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    SYNOPSYS ON

    BETA STABILITY ANALYSIS OF BANKING STOCKS WITH THE SPECIAL

    REFERENCE TO JRG SECURITY LTD.

    Submitted by : Pavan Kumar

    2nd

    Year MBA A

    4SF11MBA58

    Sahyadri college of Engineering

    and Management

    Internal Guide : Dr. Vidyavathi

    Professor

    Department of MBA

    Sahyadri college of Engineering

    and Management

    External Guide : Mr.Anil N. Karkera

    Branch Manager

    JRG Securities Ltd.

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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

    stocks.

    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.

    Company Introduction:

    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

    customers.

    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

    public shareholders.

    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:

    Primary Objective

    This study is conducted to determine the Stability of beta of banking stocks.

    Secondary Objectives

    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.

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    Source of Data:

    The data collected for the purpose of the study was secondary data. The 5 year monthly data

    of 15 banking industry stocks listed in BSE. The monthly data of 5years from 2008 to 2012

    was collected from BSEINDIA.com. The monthly closing price is used to calculate the beta.

    Bibliography:

    Websites:

    1. http://www.wikihow.com/Calculate-Beta2. http://moneyterms.co.uk/beta/beta-calculation/

    Books:

    Pandian, P. (n.d.). Security Analysis And Portfolio Management. new Delhi.

    http://www.wikihow.com/Calculate-Betahttp://www.wikihow.com/Calculate-Betahttp://moneyterms.co.uk/beta/beta-calculation/http://moneyterms.co.uk/beta/beta-calculation/http://moneyterms.co.uk/beta/beta-calculation/http://www.wikihow.com/Calculate-Beta