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Introduction to the topic:
Investors look at several parameters like EPS, earning growth rate, ROIC, Debt-to-
profit, P-E ratios and many more of a company to find a good buy. These parameters are no
doubt will get us to the best companies available at a point of time. But there are some
other important parameters which can enhance our return when looked properly. Stocks
Beta is one such parameter, which is easy to calculate and easy to apply while selecting
The significant role played by beta in diverse aspects of financial decision making has
forced people from small investors to investment bankers to rethink on beta in the era of
globalization. In the present changing market condition, it is imperative to understand the
stability of beta which augments an efficient investment decisions with additional
information on beta. This study examined the stability of beta for India market for a ten year
period from 2008 to 2012. The monthly return data of 15 selected stocks are considered for
examining the stability of beta.
JRG Securities Ltd is one of India's leading financial services providers with strong
presence in South India. The company along with their subsidiaries is primarily engaged in
the business of retail broking (equity and commodity broking), direct insurance agent and
financial services. Their product suite includes equity trading, commodity trading, currency
derivatives, insurance broking, margin financing and loans against shares, among others.
They offer an online product, through a brand, Inditrade, to offer services to the online
The company is a member of the National Stock Exchange of India (NSE), the
Bombay Stock Exchange (BSE), 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). They are a full-fledged depository participant of the National Securities
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Depository Ltd and Central Depository Services (India) Ltd. Besides these, they are also a
leading Insurance Broker.
The company is 44.8%-owned by Duckworth Ltd, a subsidiary of Baring India Pvt
Equity Fund II Ltd. The company is headquartered in Kochi with a physical presence of about
475 branches and associates across Kerala, Tamil Nadu, Andhra Pradesh, Karnataka and
Maharashtra. The company is listed on the Bombay Stock Exchange and has a diverse set of
JRG Securities Ltd was incorporated on October 17, 1994 as a private limited
company with the name JRG Associates Pvt Ltd. Initially, the company was started as a
partnership firm in the year 1992, and later converted into a private limited company. In the
year 1994, they became a member of the Cohin Stock Exchange. They initially focused on
developing a client base in Kerala and Tamil Nadu and established several operation centres
across these states.
Objectives Of The Study:
This study is conducted to determine the Stability of beta of banking stocks.
To understand the daily trading in the stock broking house. measures the volatility of a banking industry stock in relation to a BSE Bankex To understand the fluctuation in the banking stock in relation to the market index.