th march there is a decline on stock price of sensex due to electoral defeat of
narendar modi in election poll, where aam admi won the seats, where on 28th feb
there is a great rise of stock price of 700 points due to first budget of parliament
and promise of lower corporatetax by 5 %.

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JANUARY (2015)
6 January 2015
Weakness continued on the bourses in mid-morning trade, with key indices trading
sharply lower for the day. The barometer index, the S&P BSE Sensex, and the 50-
unit CNX Nifty, both, hit 1-1/2-week low. The market breadth indicating the
overall health of the market was quite weak with more than three losers for every
gainer on BSE. TheSensex was currently off 589.49 points or 2.12% at 27,252.83.
The BSE Mid-Cap index was off 1.72%. The BSE Small-Cap index was off 1.8%.
Indian stocks tumbled today amid a setback in global equities triggered by sharp
slide in global crude oil prices.
Realty stocks declined. Bank of Baroda edged lower.
Growth at India's service sector activity moderated last month, according to a
survey from HSBC Holdings Plc and Markit Economics released today, 6 January
2015.
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15 January 2015
In its biggest single-day rally in over 5 years, benchmark Sensex today zoomed by
728.73 points to reclaim the 28,000-mark on massive buying across sectors after
RBI Governor Raghuram Rajan sprang a surprise by cutting interest rates to boost
growth.
Markets opened with a gap-up of nearly 500 points. Before trading began Rajan,
who had focused on quelling inflation since taking office in September 2013,
lowered the benchmark repurchase rate to 7.75 per cent from 8 per cent, the first
reduction since May 2013. As the day progressed, participants, both domestic and
foreign, stepped up purchases.
Investor wealth reclaimed the Rs 100-lakh crore mark. Buying was seen across-
the-board as all 12 BSE sectoral indices ended with gains of between 0.44-7.99 per
cent.
20 January 2015
Metal and banking stocks led the rally as key benchmark indices surged to record
high after International Monetary Fund (IMF) yesterday, 19 January 2015, said
India's economy will be world's fastest-growing major economy in the year
through March 2017. The barometer index, the S&P BSE Sensex, and the 50-unit
CNX Nifty, both, hit lifetime high on intraday basis as well on closing as well.
Shares of index heavyweights ITC, HDFC, Reliance Industries (RIL), Infosys,
ICICI Bank, HDFC Bank and L&T edged higher. The Sensex surged 522.66 points
or 1.85% to settle at 28,784.67. The market breadth indicating the overall health of
the market was positive. Asian and European stocks edged higher.

36 | P a g e
FMCG stocks witnessed selling pressure. Infosys gained after Emirates Islamic
Bank selected Infosys Finacle Islamic Banking solution. Banks stocks rose on
renewed buying. Kotak Mahindra Bank rose after strong Q3 results. Metal and
mining shares rose after the latest data showed China's GDP grew 7.3% in Q4
December 2014, a tad higher than market expectations. Sesa Sterlite rose on
reports that the company expects to restart iron ore mining in Goa within two
weeks.
While the IMF trimmed its global growth forecast for this year and the next year,
the fund said that the growth forecast is broadly unchanged for India as weaker
external demand is offset by the boost to the terms of trade from lower oil prices
and a pickup in industrial and investment activity after policy reforms. IMF
estimates India's growth accelerating to 6.5% in the fiscal year through March
2017.
Foreign portfolio investors (FIIs) bought shares worth a net Rs 417.01 crore from
the secondary equity markets yesterday, 19 January 2015, as per data from the
National Securities Depository (NSDL).
In the foreign exchange market, the rupee edged lower against the dollar.
30 January 2015
A benchmark index of Indian equities markets was trading 383 points or 1.29
percent down in Friday's afternoon trade session, as banking, consumer durables
and automobile stocks declined.
The markets plunged after scaling a new high of 29,844.16 points in the morning
trade session. It surpassed the previous high of 29,786.32 points touched Jan 28.

37 | P a g e
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE),
which opened at 29,801.60 points, was trading at 29,299.09 points (12.40 p.m.),
down 382.68 points or 1.29 percent from the previous day's close at 29,681.77
points.
The Sensex touched a high of 29,844.16 points and a low of 29,232.96 points in
the trade so far.
Selling pressure was observed in banking, consumer durables, automobile,
healthcare and fast moving consumer goods (FMCG) stocks. While healthy buying
took place in information technology (IT), realty and power sectors.
The S&P BSE bankex was down 508.30 points, followed by consumer durables
index which was lower by 153.93 points, automobile index declined by 140.28
point, healthcare index lost 90.27 points and FMCG index decreased by 66.89
points.
However, IT index was up 45.93 points, realty index was higher by 40.11 points
and power index gained 20.14 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading down
111 points or 1.24 percent at 8,841.35 points. The Nifty had touched a new record
high in the morning trade at 8,996.60 points.

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INTERPRETATION:-
on 6th march there is a decline in sensex from 580 pts due to fall in the price of
bank of baroda.on 15 march there is a boost in stock price of sensex from 750
points its was due to raghuram rajan RBI governor sprang a surprise by cutting
interest rates to boost growth.On 20th march The Sensex surged 522.66 points or
1.85% to settle at 28,784.67. The market breadth indicating the overall health of
the market was positive. Due to International Monetary Fund (IMF) yesterday,
said India's economy will be world's fastest-growing major economy in the year
through March 2017

39 | P a g e
DECEMBER (2014)
16 December2014
Jaiprakash Associates rose 4.66% to Rs 24.65 at 14:34 ISTon BSE on bargain
hunting after the stock fell 20.94% in the preceding nine trading sessions to Rs
23.60 on 16 December 2014, from a recent high of Rs 29.85 on 3 December 2014.
Meanwhile, the BSE Sensex was up 2.82 points, or 0.01%, to 26,784.26.
On BSE, so far 34.21 lakh shares were traded in the counter, compared with an
average volume of 41.61 lakh shares in the past one quarter.
The stock had underperformed the market over the past one month till 16
December 2014, falling 31.69% compared with 4.51% fall in the Sensex. The scrip
had also underperformed the market in past one quarter, falling 31.09% as against
Sensex's 1.09% rise.
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40 | P a g e
The mid-cap company has an equity capital of Rs 486.49 crore. Face value per
share is Rs 2.
On Tuesday, 16 December 2014, media reports suggested that Jaiprakash
Associates delayed repayment of fixed deposits to its investors. The company had
reportedly launched fixed deposits scheme in 2012 for tenure of one, two and three
years. In some cases, Jaiprakash Associates withheld principal amounts of fixed
deposits, reports added.
22 December 2014
The benchmark BSE Sensex rose for the third day ending about 330 points higher
on buying in banking, FMCG and auto stocks amid firming trends in global
markets.
The wider Nifty of NSE reclaimed the 8,300-mark amid positive domestic factors
after the introduction of GST Bill in the Lok Sabha on Friday. The 50-share index
soared by 98.80 points, or 1.20 per cent to close at 8,324.
The 30-share Sensex spurted by 329.95 points, or 1.21 per cent, to 27,701.79. It
touched the day’s high of 27,725.27.
Of the 30-Sensex scrips, 26 stocks ended with gains.
Mahindra and Mahindra rose the most by 4.09 per cent among Sensex stocks,
followed by Coal India which gained 3.61 per cent.
State-run BHEL spurted by 2.67 per cent to Rs 265.75 after company bagged a
16.96 million euro contract for a thermal power project in Turkey.

41 | P a g e
INTERPRETATION:-
on 16th December there is downfall in stock price of sensex 20.94%,due to
Jaiprakash Associates delayed repayment of fixed deposits to its investors .On 22nd
march the sensex rise to 330 points, higher on buying in banking, FMCG and auto
stocks amid firming trends in global markets.
NOVEMBER(2014)
13 November
A sharp slide in global crude oil prices overnight and data showing continuation of
buying of Indian stocks by foreign portfolio investors boosted sentiment as key
benchmark indices edged higher on the last trading session of the week. The
barometer index, the S&P BSE Sensex, regained the psychological 28,000 level.
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42 | P a g e
The Sensex and the 50-unit CNX Nifty, both, attained record closing high. The
Sensex advanced 106.02 points or 0.38% to settle at 28,046.66. The market breadth
indicating the overall health of the market was positive.
Global crude oil prices witnessed a sharp slide overnight. Indian government's
decision last month to decontrol diesel prices and a sharp decline in global crude
oil prices recently will reduce the government's fuel subsidy burden and help
contain its fiscal deficit. The steep slide in global crude oil prices will also help
India in containing its current account deficit and fuel price inflation. India imports
80% of its crude oil requirement. The latest data showed that inflation based on the
wholesale price index eased further last month. The data comes close on the heels
of another data this week showing easing of consumer price index last month.
24 November
Continuing their record-setting spree, the benchmark BSE Sensex closed at a new
high of 28,499.54 and the NSE Nifty ended above the record 8,500-mark for the
first time on sustained funds inflows in anticipation of more reforms during the
winter session of Parliament.
Intra-day, the Sensex rallied to an all-time high of 28,541.96, surpassing its peak of
28,360.66, and the Nifty touched 8,534.65, breaking the earlier record of 8,489.80,
reached on November 21.
The 30-share index resumed higher at 28,413.01 and firmed up further to an all-
time high of 28,541.96, before closing at 28,499.54, rising 164.91 points, from its
last weekend’s record closing of 28,334.63. The gauge had gained 301.78 points in
the past two sessions.
Of the Sensex, 17 scrips led by Infosys, ICICI Bank, M&M, BHEL, HDFC Bank,
Hero MotoCorp, SBI, Tata Power, TCS and Wipro closed higher, while 13 ended
in the negative zone.

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INTERPRETATION:-
on November month there is constant up and down in stock price with not so much
difference of 200 pts ,where the investors says the november month is a average
month for all the investors.
OCTOBER (2014)
9 October2014
Key benchmark indices surged on Thursday, 9 October 2014, snapping three day
losing streak as firmness in global stocks boosted sentiment. The S&P BSE Sensex
rose 390.49 points or 1.49% to settle at 26,637.28, its highest closing level since 24
September 2014.
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Meanwhile, the provisional data released by the stock exchanges after trading
hours yesterday, 9 October 2014, showed that foreign portfolio investors (FPIs)
sold shares worth a net Rs 20.89 crore on that day.
31 October2014
Indian stock markets added nearly 2% on 31 October, as the Japanese central
bank's unexpected expansion of its aggressive stimulus programme raised hopes
for additional foreign inflows.
The benchmark S&P BSE Sensex share average finished 519.50 points, or 1.9%,
higher at 27,865.83 points, after striking a record high of 27,894.32 in intra-day
trade.
The Nifty finished 153 points, or 1.87%, higher at 8,322.20 after hitting an all-time
high of 8,330.75 in intra-day trade.
Capital Economics said in a note to clients: "It always looked likely that the Bank
of Japan would be forced to step up its pace of easing but the change of tack has
come sooner than the market (or we) had expected. Given the recent downward
trend in inflation, the Bank could well end up increasing its asset purchases again
next year..."
Capital Economics said in a separate note: "...The Bank of Japan's announcement
[on 31 October]...is a timely reminder that not everyone has to follow the Fed. We
would be wary of speculation that an outflow of Japanese money will lift bond
markets elsewhere. Nonetheless, further QE in Japan should help to support equity
prices worldwide and especially in the euro-zone if expectations build that the
ECB will follow with full-blown QE of its own..."

45 | P a g e
Earlier in the day, the Bank of Japan (BoJ) stunned the markets by announcing it
will expand its massive stimulus programme, rolled out 18 months ago.
The BoJ will now buy assets at an annual pace of about 80tn yen, an increase from
the previous 60tn to 70tn yen target range.
India's Sensex and Nifty added 4.88% and 4.74% respectively in October, marking
eight months of gains in nine for the indices.
INTERPRETATION:-
On 9 October 2014, snapping three day losing streak as firmness in global stocks
boosted sentiment. showed that foreign portfolio investors (FPIs) sold shares worth
a net Rs 20.89 crore on that day.On 31st october BSE Sensex share average
finished 519.50 points, as the Japanese central bank's unexpected expansion of its
aggressive stimulus programme raised hopes for additional foreign inflows.

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SEPTEMBER (2014)
18 September 2014
A sustained uptrend continued as key benchmark indices hit fresh intraday high in
afternoon trade. The barometer index, the S&P BSE Sensex, regained the
psychological 27,000 level. The Sensex hit its highest level in almost a week. The
50-unit CNX Nifty also hit its highest level in almost a week after moving past the
psychological 8,000 level earlier during the day. The Sensex was currently up
413.69 points or 1.55% at 27,044.98. The market breadth indicating the overall
health of the market was strong, with more than two gainers for every loser on
BSE. The BSE Mid-Cap index was up 1.74%. The BSE Small-Cap index was up
2.61%. Both these indices outperformed the Sensex. Indian stocks surged after the
US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17
September 2014, maintained a commitment to keep US interest rates near zero for
a "considerable time". Meanwhile, Chinese President Xi Jinping who is on a three-
day visit to India is expected to pledge billions of dollars for upgrading India's
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infrastructure. In pharma pack, Dr Reddy's Laboratories scaled record high. In auto
pack, Hero MotoCorp advanced to a record after Chief Executive Officer Pawan
Munjal was quoted as saying that the motorcycle maker will enter the US and
Europe by 2016. Shares of car major Maruti Suzuki India scaled record high.
Among side counters, Credit Analysis and Research (CARE), Blue Dart Express,
Hexaware Technologies, Cyient, JK Lakshmi Cement, JK Tyre & Industries and
Hatsun Agro Productscaled record high. Manappuram Finance hit 52-week high.
The US Federal Reserve at the end of a two-day policy meeting on Wednesday, 17
September 2014, maintained a commitment to keep US interest rates near zero for
a "considerable time" after the bond-buying program ends even as its rate
projections suggested some officials might have in mind a slightly more aggressive
path of rate increases next year and in 2016 than previously thought. Low interest
rates in the US have triggered large inflow of dollars into emerging markets as
investors seek higher yields and India has been one of the major beneficiaries. The
Fed has kept its short-term interest rate near-zero since December 2008.
22 September 2014
After an extremely range bound movement in negative zone in early afternoon
trade, key benchmark indices trimmed losses in afternoon trade. Bank stocks led
intraday recovery. The barometer index, the S&P BSE Sensex, reclaimed the
psychological 27,000 level after falling below that mark earlier during the trading
session. The Sensex was currently down 35.19 points or 0.13% at 27,055.23.
Global cues were negative. The market breadth indicating the overall health of the
market was positive. Meanwhile, falling global crude oil prices augur well for
India as the country imports almost 80% of its crude oil requirements. Weakness in

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global industrial metal prices could reduce cost of production for manufacturing
companies. Most IT stocks declined. Bharti Infratel fell on buzz that US-based
private equity fund Kohlberg Kravis Roberts and Co. (KKR) is set to sell its entire
stake in the company via a block deal on the stock exchanges. Hindustan Zinc,
Cairn India and Asian Paints dropped on turning ex-dividend today, 22 September
2014.
INTERPRETATION:-
On 18th September Sensex was currently up 413.69 points or 1.55% at 27,044.98
market breadth indicating the overall health of the market was strong, with more
than two gainers, Wednesday, 17 September 2014, maintained a commitment to
keep US interest rates near zero for a "considerable time". Meanwhile, Chinese
President Xi Jinping who is on a three-day visit to India is expected to pledge
billions of dollars for upgrading India's infrastructure.
Hero MotoCorp advanced to a record after Chief Executive Officer Pawan Munjal
was quoted as saying that the motorcycle maker will enter the US and Europe by
2016. Shares of car major Maruti Suzuki India scaled record high.
On 22nd September there is slight decline in stock price Bharti Infratel fell on buzz
that US-based private equity fund Kohlberg Kravis Roberts and Co. (KKR) is set
to sell its entire stake in the company via a block deal on the stockexchanges

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AUGUST (2014)
12 august 2014
Benchmark indices continue to trade lower, amid weak Asian cues, as investors
booked profits on concerns over lower industrial growth in June and rising
consumer price inflation in July. Further, weak first quarter earnings from state-
owned engineering major BHEL also weighed on investor sentiment.
At 13.10 PM, the 30-share Sensex was down 52 points at 25,829 and the 50-
share Nifty dipped by 21 points to trade at 7,706.
Asian shares weakened after China's economy showed further signs of softening in
July despite a burst of government stimulus measures, suggesting more policy
support may be needed to keep growth on track.
An encouraging performance from factories, where output for July met market
forecasts, was offset by less buoyant activity for investment and retail sales, where
growth was not as strong as expected, while the cooling property market showed
further signs of deterioration.
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Data earlier on Wednesday showed the amount of money flowing into China's
economy slowed to the lowest level in nearly six year, adding to worries about the
outlook.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 370.83 crore on
Tuesday, 12 August 2014, as per provisional data from the stock exchanges.
Meanwhile, Nomura has raised the BSE Sensex target to 30,310 by end of August
2015. The target implies a 17% gain from Tuesday's BSE closing level.
In the foreign exchange market, the rupee edged lower against the dollar. The
partially convertible rupee was hovering at 61.235, compared with its close of
61.085 on Tuesday.
INTERPRETATION:-
On 12 august indices continue to trade lower, amid weak Asian cues, as investors
booked profits on concerns over lower industrial growth in June and rising
consumer price inflation in July. 30-share Sensex was down 52 points at 25,829
Asian shares weakened after China's economy showed further signs of softening in
July despite a burst of government stimulus measures, suggesting more policy
support may be needed to keep growth on track.

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JULY (2014)
8 July 2014
Volatility continued as key benchmark indices reversed initial gains in morning
trade. The barometer index, the S&P BSE Sensex, regained 26,000 mark after
falling below that level for a brief period in morning trade. The Sensex was down
70.08 points or 0.27%, off close to 160 points from the day's high and up about 50
points from the day's low. The market breadth indicating the overall health of the
market was weak.
Shares of companies whose fortunes are linked to orders from Indian Railways
edged lower ahead of the presentation of Railway Budget today, 8 July 2014.
At 10:20 IST, the S&P BSE Sensex was down 70.08 points or 0.27% to 26,030.
The index dropped 117.11 points at the day's low of 25,982.97 in morning trade, its
lowest level since 4 July 2014. The index rose 90.36 points at the day's high of
26,190.44 in early trade, a lifetime high of the index.
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The CNX Nifty was down 26.75 points or 0.34% to 7,760.40. The index hit a low
of 7,744.95 in intraday trade, its lowest level since 4 July 2014. The index hit a
high of 7,808.85 in intraday trade, a lifetime high of the index.
The market breadth indicating the overall health of the market was weak. On BSE,
1,259 shares declined and 782 shares rose. A total of 66 shares were unchanged.
16 July 2014
Reserve Bank of India's (RBI) incentives for banks to raise long term bonds for
financing infrastructure projects and data showing a decent growth in India's
merchandise exportsin June 2014 triggered a rally on the domestic bourses today,
16 July 2014. The lion's share of the gains came during the last one hour of trade as
European stocks surged on the back of data showing acceleration in
China's GDPgrowth in Q2 June 2014. The barometer index, the S&P BSESensex,
and the 50-unit CNX Nifty, both, reached their highest closing level in more than a
week. The Sensexgarnered 321.07 points or 1.27%, up close to 300 points from the
day's low and off about 50 points from the day's high. The market breadth
indicating the overall health of the market was strong, with more than two gainers
for every loser on BSE. The BSE Mid-Cap index was up 1.34%. The BSE Small-
Cap index was up 2.04%. Both these indices outperformed the Sensex.
INTERPRETATION:-
On 8th July the Sensex was down 70.08 points or 0.27%, off close to 160 points
from the day's high and up about 50 points from the day's low. The market breadth
indicating the overall health of the market was weak. As the shares of companies,
whose fortunes are linked to orders from Indian Railways edged lower ahead of the
presentation of Railway Budget , 8 July 2014

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JUNE (2014)
2 June 2014
Bulls are calling the shots on the bourses. Key benchmark indices surged last week
as foreign investors continued to mop up Indian stocks on expectations the
government will take steps for revival of the economy. The Reserve Bank of
India's (RBI) decision to cut Statutory Liquidity Ratio by 50 basis points for
commercial banks boosted sentiment. Signals from the Prime Minister's Office that
the government is keen to improve governance aided the rally on the bourses.
Indian stocks surged to record at on Friday, 6 June 2014, after the European
Central Bank on Thursday, 5 June 2014, cut its benchmark interest rates to
unprecedented lows, spurring speculation the decision will accelerate capital
inflows. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty,
both, hit record high.
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The Sensex jumped 1,179.12 points or 4.86% to settle at 25,396.46 in the week
ended 6 June 2014. The 50-unit CNX Nifty jumped 353.45 points or 4.88% to
settle at 7,583.40.
Investors continued to mop up small-cap and mid-cap shares. The BSE Small-Cap
index jumped 758.31 points or 8.41% to settle at 9,774.04. The BSE Mid-Cap
index jumped 631.32 points or 7.45% to settle at 9,098.54. Both these indices
outperformed the Sensex.
Trading for the week began on an upbeat note. Key benchmark indices surged on
Monday, 2 June 2014, after a manufacturing sector survey showed that production
volumes at Indian manufacturers continued to rise in the month just gone by. The
market sentiment was boosted by data showing that foreign funds made heavy
purchases of Indian stocks during the preceding trading session. The S&P BSE
Sensex garnered 467.51 points or 1.93% to settle at 24,684.85, its highest closing
level since 26 May 2014.
Key benchmark indices edged higher in a choppy trading on Tuesday, 3 June 2014,
after the Reserve Bank of India (RBI) announced reduction in Statutory Liquidity
Ratio by 50 basis points for commercial banks after a monetary policy review, so
as to give banks more freedom to expand credit to the non-government sector. The
market sentiment was boosted by the RBI's decision allow foreign portfolio
investors to participate in the domestic exchange traded currency derivatives
market to the extent of their underlying exposures plus an additional $10 million.
The S&P BSE Sensex garnered 173.74 points or 0.7% to settle at 24,858.59, a
record closing high for the index.

55 | P a g e
26 June 2014
. Key benchmark indices were marginally lower in the week ended Friday, 27 June
2014. The barometer index, the S&P BSE Sensex edged lower in three out of five
trading sessions in the week just gone by. The BSE Mid-Cap and the BSE Small-
Cap indices outperformed the Sensex during the week.
In the week ended Friday, 27 June 2014, the 30-share S&P BSE Sensex shed 5.59
points or 0.02% to 25,099.92. The 50-unit CNX Nifty slipped 2.65 points or 0.03%
to 7,508.80.
The S&P BSE Mid-Cap index gained 243.21 points or 2.71% to 9,205.17. The
S&P BSE Small-Cap index advanced 261.07 points or 2.67% to 10,022.29. Both
these indices outperformed the Sensex.
Key benchmark indices edged higher in what was a volatile session of trade on
Friday, 27 June 2014. Firmness in European stocks aided gains on the domestic
bourses. The S&P BSE Sensex was up 37.25 points or 0.15% to 25,099.92, its
highest closing level since 25 June 2014.
INTERPRETATION:-
On 2nd june indices surged last week as foreign investors continued to mop up
Indian stocks on expectations the government will take steps for revival of the
economy. The Reserve Bank of India's (RBI) decision to cut Statutory Liquidity
Ratio by 50 basis points for commercial banks boosted sentiment. Signals from the
Prime Minister's Office that the government is keen to improve governance aided
the rally on the bourses.

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MAY (2014)
9 May 2014
Key benchmark indices rallied in the week ended Friday, 9 May 2014 on
speculation the Bharatiya Janata Party (BJP) led National Democratic Alliance
(NDA) will be able to form the next government at the centre after Lok Sabha
elections which conclude early next week. The barometer index, the S&P BSE
Sensex settled at a record closing high after scaling a record high above the
psychological 23,000 mark on Friday, 9 May 2014. The 50-unit CNX Nifty also hit
a record high on intraday as well as closing basis on Friday, 9 May 2014. The
market logged gains in four out of five trading sessions in the week just gone by.
Investors are hoping that a BJP-led government will give a boost to India's policy
reforms, helping the economy recover from a slowdown. The BJP in its Lok Sabha
polls manifesto has promised more business-friendly policies if the party comes to
power after elections. The BJP has said that measures for the revival of the
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57 | P a g e
economy are its priority if the party comes to power after elections. India's GDP
growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3
December 2013.
Narendra Modi, the prime ministerial candidate from the NDA, is perceived as
being more business-friendly and decisive by the business community. As chief
minister for the fast-growing state of Gujarat, Modi has built a reputation for
getting things done.
29 May 2014
Key benchmark indices surged in early trade tracking mostly firm Asian stocks.
The barometer index, the S&P BSE Sensex crossed 25,000 level. The Sensex was
up 309.05 points or 1.25%, up close to 90 points from the day's low. The market
breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap
index rose nearly 1.5%. The BSE Small-Cap index rose over 1.5%. Both these
indices outperformed the Sensex.
DLF rose after the company said that DLF Emporio, a subsidiary of DLF, has
successfully placed India's first Commercial Mortgage Backed Security (CMBS)
issuance of Rs 525 crore. GAIL (India) gained ahead of its Q4 results today, 26
May 2014.
The market sentiment was also boosted by data showing that foreign funds
remained net buyers of Indian stocks on Friday, 23 May 2014. Foreign institutional
investors (FIIs) bought shares worth a net Rs 416.80 crore on Friday, 23 May
2014, as per provisional data from the stockexchanges.
The market may remain volatile this week as traders roll over positions in the
futures & options (F&O) segment from the near month May 2014 series to June

58 | P a g e
2014 series. The near month May 2014 derivatives contract expire on Thursday, 29
May 2014.
INTERPRETATION:-
On 9 May 2014 on speculation the Bharatiya Janata Party (BJP) led National
Democratic Alliance (NDA) will be able to form the next government at the centre
after Lok Sabha elections which conclude early next week.
On 29 may The Sensex was up 309.05 points or 1.25%, up close to 90 points from
the day's low. The market breadth, indicating the overall health of the market, was
strong.
DLF rose after the company said that DLF Emporio, a subsidiary of DLF, has
successfully placed India's first Commercial Mortgage Backed Security (CMBS)
issuance of Rs 525 crore.

59 | P a g e
APRIL (2014)
9 April 2014
Key benchmark indices surged in late trade. The barometer index, the
S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high.
The Sensex was provisionally up 372.41 points or 1.67, up about 335 points from
the day's low and off close to 20 points from the day's high. The market breadth,
indicating the overall health of the market was strong. The BSE Small-Cap index
was up nearly 2%. The market sentiment was boosted by data showing that foreign
institutional investors (FIIs) remained net buyers of Indian stocks on Monday, 7
April 2014. Gains in Asian and European stocks also boosted sentiment on the
domestic bourses.
Aviation stocks rallied. Pharma stocks rose. Among capital goods shares,
Crompton Greaves hit 52-week high. Index heavyweight Reliance Industries (RIL)
edged higher.
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60 | P a g e
The market edged higher in early trade on firm Asian stocks. Key benchmark
indices extended initial gains and hit fresh intraday high in morning trade. The
Sensex trimmed gains in mid-morning trade. The Sensex further pared gains in
early afternoon trade. Key benchmark indices extended intraday gains in afternoon
trade as European stocks edged higher in early trade there. Key benchmark indices
extended intraday gains and hit fresh intraday high in mid-afternoon trade. Key
benchmark indices surged in late trade. The Sensex and the 50-unit CNX Nifty,
both, hit record high
17 April 2014
Key benchmark indices ended almost unchanged in a truncated trading week ended
Thursday, 17 April 2014. The barometer index, the S&P BSE Sensex logged
marginal declines while the 50-unit CNX Nifty settled a tad higher. The market
declined in two out of three trading sessions in the week just gone by.
In the week ended Thursday, 17 April 2014, the 30-share S&P BSE Sensex fell
0.12 points to 22,628.84. The 50-unit CNX Nifty rose 3.10 points or 0.04% to
6,779.40.
The S&P BSE Mid-Cap index rose 0.83 points or 0.01% to 7,339.29 and the S&P
BSE Small-Cap index gained 0.83 points or 0.01% to 7,524.01. Both these indices
outperformed the Sensex.
Key benchmark indices rallied on Thursday, 17 April 2014 after government bond
prices surged after the Reserve Bank of India (RBI) on Thursday, 17 April 2014,
fully sold the Rs 20000-crore worth of debt on offer, accomplishing the country's
biggest-ever auction. The S&P BSE Sensex was up 351.61 points or 1.58% to
22,628.84, its highest closing level since 11 April 2014.

61 | P a g e
INTERPRETATION:-
On 9th April there is increase in stock price of sensex and Aviation stocks rallied.
Pharma stocks rose. Among capital goods shares, Crompton Greaves hit 52-week
high. Index heavyweight Reliance Industries (RIL) edged higher.
On 17th april there is decline on stock price after government bond prices surged
after the Reserve Bank of India (RBI) on Thursday, 17 April 2014, fully sold the
Rs 20000-crore worth of debt on offer, accomplishing the country's biggest-ever
auction

62 | P a g e
FINDINGS & CONCLUSION
FINDINGS:-
1. The banking companies performed moderate throughout the year.
2. The FMCG companies were found to be safe ones.
3. The Construction industry suffered lot and yielded negative throughout the
year.
4. The Market was not good for the inter week trading as there was more
volatility.
5. The Market was at average trend in the FY 2014-2015.
6. For long term investment upto an year or more, the returns would be with low
risk.
7. The good portfolio would reduce the risk.
8. The automobile industries emerged as positive yielding industry throughout the
year like bajaj automobiles.
9. Even though, there was high demand for energy resources and petrol
throughout the year, the companies like RIL, ONGC, NPTC etc did not
perform upto the mark.
10.The Construction industry found to be risky in the FY 2014-15.
11. The European Market Crisis, the annual budget plan of Central government,
Monitory policy of Reserve Bank of India (RBI) contributed to upward trend

63 | P a g e
of market. There was more support form RBI and the government as
government reduces the corporatetax .

64 | P a g e
CONCLUSION
Through this research we can conclude that:
 Stockmarket fluctuates by the external environment.
 Stock market is all about future prediction.
 Stock market is very sensitive market.
 It is based on “high risk and high return.”
 Comparatively stock market is less risky than the other market and generates
more
 money for the economy One who have good knowledge in stock market,
may survive in the market and generates
 profits or good return whether the market is down Investors should not
invest on the basis of rumors they must observethe market
 condition or trends Indian economy and than invest If they wanna generate
good return.

65 | P a g e
BIBLIOGRAPHY
JOURNALS:-
 • journal of financial economics topic stock behavior volume 116 issue 1
page 72-78 year 2012
 Aggrarwal, R., Inclan, C., & Leal, R. (1999), “Volatility in Emerging
StockMarkets”,
 Journal of Financialand QuantitativeAnalysis , Vol.34, pp. 33-55.
 Akinkugbe, O. (2005), “Efficiency in Botswana Stock Exchange: An
Empirical
 Analysis”, The Business Review , Vol.4, No.2, pp. 223 - 230.
 M Raghunathan, Madhumati page no. 23,24,26,28,200,209 Journals and
magazines JARN, Published Feb 2009
 Security Analysis and Portfolio Management by Prasanna Chandra
 Andersen, T. G. (1996), “Return volatility and trading volume: An
information low interpretation of stochastic volatility”, Journal of
Finance, Vol.5, pp. 169–204.
 Barua, S. K., & Raghunathan, V. (1987), “Inefficiency and Speculation in
the Indian Capital Market”, Vikalpa , Vol.12(3), pp. 53-58.
 Batra, A. (2004), “Stock Return Volatility Patterns in India”, Working
Paper Series,No.124, ICRIER, New Delhi .

66 | P a g e
WEBSITES
 WWW.BSEINDIA.COM
 WWW.BUSINESSSTANDARD.COM
 WWW.FINANCIALEXPRESS.COM
 WWW.ECONOMICTIMES.COM
 WWW.TOPSTOCKRESEARCH.COM
 WWW.SWASTIKAINVESTMART.COM

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