Chandru M K-4jn21ba026 - Report

CHAPTER -1
INTRODUCTION
1.1 INTRODUCTION TO THE PROJECT
A focused and time-bound endeavour aimed at exploring a specific business challenge or

opportunity. This project serves as an opportunity for me to apply our skills, knowledge,
and critical thinking abilities within a limited timeframe, showcasing our ability to deliver
meaningful results within a set timeline. Over the course of these six weeks, we will
immerse ourselves in the project, conduct in-depth research, analyse data, and propose
actionable recommendations.
This project offered me the chance to collaborate and effectively apply academic and
practical principles. The project was really helpful as it assisted in working well in a
globally competitive environment since it helped to learn about the principles.
A vital and dynamic component of the global financial system is the stock market. and it
plays a significant role in how money is allocated and where investment opportunities are
found. For shareholders and financial professionals, comprehension of the complexity and
fluctuations of the securities market is essential. In order to fully understand the stock
market's complexities, this project report will examine its operation, main participants,
trends, and numerous investing techniques.
A vital and dynamic component of the global financial system, the stock market has a big
impact on how money is distributed and where investment opportunities are found. For
investors and financial professionals, comprehension of the complexity and fluctuations of
the stock market is essential. This project report will look at the stock market's functioning,
key players, trends, and various investing strategies in order to completely appreciate its
intricacies.
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1.2 INDUSTRY PROFILE
1.2.1 INTRODUCTION
"Finance is the skill of effectively managing money and cash, while the monetary economy
involves the political dimension related to money. Economics, on the other hand, delves
into the interplay of financial elements like costs and interest rates with competing goods
and services. It tackles risk within financial markets, a factor crucially considered in
various investments despite potential language ambiguities.
An economic market serves as a platform where individuals exchange financial assets at

prices dictated by the interplay of supply and demand. In specific financial markets
centered on trading stocks, participants span the spectrum from individual investors to
institutional giants.
The stock market often acts as a barometer reflecting a nation's economic well-being and
progress. However, within the stock market, Prices typically deviate from their underlying
values as a result of incurred costs. Financial economists argue for market efficiency, giving
rise to the concept of the efficient market hypothesis.
The stock market, also known as the equity or share market, comprises those engaged in
buying and selling securities representing ownership stakes in companies. These securities
encompass those traded on public stock exchanges and privately traded stocks, such as
shares in private companies sold via equity crowdfunding platforms. Publicly traded
securities refer to those listed on public stock exchanges. Contemporary investment in the
stock market largely occurs through electronic trading platforms and established stock
exchanges, often guided by a strategic investment plan.
Volatility functions as a statistical metric gauging the extent to which returns on a particular
asset or market index fluctuate. For example, when the share market consistently displays
fluctuations exceeding 1%, it is deemed a 'volatile' market."
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1.2.2 EVOLUTION OF INDIA'S STOCK MARKET
The background of India's stock market spans several centuries and includes many key
changes and turning points. From its modest origins, India's stock market has increased to
become among the most important and active financial markets in the world.
The Indian stock market's evolution spans key phases. In the 18th-19th century, British
colonialism prompted shares issuance by the East India Company in Bombay (now
Mumbai). The late 19th-20th century saw the Bombay Stock Exchange (BSE) founding,
streamlining trade and enticing more investors.
Post-independence reforms (1950s-1980s) enacted the Securities Contracts Regulation

Act (SCRA) in 1956, while the beginning of SEBI in 1988 reinforced regulation. The
1990s market liberalization enhanced international accessibility, with the National Stock
Exchange (NSE) and electronic trading launching in 1992.
Technological advancements late in the 20th and into the 21st century introduced
dematerialization of shares & online trading platforms. The 21st century marked India's
economic ascent and international integration. The early 2000s introduced derivatives
trading for risk reduction, while SEBI fostered regulatory reforms for transparency and
investor safeguarding.
1.2.3 STOCK
Shares represent ownership in a specific company. When a company decides to raise capital
to finance its operations, expansion, or other activities, it can issue shares. These shares
represent a portion of ownership in the company, and individuals or entities who purchase
these shares become shareholders or stockholders.
There are specific rights that shareholders have such as Voting privileges at the annual
general meetings of the firm, the right to receive dividends (if the company distributes
profits to shareholders), and the capacity to have some of the assets of the firm if it is
liquidated. Various factors might cause the worth of share to change, including the
company's financial performance, market conditions, and investor sentiment.
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1.2.4 TYPES OF STOCKS
Investors have extremely varied aims, such as expansion or financial gain, and very
different investing timeframes. People search for equities that have the qualities they want
as a consequence. To meet this demand, stocks are categorized in accordance with their
investment characteristics. The most popular courses are included in the list below.
a) Common Stock: These signify ownership, offering voting rights and potential dividends
tied to the company's growth.
b) Preferred Stock: Providing fixed dividends, they lack voting rights but hold asset claim
priority during liquidation.
c) Growth Stocks: For companies with high growth, reinvesting profits, often with higher
price-to-earnings ratios.
d) Value Stocks: Undervalued shares with growth potential, based on strong fundamentals.
e) Dividend Stocks: Regular dividends attract investors seeking steady income.
f) Blue-Chip Stocks: Established, stable companies with growth history and dividends.
g) Small, Mid, Large-Cap Stocks: Categories based on company size.
1.2.5 RISK-RETURN RELATIONSHIPS
1. RISK: All investments entail a degree of risk. This risk can be linked to potential loss
or delays in capital repayment, loss or non-receipt of interest, or fluctuations in returns.
While certain investments, such as bank savings or government securities, are generally
considered low-risk, others inherently involve higher levels of risk.
2. RETURN: Return represents the gain or loss generated from an investment over a
specific period It is frequently stated as a proportion of the initial investment (or the
investment's current worth).. Returns can be obtained in two ways. Capital appreciation
and Income.
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1.2.6 INDIAN STOCK MARKET'S BACKGROUND
India possesses Asia's oldest stock market, tracing back to the 18th century. The East India
Company traded loans and securities during the 1830s, while informal groups conducted
business under a banyan tree. The share craze ignited in the 1860s due to the American
Civil War disrupting cotton exports.
A crucial juncture arrived in 1875 with Bombay's local share and stock agent's organization
formation. This event spurred similar bodies in Ahmadabad (1894), Calcutta (1908), and
Madras (1937).
Stock exchanges significantly impact a nation's financial health. They fuel progress and
efficiency. Previously, skepticism existed, but industries shifted the paradigm by using the
stock market for enduring financing. This aligned with investors' pursuit of returns,
transforming the market's landscape.
1.2.7 MEANING OF STOCK MARKET
The stock market is a vital component of the financial landscape, providing a centralized
platform for buying, selling, and trading shares of Publicly traded businesses and other
different financial instruments. It helps companies to raise money for development and
expansion while allowing investors to participate in the success and profits of a firm. With
various players, such as investors, traders, brokers, and regulatory agencies, working
together, The stock market is essential for capital distribution and economic growth.
Securities traded - 1.Shares 2.Derivative 3.Bonds
Key Players in the Stock Market:
• Investors
• Companies
• Stock Exchanges
• Regulatory Bodies
• Brokers and Dealers
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1.2.8 Factors Influencing Stock Prices:
a) Company Performance: The financial performance and The value of a company's

stock is significantly influenced by its prospects. Strong earnings growth and a
positive outlook can drive stock prices higher.
b) Economic Conditions: The overall health of the economy can impact the stock
market. Economic growth, inflation rates, and employment levels can influence
investor sentiment.
c) Interest Rates: Fluctuations in interest rates can affect borrowing costs for companies
and consumers, which, in turn, impact spending and investment decisions.
d) Market Sentiment: Investor emotions and perceptions about the future direction of
the market can lead to fluctuations in stock prices.
e) Geopolitical Events: Political instability, trade tensions, and global events can
instigate market uncertainty and impact stock prices.
1.2.9 FUNCTIONS OF STOCK EXCHANGE
a) Facilitating buying and selling
b) Price discovery
c) Enhancing liquidity
d) Providing transparency
e) Regulatory role
1.2.10 MAJOR STOCK EXCHANGES ARE
1. NATIONAL STOCK EXCHANGE (NSE): The National Stock Exchange of

India Limited (NSE) is a prominent stock exchange that started operating in 1994 and
quickly emerged as a leading player in the global equity market. Renowned for its high
equity market volume, - NSE is the major stock exchange in India. with a substantial client
base. Over the years, NSE has been at the forefront of technological advancements,
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introducing electronic screen-based trading in 1994, subscriber trading in 2000, and web
trading in 2004 – all pioneering initiatives in India's financial landscape. Offering a fully
integrated business model, NSE provides a comprehensive range of services, including
trade listings, trading solutions, clearing and settlement facilities, market data feeds,
technology infrastructure, and financial education offerings. Its commitment to innovation
and efficiency has earned NSE recognition and trust from investors across the globe.
OBJECTIVES OF NSE :
a. Fair and Efficient Trading: - NSE ensures smooth and transparent transactions via its
electronic trading system, building investor trust.
b. Market Integrity: Strict rules and regulations prevent market manipulation, and NSE
takes swift action against irregularities.
c. Investor Protection: NSE enforces compliance standards for listed companies and
conducts education programs for informed decisions.
d. Investor Participation: NSE offers diverse products and a conducive environment for
increased investor participation.
e. Encouraging Innovation: NSE introduces new financial products and mechanisms to

cater to changing needs and promote innovation.
2. BOMBAY STOCK EXCHANGE (BSE) : The Bombay Stock Exchange

(BSE), founded in 1875, is among the oldest stock exchanges in Asia and has been a key
contributor to India's industrial development over the past 140 years. As the world's fastest-
growing stock exchange, BSE plays a crucial for generating funds for various sectors in
the country. It has strong international partnerships with the Singapore Exchange and the
Deutsche Bourse. BSE provides reliable market data, offering investors a dependable
platform to invest in various financial instruments, including debt, mutual funds,
derivatives, and equities. The exchange actively educates investors through webinar
programs, ensuring they have access to valuable stock market knowledge. With a
commitment to serving clients worldwide and offering top-notch services, BSE remains at
the forefront of India's financial landscape.
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1.2.11 SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)
SEBI is the regulatory authority for India's securities market, established in 1988 and
legally recognized on April 12, 1992, under the SEBI Act of 1992. It oversees market
intermediaries and securities investors, and has the power to inspect exchange activities
and revoke intermediary registrations in case of corruption. SEBI is the sole authority
controlling the securities market, responsible for maintaining market integrity and
protecting investors.
OPERATIONS OF SEBI
a. SEBI protects investors' interests in the securities sector.

b. It promotes securities market growth while regulating the industry.
c. SEBI registers and regulates various professionals, including counsellors, share
transfer agents, bankers, merchant bankers, trustees, registrars, and underwriters.
d. It controls the conduct of depositories, participants, security custodians, foreign
portfolio investors, and credit rating companies.
e. SEBI prohibits insider trading and unethical business conduct related to the securities
market.
f. It ensures investors are informed about securities market intermediaries.
g. SEBI monitors significant share purchases and corporate takeovers.
h. To maintain market efficiency, SEBI handles research and development.
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OBJECTIVES OF SEBI
a. SEBI ensures fair and transparent practices to protect investors' interests in the
securities market.
b. Its primary objective is to regulate and oversee the securities market, formulating
rules, regulations, and guidelines for market integrity.
c. SEBI promotes fair practices and ethical conduct among market intermediaries and
listed companies.
d. SEBI propels securities market advancement by introducing innovative financial
instruments and platforms for improved efficiency and liquidity.
e. SEBI registers and regulates various market intermediaries, including stockbrokers,
mutual funds, and credit rating agencies.
f. It encourages more investor participation in capital market by creating a conducive
and safe investment environment.
PURPOSE FOR STOCK MARKET :
a. Stock market enables capital formation via IPOs, aiding companies in raising funds.
b. It grants investors the opportunity to invest in firms for growth and wealth creation.
c. Stock market ensures liquidity, enabling swift securities trading.
d. It allocates capital to the most productive and efficient companies.
e. Stock exchanges and regulatory authorities impose regulatory requirements and
disclosure norms for transparency.
f. This promotes good corporate governance, ensuring companies act in shareholders'
best interests.
The stock market offers business owners a platform to raise capital for their projects. It
promotes risk-taking and entrepreneurship by giving early-stage investors a means of
exiting the investment.
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1.3.1 COMPANY PROFILE
1. Larsen & Toubro Ltd. :
Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate based in

Mumbai, Maharashtra. Founded in 1938 by Danish engineers, the company started as a
civil engineering partnership and has grown into a prestigious global player. L&T operates
in diverse sectors, including engineering, construction, infrastructure, power, defence, IT,
and financial services. It is known for its involvement in major infrastructure projects in
India and abroad, contributing to the development of roads, bridges, airports, ports, and
metro systems. L&T Finance Holdings, a subsidiary, provides financial products and
services, including infrastructure financing, mutual funds, and wealth management.
Table 1.1 Information About Larsen And Toubro
Revenue ₹183234 Cr (2023)

Profit ₹ 10471 Cr (2023)
Net worth ₹89326 Cr (2023)
Market Capital ₹ 373931 Cr
Number of Employees 245677 Employees
Share Price ₹ 2649.55
Md/CEO Mr.Sekharipuram Subrahmanyan
Group Chairman A.M. Naik
Director R. Shankar Raman
Director M.V. Satish
Director S.V. Desai
(Source: - Company website)
Products, Services And Competitors
L&T offers engineering and construction services encompassing infrastructure

development, heavy machinery manufacturing, and power plant construction. L&T is a
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significant player in the information technology sector, providing IT consulting, software
development, and engineering research services. Additionally, the company is involved in
financial services, hydrocarbon industry services, urban development projects, and defence
manufacturing.
Its competitors include Tata Group, Reliance Industries, Adani Group, and Mahindra
Group, each with diverse business interests spanning energy, automotive, technology, and
more.
2. ITC Limited.
Established on August 24, 1920, the Indian Tobacco Company (ITC), originally known as
the Imperial Tobacco Company of India Limited, has grown into a diverse multinational
conglomerate.
It operates in various sectors, including fast-moving consumer products, hotels,

paperboards, packaging, agriculture, and technology. Committed to sustainability, ITC
recycles solid waste, carbon, and water. With an annual revenue of approximately US$35
billion and a market capitalization of roughly US$7 billion, In India's private sector, this
corporation is one of the major participants. ITC has been recognized as Asia's best large
company and is listed in Business Today's "Fab 50" and "India's Most Valuable
Companies." The company's achievements include being rated the sixth-largest sustainable
value producer globally among consumer product companies, as per a Boston Consulting
Group (BCG) study.
It has evolved from a singular product vendor into a conglomerate with a variety of avenues
for growth, showcasing prowess in FMCG, hospitality, paperboard, packaging, and
agribusiness. Via its wholly-owned arm, ITC Infotech India Limited, the company is
swiftly broadening its IT services. ITC's expansive networks positively impact over 6
million individuals, especially in rural India, by establishing opportunities for lasting
livelihoods. Its achievements span the zenith of FMCG marketing, dominance in India's
paperboard and packaging domain, pioneering efforts in uplifting farmers, and pioneering
responsible luxury standards in the country.
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Table 1.2 Information About ITC Ltd
Revenue ₹76518 Cr (2023)

Profit ₹ 19192 Cr (2023)
Net worth ₹ 69155 Cr (2023)
Number of Employees 36500 Employees
Share Price ₹ 470
Chairman & Md Sanjiv Puri
Executive Director Nakul Anand
Executive Director Sumant Bhargavan
Executive Director Supratim Dutta
(Source : Company website)
PRODUCT AND SERVICES AND COMPETITORS
ITC Limited, a prominent Indian conglomerate, offers a diverse array of products &
services. Its offerings span fast-moving consumer goods (FMCG) such as snacks, personal
care items, and lifestyle products, while its hospitality arm includes luxury and mid-
segment hotels under the "ITC Hotels" brand. The company is also involved in agri-
business, paperboards, paper, packaging, and information technology services.
ITC competes with powerful players like Hindustan Unilever, Nestlé India, Britannia
Industries, Dabur India, and Asian Paints across its various business sectors.
3. ASIANPAINTS :
Asian Paints Limited is a global paint business with its headquarters in Mumbai,
Maharashtra. It produces, markets, and distributes a variety of goods, including colors,
coatings, home design themes, washing fixtures, and associated services. With a sizeable
market share of 54.1% in the Indian paint business as of 2015, it is the biggest paint firm
both in Asia and India. Asian Paints Berger International, the holding company for the
business, controls it. Asian Paints' initial facility was founded in 1942 by four
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businessmen, Champaklal,Choksey, & Chimanlal Choksi, and Suryakant Dani, and Arvind
Vakil, in Mumbai (then Bombay), India. Its product line, worldwide reach, and market
dominance have grown over time. The organization's emphasis on innovation,
sustainability, and client pleasure has helped to its strong performance, making it a
prominent player in the paint industry.
Table 1.3 Information About Asian Paints
Revenue ₹ 34489cr (2023)

Profit ₹ 4106 Cr (2023)
Net worth ₹ 15992 Cr (2023)
Number Of Employees 7200 Employees
Share Price ₹ 3377
Chairman Deepak Satwalekar
Managing Director Amit Syngle
Company Secretary Rj Jeyamurugan
Vice Chairman Manish Choksi

Asianpaints company offers decorative and industrial paints, in addition related products
and services. Its decorative paints portfolio includes anumber of interior and exterior
paints, enamels, wood finishes, and wall coverings. In the industrial segment, Asian Paints
provides protective coatings, automotive coatings, and other specialized solutions. The
company is renowned for its innovation, color expertise, and commitment to sustainability.
competing against other powerful players in the industry like Berger Paints, Kansai
Nerolac, and AkzoNobel, Asian Paints has established itself as a dominant force in the paint
industry, both in India and internationally.
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4. TATA MOTORS
The largest carmaker in India by revenue is The company Tata Motors was founded in
1945. and is a component of the US$100 billion Tata group. The firm manufactures a
number of cars, trucks, buses, utility utility automobiles, and defence vehicles and operates
in several nations, including India, the UK, South Korea, Thailand, South Africa, and
Indonesia. In order to assist the government in achieving aims promoting electric mobility
in the nation, Tata Motors is actively striving to create a variety electric cars. Tata Motors
dedicated to offering smart mobility solutions for smart cities. With a significant presence
in the passenger and commercial vehicle markets,
Tata Motors has been leading the way in technical advancement and significantly
contributed to the development of India as a global centre for premium vehicle production.
In order to improve travel for future generations, Tata Motors continues to offer products
and experiences that set the market standard, all under the corporate brand identity
umbrella, Connecting Aspirations. Tata Motors Group is regarded as a key participant in
the automotive sector and has a global presence, with divisions including Tata Daewoo in
South Korea and Jaguar Land Rover in UK.
Table 1.4 Information About Tata Motors
Revenue ₹ 345967 Cr (2023)

Profit ₹ 2414 Cr (2023)
Net worth ₹ 45322 Cr (2023)
Share Price ₹ 650
Chairman Mr.Natarajan Chandrasekaran
Independent Director Mr. O P Bhatt
Independent Director Ms. Hanne Sorensen
Independent Director Ms. Vedika Bhandarkar
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Tata Motors is known for producing a wide range of vehicles, catering to both the passenger
and commercial vehicle sectors. The company's offerings include cars, trucks, buses, and
utility vehicles. Specifically for passenger cars, Tata Motors produces a diverse lineup of
cars and SUVs, ranging from compact to luxury segments. In the commercial vehicle
sector, the company manufactures trucks, buses, and other commercial vehicles used for
transportation and logistics. Tata Motors is recognized for its commitment to innovation,
sustainable mobility solutions, and safety standards.
It competes with other major automobile manufacturers like Maruti Suzuki, Hyundai,
Mahindra & Mahindra, and international brands in the Indian and global automotive
markets.
5 .INFOSYS LTD.
Infosys was founded on July 2, 1981, in Pune, India, by seven entrepreneurs: Narayana
Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S. D. Shibulal, K. Dinesh,
and Ashok Arora. They started the company with an initial investment of just $250.
In the early days, Infosys provided software development and IT consulting services to
clients in India and abroad. The company initially faced challenges but soon began to grow
steadily. 1987 Infosys shifted its headquarters from Pune to Bangalore (now Bengaluru),
Karnataka, India.1993 the company went public and was listed on the Indian stock
exchanges. The initial public offering (IPO) was oversubscribed, indicating investor
confidence in the company. In the late 1990s and early 2000s, Infosys expanded its global
footprint by establishing development centres and offices in the United States, Europe, and
other regions.
Infosys continued to evolve, emphasizing digital transformation, artificial intelligence,

cloud services, and consulting as core areas of focus.
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Table 1.5 Information About Infosys Ltd.
Revenue ₹146767 Cr (2023)

Profit ₹ 24095 Cr (2023)
Net worth ₹75407 Cr (2023)
Co-founder and Chairman Of The Nandan M.Nilekani
Board
Chief Executive Officer And Salil Parekh
Managing Director
Director Michael Gibbs
Director Bobby Parikh
Director Chitra Nayak
(Source: Company website)
PRODUCTS, SERVICES AND COMPETITORS
Infosys Limited is an Indian multinational corporation that provides a range of IT

consulting and services, including software development, system integration, and
application management. Their offerings encompass digital transformation, cloud
computing, and data analytics. Key competitors of Infosys include Tata Consultancy
Services (TCS), Wipro, and Cognizant, all of which operate in the global IT services
industry. Infosys distinguishes itself through its focus on innovation and sustainability,
often leading in areas like automation and artificial intelligence.
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6. RELIANCE INDUSTRIES LIMITED.
Reliance Industries Limited (RIL) is a Mumbai-based Indian conglomerate with diverse

business interests, including energy, petrochemicals, textiles, retail, and
telecommunications. It is the largest publicly traded company in India by market
capitalization and revenue, and it recently surpassed Indian Oil Corporation in size. With
nearly 195,000 employees, RIL is also the eighth-largest employer in India. In September
2020, it became the first Indian company to reach a market capitalization of $200 billion.
RIL's global recognition includes being ranked 96th on the Fortune Global 500 list and 8th
among the Top 250 Global Energy Companies. It remains India's largest exporter,
contributing to 8% of the country's total merchandise exports, valued at ₹1,47,755 crore,
and plays a significant role in the government's revenues through customs and excise duty.
Table 1.6 Information About Reliance Industries
Revenue ₹ 892944 Cr (2023)

Profit ₹ 66702 Cr (2023)
Networth ₹ 821153 Cr (2023)
Chairman and Managing Mukesh D. Ambani
Director
Non-Executive, Non Nita M. Ambani
Independent Director
Executive Director Hital R. Meswami
Executive Director P.M.S Prasad
Independent Director Adil Zainulbhai
(Source : Company Website)
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The company's operations encompass petrochemicals, refining, oil & gas exploration,
telecommunications, retail, and more. In the energy sector, Reliance operates refineries,
petrochemical plants, and carries out oil and gas exploration and production. In
telecommunications, its subsidiary Reliance Jio has brought significant disruption to the
Indian telecom market. Reliance Retail One of the companies in the largest retail chains
in India, covering a wide range of products. The company's ambitious endeavors into new
and emerging technologies further solidify its status as a major player.
Competing with other conglomerates like Tata Group and Adani Group, Reliance
Industries is renowned for its innovation, scale, and significant influence on various
industries in India and beyond.
7. VEDATA :
Vedanta, founded by Anil Agarwal in 1976 as a scrap metal trading business, has grown
into a leading player in India's natural resources industry.
In the 1980s and 1990s, Vedanta entered the mining sector, focusing on minerals like zinc,
lead, silver, and iron ore.
In the early 2000s, Vedanta expanded into oil and gas through the acquisition of Cairn India
Limited and strengthened its presence in aluminum and copper with acquisitions of
BALCO and Hindustan Zinc Limited.
In 2003, Vedanta underwent a major restructuring, creating Vedanta Resources Limited as

a holding company in London.
Vedanta Limited, the Indian subsidiary, was listed in 2015, allowing public investors to
participate in its growth.
Despite challenges and controversies, Vedanta remains a significant player in India's

natural resources sector with diversified operations.
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The company emphasizes sustainable practices and community development while
contributing to India's economic growth.
Table 1.7 Information About Vedanta Ltd.
Revenue ₹146767 Cr (2023)

Profit ₹ 24095 Cr (2023)
Networth ₹75407 Cr (2023)
Having a significant involvement in mining, Vedanta Resources Limited is a major global

provider of natural resources, oil & gas, metals, and power generation. Headquartered in
London, it operates with subsidiaries primarily in India. Vedanta engages in mining
minerals like iron ore, zinc, and copper, while also exploring and producing oil & gas. The
company major player in metals production and has a diverse portfolio of power
generation assets.
In competition with peers like Tata Steel and Hindalco, Vedanta's broad spectrum of
operations makes it a significant contributor to both Indian and global resource industries.
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8.HCL TECHNOLOGIES :
HCL Technologies is a well-known international provider of IT services and consulting

with its headquarters in Noida, India. HCL, which was established in 1976, has expanded
to rank among the top global suppliers of IT services. The business provides clients in
numerous sectors services, such as app development, management of infrastructure, the
space of cybersecurity, cloud computing, and digital transformation. There are some of the
finest and most well-known businesses there. HCL has developed enduring relationships
thanks to its emphasis on innovation, customer focus, and employee empowerment. HCL
has an effective presence in over 40 nations and offers value to its clients on a global scale
with a diverse workforce of knowledgeable professionals.
Table 1.8 Information About HCL Technologies
Revenue ₹146767 Cr (2023)

Profit ₹ 24095 Cr (2023)
Net worth ₹75407 Cr (2023)
HCL Technologies provides a range of services including software development,

engineering, analytics, cloud solutions, and IoT services. HCL is known for its customer-
centric approach.
Competes with major players in the IT industry like TCS, Infosys, and WiproIt significantly
affects the IT industry., offering comprehensive solutions to help businesses consider the
digital age.
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9. MAHINDRA & MAHINDRA :
Mahindra and Mahindra Limited (M&M) is a global Indian vehicle manufacturer with its
headquarters in Mumbai. Founded in 1945 as a steel trading company, it has evolved into
one of India's largest and most respected automobile companies. M&M is renowned for its
expertise in manufacturing of vehicles, including SUVs, trucks, commercial vehicles,
electric vehicles, and tractors. In India's automobile market, it is well-established. and is
renowned worldwide for its high-quality goods. With a focus on sustainability, innovation,
and customer satisfaction, M&M continues to contribute significantly to India's automotive
industry and community development initiatives.
Table 1.10 Information About Mahindra And Mahindra
Revenue ₹146767 Cr (2023)

Profit ₹ 24095 Cr (2023)
Networth ₹75407 Cr (2023)
M&M is renowned for manufacturing a diverse array of vehicles, including utility vehicles,
commercial vehicles, and tractors. Beyond automotive, the company extends its reach into
areas like technology services, financial solutions, aerospace, and renewable energy.
M&M's subsidiary, Mahindra Finance, provides various financial services, contributing to
its holistic approach.
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It competes with Tata Motors and Maruti Suzuki. In the agricultural machinery sector, it
contends with companies like TAFE and Escorts. Additionally, in the technology services
domain, it competes with firms like TCS and Infosys. Its diverse portfolio positions it in
competition with peers spanning aerospace, finance, and energy sectors.
10. HINDUSTAN UNILIVER LIMITED
Hindustan Unilever Limited (HUL) is one of India's largest and most prominent fast-
moving consumer goods (FMCG) companies. It is a subsidiary of Unilever, a British-Dutch
multinational company. HUL was established in 1933 and is headquartered in Mumbai,
India.
HUL's diverse portfolio includes a wide range of household and personal care products,
food and beverages, and cleaning agents. Some of its well-known brands include Lux,
Lifebuoy, Dove, Sunsilk, Pepsodent, Knorr, Brooke Bond, Kwality Wall's, and many more.
The company's products are widely available across India and are part of the daily lives of
millions of consumers. HUL has a strong distribution network that reaches both urban and
rural areas, making its products accessible to a wide customer base.
HUL is known for its commitment to sustainability and social responsibility. It has
undertaken various initiatives to promote environmental sustainability, water conservation,
and social welfare programs to uplift communities.
As one of India's oldest and most trusted FMCG companies, HUL continues to be a leader
in the consumer goods market, focusing on innovation, quality, and customer satisfaction.
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Table 1.9 Information About HUL
Revenue ₹146767 Cr (2023)

Profit ₹ 24095 Cr (2023)
Net worth ₹75407 Cr (2023)
HUL's portfolio covers a diverse range of products, including food, beverages, cleaning
agents, personal care, and hygiene items. The company's well-known brands include Dove,
Lux, Lifebuoy, Surf Excel, and Knorr. HUL's wide-reaching consumer products are a staple
in many households, making it a significant player in the Indian consumer goods sector.
In the competitive Indian FMCG market, HUL is up against competition from several other
businesses. like Procter & Gamble (P&G), Nestlé India, ITC, and others. HUL's extensive
distribution network, strong brand equity, and ability to adapt to changing consumer trends
have positioned it as a market leader.
23
CHAPTER – 2
CONCEPTUAL BACKGROUND AND LITERATURE REVIEW
2.1 INTRODUCTION
2.1.1 MULTI-NATIONAL CORPORATIONS (MNC’s)
The organizational structure that characterizes foreign direct investment is the

multinational corporation, which is a business with activities in many countries. This form
includes a nation of incorporation for the business as well as any overseas branches or
subsidiaries that have been established. Evidently, The scope of multinational firms'
worldwide engagement will depend on how many countries they operate in.
A major multinational organization may have hundreds of thousands of workers working

outside of its home country and may have business in 100 different countries.
2.1.2 FEATURES OF MULTINATIONAL CORPORATION
a) Global Presence: MNCs have subsidiaries, branches, or operations in multiple

countries, enabling them to carry out business globally.
b) Diverse Markets: They operate in diverse markets, catering to the needs and
preferences of consumers from different countries and cultures.
c) Cross-Border Operations: MNCs engage in cross-border trade and investment,

facilitating the flow of goods, services, and capital between countries.
d) Complex Organizational Structure: Due to their vast international operations, MNCs

often have complex organizational structures to manage and coordinate activities
across different regions.
e) Large Workforce: These companies providing work to many individuals across the
world, contributing to job creation and economic growth in multiple countries.
f) Advanced Technology and Expertise: MNCs tend to have access to advanced

technology, research, and expertise, allowing them to stay competitive and innovative
in their respective industries.
24
g) Global Brands: Many MNCs have well-known brands recognized and trusted across
the world, which adds to their market advantage.
h) Transfer of Knowledge and Skills: MNCs often transfer knowledge, skills, and best
practices between their headquarters and subsidiaries, fostering global knowledge
sharing and development.
2.1.3 TYPES OF MULTI NATIONAL CORPORATIONS
a. Global MNCs: Operate globally across multiple continents.

b. Regional MNCs: Focus on a specific region or several nearby countries.
c. Home-based MNCs: Headquarters and control are in the home country.
d. Foreign-based MNCs: operating out of many nations yet having a single country as
its headquarters.
e. Horizontal MNCs: Expand within the same industry across different countries.
f. Vertical MNCs: Engage in vertical integration, having subsidiaries at different supply
chain stages.
g. Service MNCs: Offer services like finance, technology, consulting.
h. Manufacturing MNCs: Involved in tangible goods production and distribution.
i. Ethnocentric MNCs: Centralized management from home country, may use
expatriates.
j. Polycentric MNCs: Decentralized decision-making, local managers have authority.
k. Geocentric MNCs: Global perspective, talent placed based on skills, not nationality.
2.1.4 ADVANTAGES OF MULTI-NATIONAL CORPORATION
a. Economic Growth and Job Creation:

• MNCs invest in facilities, technology, and infrastructure.
• Create employment opportunities, reducing unemployment rates.
b. Technology Transfer and Innovation:
• Introduce advanced technologies and research capabilities.
• Drive local industry improvements through knowledge sharing.
c. Increased Trade and Investment:
25
• Promote cross-border trade, economic integration.
• Encourage flow of goods, services, and capital between countries.
d. Enhanced Productivity and Efficiency:
• Bring competitive and efficient practices.
• Improve productivity and management in host countries.
e. Access to Global Markets:
• Local subsidiaries access larger international markets.
• Expand customer base, boost exports, foster diversification.
f. Infrastructure Development:
• MNCs invest in local infrastructure and facilities.
• Long-term positive impact on the host economy.
g. Knowledge and Skills Development:
• Provide training, develop skilled workforce.
• Benefit local labour market and human capital.
h. Global Brand Recognition:
• Well-known MNC brands enhance country image.
• Attract tourists, investors, improve global perception.
i. Foreign Exchange Earnings:
• MNC profits contribute to foreign exchange reserves.
• Strengthen host country's balance of payments.
2.1.5 Disadvantages of Multinational Corporations:
a) Exploitation of Labor: In some cases, MNCs may take advantage of cheaper labour
in host countries, leading to Low pay, bad working conditions, and violations of
labour laws. This can contribute to labour exploitation and human rights abuses.
b) Environmental Degradation: MNCs may engage in practices that result in

environmental degradation, such as pollution, deforestation, and unsustainable
resource extraction. This can harm local ecosystems, wildlife, and communities,
leading to long-term environmental consequences.
c) Tax Avoidance and Evasion: Some MNCs use complex financial structures and tax
loopholes to minimize their tax liabilities, resulting in reduced tax revenue for both
26
home and host countries. This can lead to an unequal distribution of the tax burden
and reduced funding for essential public services.
d) Economic Dependence: Host countries that heavily rely on MNCs for economic
growth may become overly dependent on these corporations, making them
vulnerable to changes in global market conditions or corporate decisions.
e) Market Domination: The competition may be stifled by MNCs with strong market
strength. and limit opportunities for local businesses, leading to reduced market
diversity and innovation.
f) Cultural Homogenization: The global expansion of MNCs can lead to cultural

homogenization, where local cultures and traditions are overshadowed by dominant
global brands and products, eroding cultural diversity.
g) Health and Safety Concerns: Some MNCs may not adhere to the same health and
safety standards in host countries as they do in their home countries. This can
jeopardize the well-being of workers and consumers in the host country.
2.2 STOCK MARKET VOLATILITY
The degree of change or variance in stock prices over a certain time period is referred to as
market volatility. Standard deviation is a regularly used statistical measure of dispersion.
While low volatility suggests stability and few price changes, high volatility means that
stock prices swing abruptly and frequently.
2.2.1 Factors Affecting Indian MNC Stock Market Volatility
Several factors contribute to the volatility stocks in the stock market:
a. Macroeconomic Indicators:
a. GDP growth, inflation, interest rates, and exchange rates impact MNC stocks.
b. Economic uncertainty leads to higher volatility.
b. Global Economic Conditions:
a. Global economy, geopolitics, trade affect Indian MNC stocks.
b. Changes abroad cause increased volatility.
27
c. Industry-Specific Factors:
a. Demand, supply changes, tech advancements, regulations impact stocks.
b. Industry shifts contribute to stock price fluctuations.
d. Financial Performance:
a. Revenue, profitability, debt, cash flow influence stock prices.
b. Strong performance stabilizes; weak results lead to volatility.
e. Investor Sentiment:
a. Market sentiment, psychology drive stock volatility.
b. Positive news boosts prices, negative sentiment causes declines.
f. Corporate Governance:
a. Good governance builds trust, poor governance increases uncertainty.
b. Governance practices impact stock stability.
g. Risk and Volatility:
a. Geopolitical risks, currency fluctuations, regulations increase volatility.
b. Higher volatility indicates perceived risk.
h. Regulatory Environment:
a. Changes in regulations impact MNCs' financials, stock volatility.
b. Alterations in policies influence market dynamics.
i. Market Liquidity:
a. Liquidity affects stock price swings.
b. Low liquidity leads to larger price fluctuations.
28
2.3 LITERATURE REVIEW
1) Dr Mayur Rao, Somiyadharia, Nidhi Solanki (2022): Dr. Mayur Rao,

Somiyadharia, Nidhi Solanki (2022) imparts fundamental stock market knowledge
to novice investors or students interested in the stock market. The study addresses
factors directly or indirectly impacting the market, aiming to enlighten potential
investors about market developments and investment insights. Goals encompass
understanding investor perspectives, views on the stock market, and factors
influencing share purchases.
2) Roni Bhowmik and Shouyang (2020): Roni Bhowmik and Shouyang (2020) delve
into the significant area of analyzing stock market returns and volatility, utilizing
GARCH type models to capture intricate market dynamics. The study highlights the
expanding availability of researchable data and computational capabilities that have
led to extensive research on volatility and returns in financial markets.
3) Dipankar Biswas and Swapan Sarkar (2020): Dipankar Biswas and Swapan
Sarkar (2020) employ ARMA EGARCH methods to explore the intricacies of return
dynamics across various market indexes. The study reveals the efficacy of a well-
chosen conditional mean model in reflecting return dynamics, particularly during
specific time periods. The work modestly addresses volatility with relation to the
Indian stock market.
4) Dr.SONALI YADAV (2019): Explores the evolving weak form efficiency of the
Indian stock market. Upon successfully passing various tests encompassing
normality, randomness, stationarity, and equality of variances, findings demonstrate
the influence of earlier prices on current ones, conveying significant information.
Leveraging this insightful data allows astute individuals to gain control over the
market, potentially yielding above-average gains. The study's application of unit root
testing on high-frequency data from developing markets contributes to the existing
body of research.
5) M. Senthil Mathi, S. Ponmuthumari (2019): In their study, M. Senthil Mathi and

S. Ponmuthumari (2019) advocate the partial utilization of gains while saving the
29
balance to meet future expenses. Investment pace correlates with the nation's
infection rate, where higher infection rates necessitate increased investment to
enhance one's quality of life. Central to prudent investing is the selection of
appropriate investment avenues and diversification strategies.
6) R.Sindhu AND Dr.K.Soundararajan (2019): The study by R.Sindhu and

Dr.K.Soundararajan (2019) underscores change as an inherent characteristic of stock
markets, driven by a multitude of factors. An important macroeconomic influencer
is the exchange rate between the Indian rupee and the US dollar. The study seeks to
understand the link between stock market movement and exchange rate influence,
considering various market types.
7) Sushma K S, Charithra C M and Dr. Bhavya Vikas (2019): The study conducted
by Sushma K S, Charithra C M, and Dr. Bhavya Vikas (2019) emphasizes
prediction's significance in the volatile securities market. Evaluating both risk and
return is essential for optimizing investment decisions. The research assesses risk
and return for NSE-listed financial services companies, with a secondary focus on
pre- and post-demonetization stock volatility.
8) Gautami and Nalla Bala Kalyan (2018): The study by Gautami and Nalla Bala
Kalyan (2018) is a comparative exploration of risk and return analysis among
selected Indian stocks. The research investigates share price variation, associated
risks, and offers a comparison of Asian Paints, Dabur India, Panyam, and Bharati
Airtel. Utilizing sources like historical and current statistics, the study employs
metrics such as average return and standard deviation.
9) Suresh and Sai Prakash (2018): The study conducted by Suresh and Sai Prakash
(2018) entails a comparison of risk-return analysis between public and private sector
banks listed on the Bank Nifty index. Analyzing a 12-month period in 2016, the
study selects 12 stocks from the NSE's Bank Nifty list. Leveraging secondary data
sources including NSE website, newspapers, journals, and publications, the study
examines the performance of bank stocks and offers insights for investment
decisions.
30
10) SAMEER YADAV (2017): underscores that volatility, a statistical gauge of return
dispersion, holds vital significance in assessing market dynamics. Generally, riskier
securities exhibit heightened volatility. Volatility estimation carries essential
implications for multiple market participants. Developed markets consistently offer
superior long-term returns with minimal volatility. In contrast, the Indian market has
increasingly embraced informational efficiency. The research facilitates readers'
comprehension of historical, present, and prospective facets of the Indian stock
market.
11) KLAUS ADAM, ALBERT MARCET, and JUAN PABLO NICOLIN (2016):
Show that little variations from rational expectations can lead to realistic levels of
stock price volatility within consumption-based asset pricing models. Rational
investors with arbitrary price behaviour ideas lead to increased stock price velocity
and mean reversion, with statistical analyses supporting the model's predictions.
12) Mohd Fasi and Mohammed Siraj (2016): Mohd Fasi and Mohammed Siraj (2016)
observe a surge in competition within the Investment Sector since its inception.
Contemporary market dynamics reflect a heightened awareness of new investment
opportunities promising superior growth and tax benefits. Previously popular
investment avenues, such as fixed deposits, Kisan Vikas Patra, and savings accounts,
have been supplanted by investments in stocks, ULIPs, mutual funds, commodities,
real estate, and other appealing alternatives.
13) . Robert F. Engle, Eric Ghysels, and Bumjean Sohn (2013): The study by Robert
F. Engle, Eric Ghysels, and Bumjean Sohn (2013) introduces a novel class of
component volatility models, combining insights from spline GARCH and MIDAS
filters. This innovative approach facilitates the identification of short- and long-term
sources of volatility, connecting them to economic factors. The study focuses on
lengthy historical time series, leveraging the GARCH-MIDAS model class to handle
diverse macroeconomic variables.
31
14) R. Venkataramani (1994): Employs Fundamental Analysis and Technical Analysis
to assess the value of specific stocks within a portfolio context. Fundamental
analysis involves evaluating whether an investment should be bought, sold, or held
by comparing its intrinsic value to current market prices, with industry, economic,
and firm fundamentals underpinning a security's worth.
15) Sunil Bamodar (1993): highlights the part of "derivatives," particularly "futures,"
as tools for managing short-term risk. Derivatives have evolved into essential tools
for financial management seeking to control or mitigate portfolio risk. The study
underscores the utility of "financial futures" in risk management, particularly in the
short term.
16) Pyare Lal Singh (1993): characterizes the Indian Capital Market as a reliable
conduit for funding, aggregating savings from diverse economic sectors, including
households, government entities, and private corporations. The study underscores
the market's growth, increased investor participation, and the evolving financing
landscape.
17) Jawahar Lal (1992): Presents a comprehensive profile of Indian investors,

exploring their familiarity with and utilization of financial information. The study
underscores a gap between information provided by firms and individual investors'
requirements, particularly in comprehending Annual Reports and statements.
18) Nabhi Kumar Jain (1992): Outlines specific guidelines for purchasing, holding,
and selling shares. He advises investors to target firms expanding within burgeoning
sectors and suggests divesting shares upon the firm's peak growth. The study
emphasizes individual evaluation when acquiring or selling high-value shares.
19) L. C. GUPTA (1992): Identifies pervasive speculation in the Indian stock market,
manifesting through concentrated market activity in select shares and elevated
trading velocities of speculative counters. Excessive short-term speculation may
lead to "artificial prices" unsupported by fundamental factors such as earnings,
dividends, or financial strength. Such artificially inflated values are prone to
eventual decline, as history has demonstrated.
32
20) Panda (1980): In a historical analysis, Panda (1980) delves into the evolution of
stock markets before and after India's independence. The study illustrates a
democratization of securities investing, transcending social classes and attracting a
diverse range of individuals from lower and middle-income segments.
33
CHAPTER – 3
RESEARCH DESIGN
3.1 Statement of The Problem
Indian multinational companies (MNCs) have significantly impacted the Indian economy
and have emerged as important actors on the international stage. These MNCs' stock Prices
change as a result of listed on the stock market, which causes volatility. The issue statement
intends to address the elements causing stock market volatility, especially for Indian
multinational corporations, and its effects on investors and the wider financial system.
3.1.1 Problem Statement:
Understanding and analysing the factors that contribute to stock market volatility for Indian
MNCs and the difficulties it presents for stakeholders and investors constitute the problem
at hand. This entails looking into the variables that influence the stock price volatility of
Indian MNCs and the effects of such volatility on investment choices, risk management,
and market sentiment.
a. Volatility Drivers Identification: Identify key factors impacting volatility, including

macroeconomic indicators, global conditions, industry specifics, financial
performance, investor sentiment, and regulatory changes.
b. Quantify Volatility and Risk: Analyse historical patterns, standard deviations, and
correlations to measure volatility and associated risks.
c. Investment Impact: Evaluate how volatility influences investor decisions, risk
appetite, and portfolio management for Indian MNCs.
d. Risk Management Strategies: Explore effective risk management techniques like
hedging, diversification, and risk mitigation for both investors and Indian MNCs.
e. Market Sentiment and Economic Effects: Examine how MNC stock volatility
affects market sentiment, other sectors, and overall investor confidence.
34
f. Policy Implications: Consider regulatory measures to enhance transparency,
corporate governance, and stock market stability in response to MNC-related
volatility.
3.2 Need For The Study
➢ Understanding Risk Exposure: Indian MNCs are major players in the global
market and have substantial exposure to international economic and geopolitical
risks. The possible dangers these firms may face and their effects on total
portfolio risk for investors will be identified with the use of an analysis of stock
market volatility.
➢ Investor Decision-Making: Investors, both domestic and international, consider

stock market volatility as a critical factor when making investment decisions. A
comprehensive Investors will learn about the risk-return profile of Indian MNC
stocks through the study. and aid in making informed investment choices.
➢ Impact on Financial Stability: Volatility in Indian MNC stocks can have

repercussions on the overall financial stability of the country. Studying the
factors contributing to volatility will help regulators and policymakers devise
appropriate measures to safeguard the financial system from excessive
fluctuations.
➢ Risk Management Strategies: Understanding the sources of volatility will enable

Indian MNCs to implement effective risk management strategies. This includes
hedging techniques, diversification, and other risk mitigation measures to protect
against adverse market movements.
➢ Corporate Governance: Stock price volatility can occasionally be connected to

problems with company transparency and governance. The study can highlight
how crucial it is for Indian MNCs to have sound corporate governance
procedures in order to boost investor trust and lessen stock price swings.
35
➢ Market Sentiment: Volatility in Indian MNC stocks can influence overall market
sentiment. A thorough investigation will reveal how the outcome of these
equities is impacted by market sentiment. and, in turn, impacts market dynamics.
➢ Policy Formulation: The study's findings can guide policymakers in formulating

appropriate regulations and policies to foster a stable and efficient stock market
environment. This may include measures to enhance market transparency,
improve reporting standards, and promote investor protection.
3.3 Objectives
➢ To evaluate the risk and return of particular MNC enterprises
➢ To understand the relationship between risk and return for particular MNCs
➢ To ascertain the variance and standard deviation of particular MNC’s firms
➢ To choose the best investment from a selected group of companies.
3.4 Scope of The Study
➢ The research should include gathering historical stock market information for
Indian MNCs, such as stock prices, trade volumes, and pertinent financial
indicators during volatile market times.
➢ Assess the financial success of Indian multinational corporations amid erratic

market conditions. Assess how revenue, profitability, and other financial metrics
were affected during periods of high and low volatility.
➢ Study the behaviour of investors in the Indian stock market concerning MNC stocks
during volatile periods. Examine the patterns of buying and selling and determine
whether investor sentiment significantly influences MNC stock prices.
➢ Look at the risk management techniques Indian MNCs use to lessen the effects of
stock market volatility. Recognize the variations in these techniques between
industries and businesses.
36
➢ Examine the impact of stock market volatility on Indian MNCs' international
operations. Think about how market fluctuations affect international commerce and
currency exchange rates.
3.5 Research Gap
The first is that there is a glaring depth study on the particular characteristics of stock
market volatility with relation to Indian MNCs. While there are several studies on volatility,
they tend to focus domestic companies or MNCs from other countries, creating a gap in
our understanding of the unique traits and complexities of Indian MNCs in connection to
stock market volatility.
The second unresolved issue is understanding how domestic and international

macroeconomic factors interact to affect the stock market volatility of Indian multinational
corporations. The research hasn't yet delved further into the effects of variables like
exchange rate fluctuations and geopolitical upheaval., and local economic indicators
interact to impact how volatile these MNCs' stocks are.
3.6 Research Methodology
The procedure utilized to gather information and facts in order to make judgments about
their actions. Secondary data were used in this investigation. When conducting a systematic
study Secondary research is a well-liked A method that solely relies on pre-existing data
that has been previously collected.. These data samples must be arranged, collected, and
analysed according to this study design in order to draw reliable results. Data are gathered
using many methods, including website, journal, newspaper, and other publication
research, interviews, surveys, and other research approaches, and they can include both
current and historical information.
Research Design
The study uses descriptive research, including data acquired from several stock markets.
37
Statement of The Problem
It is clear from reading the many publications on risk and return management that there
hasn't been any new research on risk and return management in Indian MNCs. I will thus
consider 10 different international firms in my analysis.
Period For The Study
The analysis spans a five-year period, from 2018–19 to 2022–2023 for certain
commodities. The BSE/NSE has provided the data for collection.
TOOLS FOR ANALYSIS :
For analysis and interpretation, the gathered data was tabulated and subjected to a variety
of portfolio management strategies.
➢ TABULAR PRESENTATION
➢ PERCENTAGE ANALYSIS
➢ GRAPHICAL REPRESENTATION
SOURCES OF DATA
The current analysis only employs secondary data, which includes details on the trading
activity of the chosen commodities and daily stock market indexes. The information was
gathered from a variety of sources, including stock market Sensex data and journals,
reports, periodicals, and newspapers.
COLLECTION OF DATA
The NSE website served as the main source of secondary information for this investigation.
(https://www.nseindia.com/). Additionally, Publicly available sources were used to acquire
the data, websites, newspapers (such as the Economic Times), reports by management,
academics, and researchers, among other places, including MoneyControl.com.
The following MNC firms were chosen from the NSE (national stock exchange) and the
data collected includes their starting price, closing price, and dividend. Five years' worth
of the firms' historical data are used in the data analysis.
38
List of Companies Selected From NSE
1. L&T
2. ITC
3. ASIANPAINTS
4. TATA MOTORS
5. INFOSYS LTD..
6. RELIANCE INDUSTRIES
7. VEDANTA
8. HCL TECHNOLOGIES
9. MAHINDRA & MAHINDRA
10. HUL LIMITED
3.7 Limitations of The Study
➢ The research only lasted a total of five years, so it's a short period of time.
➢ In this investigation, only secondary information were used.
➢ Since various specialists have varied perspectives on the examination of equity

shares, the viewpoint adopted in this research cannot be regarded as the only correct
and ideal one.
3.8 Hypothesis
1. Hypothesis :Financial Performance Affects Volatility

Null Hypothesis (H0): The stock market volatility of Indian multinational corporations has
no discernible impact on their financial performance. Alternative Hypothesis (H1): The
financial performance of Indian MNCs significantly affects their stock market volatility.
2. Hypothesis : Global Economic Conditions Influence Volatility
Null Hypothesis (H0): Global economic conditions do not have a significant impact on the
volatility of Indian MNC stocks.
Alternative Hypothesis (H1): Global economic conditions significantly influence the
volatility of Indian MNC stocks.
39
3. Hypothesis : Investor Sentiment Drives Volatility
Null Hypothesis (H0): Investor sentiment is not a significant effect on the volatility of
Indian MNC stocks.
Alternative Hypothesis (H1): Investor sentiment significantly drives the volatility of Indian
MNC stocks.
3.9 CHAPTER SCHEME
CHAPTER CHAPTER TITLE AND BRIEF CONTENT
1 INTRODUCTION
This chapter includes details about the company's Promoters, Vision,
Mission, and Quality Policy as well as a Framework for the Industry and
Company Profile. Products that the firm produces, its geographic reach, its
rivals, a SWOT analysis, and its financial statements.
2 CONCEPTUAL BACKGROUND AND LITERATURE REVIEW
This chapter offers details on the theoretical underpinnings of
VOLATILITY ON INDIAN MNC and reviews literature by various
writers of the study.
3 RESEARCH DESIGN
The specifics of the study's design are provided in this chapter. It
comprises the Problem Statement, the Need for the Study, the Study's
Scope, the Research Methodology Used, and the Study's Limitations.
4 ANALYSIS AND INTERPRETATION
This chapter examines the influence of stock market volatility of Ten
mnc’s and provides an analysis of the collected financial and non-financial
data using the relevant graphs and tables.
5 FINDINGS, CONCLUSION AND SUGGESTION
The general overview of the research is included in this chapter. It also
provides the study's findings, conclusions, and recommendations for
potential improvements to the business.
( Source : VTU Source)
40
CHAPTER – 4
ANALYSIS AND INTERPRETATION
4.1 COMPANIES RISK AND RETURN ANALYSIS
1. LARSEN AND TOUBRO
Data from past years' opening, closing, and dividend prices has been collected.
The method used to calculate the return [R=D+(P1-PO)/PO*100]
Table 4.1.1 Computation of The Return of The Company Larsen And

Toubro India Ltd..
Year Opening price(₹) Closing Price(₹) Dividend(₹) Returns (%)

2018-19 1313 1386.70 16 6.83
2019-20 1390.10 798.65 18 -41.25
2020-21 806.85 1423.55 16 78.42
2021-22 1432 1773.60 18 25.11
2022-23 1759 2147.45 22 23.33
Total Return = 92.44
(Source: Finance.yahoo.com)
INTERPRETATION
The returns of L&T have been computed and are shown in Table (4.1.1) above. When
comparing the returns from 2018-19 the investment showed a positive return of 6.83%, in
the year 2019-20 The investment experienced a significant negative return of -41.25%,
indicating a substantial loss in value. In the year 2020-21, The investment continued to
perform well, with a positive return of 78.42% and in the year 2021-22 gives a positive
return of 25.11%,in the year 2022-23 maintained its positive performance, yielding a return
of 23.33%.
41
Table 4.1.2 Computation of Expected Return And Expected Risk
of Larsen And Toubro India Ltd..
Returns (%) Expected Return-Expected (R-Expected

return (%) return (%) return)2
6.83 18.49 11.66 135.96
-41.25 18.49 -59.74 3568.87
78.42 18.49 59.93 3591.60
25.11 18.49 6.62 43.82
23.33 18.49 4.84 23.43
∑(r-expected return)2 = 7363.68
(Source – Table 4.1.1)
VARIANCE ( 7363.68/5) 1472.74
Expected Return = Return of all the Individual 18.49

year ÷ N ( Number of years)
STANDARD DEVIATION( √1472.74) 38.38
INTERPRETATION
Table 4.1.2 shows that the expected Return is less and the risk is around one time greater.
42
Table 4.1.3 Volatility
VOLATILITY
YEAR PRICE (₹) VOLATILITY (%)
2018-19 1386.70 -
2019-20 798.65 -42.40
2020-21 1423.55 78.24
2021-22 1773.60 24.59
2022-23 2147.45 21.08
Volatility of L&T INDIA

100
78.24
80
60
Percentage
40 24.59 21.08
20
0
0
-20 2018-19 2019-20 2020-21 2021-22 2022-23
-40
-60 -42.4
Year
Volatility
(Source : Table 4.1.3) GRAPH 4.1
By the above we can determine volatility varied significantly from year to year. It
experienced both negative and positive volatility, indicating fluctuating market conditions
and potential risks for investors. High volatility may imply the need for cautious decision-
making and risk management strategies.
43
2. ITC INDIA
Data from past years' opening, closing, and dividend prices has been collected
The method used to calculate return [R=D+(P1-PO)/PO*100]
Table 4.2.1 Computation of The Return of ITC India Ltd.
2018-19 257 300 5.15 18.74
2019-20 297 159.20 5.75 -44.46
2020-21 171.70 214.55 15.15 33.78
2021-22 220 249.20 11 18.27
2022-23 250 382.75 12.25 58.00
INTERPRETATION
The returns of ITC have been computed and are shown in Table (4.2.1) above. When
comparing the returns from 2018-19 in the year 2018-19 The investment showed a positive
return of 18.74%, in the year 2019-20 experienced a significant negative return of -44.46%,
in the year 2020-21 rebounded strongly, generating a positive return of 33.78%. in the year
2021-22 investment continued to perform well, with a positive return of 18.27%.in the year
2022-23 maintained its positive performance, yielding a return of 58.00%.
44
Table 4.2.2 Computation of Expected Return And Expected Risk of ITC
India Ltd.
RETURNS EXPECTED R-EXPECTED (R-EXPECTED

(%) RETURN (%) RETURN (%) RETURN)2
18.74 16.87 1.89 3.57
-44.46 16.87 -61.33 3761.37
33.78 16.87 16.91 285.95
18.27 16.87 1.4 1.96
58 16.87 41.13 1691.68
∑(R-Expected return)2 = 5744.53
( Source: Finance.yahoo.com)
VARIANCE (5744.53/5) 1148.90

STANDARD DEVIATION 33.90
( √𝟏𝟏𝟒𝟖. 𝟗𝟎))
( Source: Table 4.2.2)
INTERPRETATION
Table 4.2.2 shows that the expected Return is less and the risk is around one time greater.
45
Table 4.2.3 Computation of Volatility
VOLATILITY
YEAR PRICE(₹) VOLATILITY (%)
2018-19 300 0
2019-20 159.20 -46.93
2020-21 214.55 34.76
2021-22 249.20 16.15
2022-23 382.75 53.59
Volatility of ITC
60 53.59
40 34.76
16.15
20
Percentage
0
0
2018-19 2019-20 2020-21 2021-22 2022-23
-20
-40
-60 -46.93
Year
Volatility
( Source : Table 4.2.3) GRAPH 4.2
46
3.ASIAN PAINTS
The method used to calculate return [R=D+(P1-PO)/PO*100]
Table 4.3.1 Computation of The Return Of The Asian Paints Ltd.
2018-19 1120.4 1497 8.9 34.40
2019-20 1496.75 1666.5 11 12.07
2020-21 1650.05 2537.4 12 54.50
2021-22 2532 3079.95 18.15 22.36
2022-23 3110 2770.5 19.9 -10.28
Interpretation
The returns of Asian Paints have been computed and are shown in Table (4.3.1) above.
When comparing the returns from 2018-19 in this year the investment showed a positive
return of 34.40%, in the year 2019-20 experienced a significant positive return of 12.07%,
indicating a substantial profit in value. In the year 2020-21, The investment continued to
perform well, with a positive return of 54.04%.in the year 2021-22 the return given positive
return of 22.36%, in the year 2022-23 maintained its Negative performance at return of -
10.28 %.
47
Table 4.3.2 Computation of Expected Return And Expected Risk Of
Asian Paints Ltd.
EXPECTED R-EXPECTED (R-EXPECTED

RETURNS (%)
RETURN (%) RETURN (%) RETURN)2
34.40 22.61 11.80 139.24
12.07 22.61 10.53 110.88
54.50 22.61 31.89 1016.97
22.36 22.61 0.25 0.0625
-10.28 22.61 -32.89 1081.75
Variance ( 2348.90/5) 469.78

Standard Deviation (√𝟒𝟔𝟗. 𝟕𝟖) 21.67
( Source : Table 4.3.2)
INTERPRETATION
Table 4.3.2 shows that the expected Return is more and the risk is less than the return.
VOLATILITY
2018-19 1497 0
2019-20 1666.5 11.32
2020-21 2537.4 52.26
2021-22 3079.95 21.38
2022-23 2770.5 -10.05
48
Volatility of ASIAN PAINTS
60 52.26
50
40
Percentage
30 21.38
20 11.32
10
0
0
-10 2018-19 2019-20 2020-21 2021-22 2022-23
-10.05
-20
Year
Volatility
(Source : 4.3.3 ) GRAPH 4.3
making and risk management strategies
4. TATA MOTORS :
49
Table 4.4.1 Computation of The Return of The Company TATA
MOTORS Ltd.
Year Opening price (₹) Closing Dividend(₹) Returns

Price(₹) (%)
2018-19 335 170.55 0 -49.09
2019-20 176.35 71.05 0 -59.71
2020-21 70.05 301.8 0 330.84
2021-22 306.75 433.75 0 41.40
2022-23 434 409.2 0 -5.71
Interpretation
The returns of TATA Motors have been computed and are shown in Table (4.4.1) above.
When comparing the returns from 2018-19 in the year 2018-19 The investment
experienced a significant negative return of -49.09%, and in the year 2019-20 encountered
an even more substantial negative return of -59.71%, in the year 2020-21 made an
impressive recovery, generating a positive return of 330.84%,in the year 2021-22 continued
to perform well, with a gain of about 41.40% in the year 2022-23 Investors experienced a
small loss of about 5.71%.
50
Table 4.4.2 Computation of Expected Return and Expected Return of
TATA MOTORS INDIA Ltd..

RETURNS(%)
(
-49.08 51.54 100.63 10126.40
-59.71 51.54 111.25 12376.56
330.84 51.54 279.29 78002.90
41.40 51.54 10.14 102.82
-5.71 51.54 57.25 3277.56
∑(R-Expected return)2 = 103886
Source : Table 4.4.2)
Variance ( 103886/5) 20777

Standard deviation 144.14
(√20777)
INTERPRETATION
Table 4.4.2 shows that the expected Return is less and the risk is three times more than the
return.
51
VOLATILITY
YEAR PRICE (₹) VOLATILITY(%)
2018-19 170.55 0
2019-20 71.05 -58.34
2020-21 301.8 324
2021-22 433.75 43.72
2022-23 409.2 -5.66
Volatility of TATA Motors

350 324
300
250
200
Percentage
150
100
43.72
50
0
0
-50 2018-19 2019-20 2020-21 2021-22 2022-23
-5.66
-100 -58.34
Year
Volatility
( Source : Table 4.4.1) GRAPH 4.4
making and risk-management strategies.
52
5.INFOSYS Ltd. :
Table 4.5.1 Computation of The Return of The Company Infosys India

Ltd.
Year Opening price (₹) Closing Price (₹) Dividend(₹) Returns (%)
2018-19 570.5 737.8 12 31.43

2019-20 742 641.5 30.50 -9.43
2020-21 634.35 1368.05 26 119.76

2021-22 1380 1906.85 30 40.35
2022-23 1886.85 1383.55 32.50 -24.95
Interpretation
The returns of Infosys Ltd. have been computed and are shown in Table (4.5.1) above.
When comparing the returns from 2018-19 the investment showed a positive return of
31.43%, in the year 2019-20 The investment experienced a significant negative return of -
9.43% indicating a substantial loss in value. In the year 2020-21, The investment continued
to perform well, with a positive return of 119.76% and in the year 2021-22 gives a positive
return of 40.35% in the year 2022-23 made a Negative return of -24.95 %.
53
Table 4.5.2 Computation Of Expected Return And Expected Risk Of
Infosys India Ltd.

(%) RETURN (%) RETURN (%) RETURN)2
31.43 31.43 0 0
-9.43 31.43 40.86 1669.54
119.76 31.43 88.33 7802.19
40.35 31.43 8.92 79.57
-24.95 31.43 56.38 3178.70
∑(R-Expected return)2 = 12730
(Source-Table 4.5.1)
VARIANCE ( 12730/5) 2546
STANDARD DEVIATION (√2546) 50.46
INTERPRETATION
Table 4.5.2 shows that the expected Return is less and the risk is more than the return.
54
Table 4.5.3 Computation of volatility
VOLATILITY
YEAR PRICE (₹) VOLATILITY(%)
2018-19 737.8 0
2019-20 641.5 -13.05
2020-21 1368.05 113.26
2021-22 1906.85 39.38
2022-23 1383.55 -27.44
(Source – table 4.5.1)
Volatility of Infosys
150
113.26
100
Percentage
50 39.38
0
0
2018-19 2019-20 2020-21 2021-22 2022-23
-13.05
-50 -27.44
Year
Volatility
(Source - Table 4.5.3) GRAPH 4.5
making and risk-management strategies
55
6. RELIANCE INDUSTRIES LIMITED.
Table 4.6.1 Computation of The Return Of The Company Reliance

Industries Limited.
Year Opening Closing Dividend(₹) Returns

price(₹) Price(₹) (%)
2018-19 884.61 1347.23 5.94 52.78
2019-20 1357.14 1103.29 6.43 -18.23
2020-21 1111.71 2003.1 6.5 80.77
2021-22 2018 2634.75 7 30.91
2022-23 2636 2234.7 8 -14.92
Total Return =131.31
Interpretation
The returns of Reliance industries have been computed and are shown in Table (4.6.1)
above. When comparing the returns from 2018-19 the investment showed a positive return
of 52.78%, in the year 2019-20 The investment experienced a significant negative return
of -18.23%, indicating a substantial loss in value. In the year 2020-21, The investment
continued to perform well, with a positive return of 80.77% and in the year 2021-22 gives
a positive return of 30.91 %,in the year 2022-23 maintained its negative performance,
yielding a return of -14.92%.
56
Table 4.6.2 Computation of Expected return and Expected risk
of reliance industries limited.
RETURNS EXPECTED R-EXPECTED RETURN (R-EXPECTED

(%) RETURN (%) (%) RETURN)2
52.78 26.26 26.52 703.31
-18.23 26.26 -44.49 1979.36

80.77 26.26 54.51 2971.34
30.91 26.26 4.65 21.62
-14.92 26.26 -41.18 1695.79
VARIANCE ( 7371.42/ 5) 1474.28

( √𝟏𝟒𝟕𝟒. 𝟐𝟖)
INTERPRETATION
Table 4.6.2 shows that the expected Return is less and the risk is greater.
Table 4.6.3 VOLATILITY
VOLATILITY
VOLATILITY
YEAR PRICE (₹)
(%)
2018-19 1347.23
2019-20 1103.29 -18.11
2020-21 2003.1 81.56
2021-22 2634.75 31.53
2022-23 2234.7 -15.18
57
Volatility of Reliance Industries
100
81.56
80
60
Percentage
40 31.53
20
0
0
2018-19 2019-20 2020-21 2021-22 2022-23
-20
-18.11 -15.18
-40
Year
Volatility
(Source – Table 4.6.3) GRAPH 4.6
58
7. VEDANTA
Table 4.7.1 Computation of the Return of the Company Vedanta

Limited.
2018-19 284 178.05 18.85 -30.66901408
2019-20 187.4 64.7 3.9 -63.39381003
2020-21 65 228.75 9.5 266.5384615
2021-22 229.25 403.35 58.5 101.4612868
2022-23 405.3 281.75 81 -10.49839625
Interpretation
The returns of Vedanta have been computed and are shown in Table (4.7.1) above. When
comparing the returns from 2018-19 the investment showed a negative return of -30.67%,
in the year 2019-20 The investment experienced a significant negative return of -63.39%,
indicating a substantial loss in value. In the year 2020-21, The investment continued to
perform well, with a positive return of 266.54% and in the year 2021-22 gives a positive
return of 101.46%, in the year 2022-23 maintained its negative performance, yielding a
return of -10.49%.
59
Table 4.7.2 Computation of Expected return and Expected risk of
Vedanta limited.
RETURNS EXPECTED R-EXPECTED (R-EXPECTED RETURN)2

(%) RETURN (%) RETURN (%)
-30.66 52.68 -83.34 6945.56
-63.39 52.68 -116.07 13472.24

266.54 52.68 213.86 45736.09
101.46 52.68 48.78 2379.49
-10.49 52.68 -63.18 3991.71
VARIANCE ( 72525.09/5) 14505.02

(√𝟏𝟒𝟓𝟎𝟓. 𝟎𝟐)
(Source- Table 4.7.2)
INTERPRETATION
Table 4.7.2 shows that the expected Return is less and the risk is one time greater.
VOLATILITY
2018-19 178.05
2019-20 64.7 -63.66
2020-21 228.75 253.55
2021-22 403.35 76.33
2022-23 281.75 -30.15
60
Volatility of Vedanta Limited
300 253.55
250
200
Percentage
150
100 76.33
50
0
0
-50 2018-19 2019-20 2020-21 2021-22 2022-23
-30.15
-100 -63.66
Year
Volatility
8.HCL TECHNOLOGIES.
61
Table 4.8.1 Computation of the return of the Company HCL Technologies
Year Opening price (₹) Closing Price(₹) Dividend(₹) Returns(%)
2018-19 483.15 541.45 4 12.89
2019-20 545 436.4 5 -19.01
2020-21 433 982.65 12 129.71
2021-22 992 1163.75 36 20.94
2022-23 1161 1067.5 48 -3.92
Interpretation
The returns of HCL Technologies have been computed and are shown in Table (4.8.1)
above. When comparing the returns from 2018-19 the investment showed a positive return
of 12.89%, in the year 2019-20 The investment experienced a significant negative return
a positive return of 20.94 %,in the year 2022-23 maintained its negative performance,
yielding a return of -3.92%.
62
Table 4.8.2 computation of expected return and expected risk of HCL
Technologies.

(%) RETURN (%) RETURN(%) RETURN)2
12.89 28.12 -15.23 231.95
-19.01 28.12 -47.13 2221.24
129.71 28.12 101.59 10320.53
20.94 28.12 -7.18 51.55
-3.92 28.12 -32.04 1026.56
VARIANCE ( 13851.83 /5) 2770.37
STANDARD DEVIATION (√𝟐𝟕𝟕𝟎. 𝟑𝟕) 52.63
(Source- Table 4.8.2)
INTERPRETATION
Table 4.8.2 shows that the expected Return is less and the risk is greater.
63
VOLATILITY
2018-19 541.45 0
2019-20 436.4 -19.40
2020-21 982.65 125.17
2021-22 1163.75 18.43
2022-23 1067.5 -8.27
(Source– Table 4.8.1)
Volatility of HCL Technologies

140 125.17
120
100
80
Percentage
60
40
18.43
20
0
0
-20 2018-19 2019-20 2020-21 2021-22 2022-23
-19.41 -15.18
-40
Year
Volatility
64
9.MAHINDRA & MAHINDRA.
4.9.1 Computation of the return of the Company Mahindra &

Mahindra.
Year Opening price (₹) Closing Price(₹) Dividend(₹) Returns(%)
2018-19 748.9 655.95 7.5 -11.41
2019-20 678.15 284.95 8.5 -56.73
2020-21 281 795.25 2.35 183.84
2021-22 801.5 806.55 8.75 1.72
2022-23 811 1144.3 11.55 42.52
Interpretation
The returns of Mahindra & Mahindra have been computed and are shown in Table (4.9.1)
above. When comparing the returns from 2018-19 the investment showed a negative return
of -11.41%, in the year 2019-20 The investment experienced a significant negative return
a positive return of 1.72% in the year 2022-23 maintained its Positivity performance,
yielding a return of 42.52%.
65
4.9.2 Computation of Expected Return And Expected Risk of
Mahindra & Mahindra .

RETURNS(%)
-11.41 31.99 -43.4 1883.56
-56.73 31.99 -88.72 7871.24
183.84 31.99 151.85 23058.42
1.72 31.99 -30.27 916.27
42.52 31.99 10.53 110.88
VARIANCE (33840.37 ÷ 5) 6768.07
STANDARD DEVIATION ( √6768.07) 82.26
INTERPRETATION
Table 4.9.2 shows that The expected return is lower, but the risk is higher.
66
VOLATILITY
VOLATILITY
YEAR PRICE (₹)
(%)
2018-19 655.95 0
2019-20 284.95 -56.55
2020-21 795.25 179.08
2021-22 806.55 1.42
2022-23 1144.3 41.87
Volatility of Mahindra & Mahindra

200 179.08
150
100
Percentage
41.87
50
0 1.42
0
2018-19 2019-20 2020-21 2021-22 2022-23
-50
-56.55
-100
Year
Volatility
67
10.HINDUSTAN UNILIVER LIMITED.
Table 4.10.1 Computation of The Return of The Company
HUL Limited.
Year Opening price Closing Price(₹) Dividend(₹) Returns(%)

(₹)
2018-19 1315 1683.9 21 29.65
2019-20 1710 2298.5 24 35.82
2020-21 2293.2 2431.5 37.5 7.66
2021-22 2446.8 2048.65 32 -14.96
2022-23 2054.9 2530.85 55 25.83
Total Return =84
Interpretation
The returns of HUL have been computed and are shown in Table (4.10.1) above. When
comparing the returns from 2018-19 the investment showed a positive return of 29.65%,
in the year 2019-20 The investment experienced a significant Positive return of 35.82%,
indicating a substantial Profit in value. In the year 2020-21, The investment continued to
perform well, with a positive return of 7.66 % and in the year 2021-22 gives a Negative
return of -14.96 % in the year 2022-23 maintained its Positive performance, yielding a
return of 25.83%.
68
Table 4.10.2 Computation of Expected Return And Risk of HUL
Limited.

RETURNS(%)
RETURN(%) RETURN (%) RETURN)2
29.65 16.8 12.85 165.12
35.82 16.8 19.02 361.76

7.66 16.8 -9.14 83.54
-14.96 16.8 -31.76 1008.69
25.83 16.8 9.03 81.54
VARIANCE (1700.65 ÷ 5) 340.13

STANDARD DEVIATION (√340.13) 18.44
INTERPRETATION
Table 4.10.2 shows that The expected return is lower, but the risk is higher.
VOLATILITY
2018-19 1683.9
2019-20 2298.5 36.49
2020-21 2431.5 5.78
2021-22 2048.65 -15.74
2022-23 2530.85 23.53
69
Volatility of HUL
40 36.49
30
23.53
20
Percentage
10 5.78
0
0
2018-19 2019-20 2020-21 2021-22 2022-23
-10
-20 -15.74
Year
Volatility
70
4.2 GRAPHICAL PRESENTATION
Expected Return and Risk

Hindustan Unilever Limited 18.44
16.8
Mahindra & Mahindra 82.26
31.99
HCL Technologies 52.63
28.1
Vedanta 120.44
52.68
COMPANY NAME
Reliance Industries 38.4

26.26
Infosys Ltd. 50.46 Expected Risk
31.43
144.14 Expected Return
TATA Motors 51.54
Asian Paints 21.67
22.61
ITC India 33.9
16.87
Larsen and Toubro 38.38
18.49
0 20 40 60 80 100 120 140 160

PERCENTAGE
GRAPH 4.11
4.3 The Volatility of The Securities Market
a) We learned about the investing potential of 10 different international corporations

by doing a risk and return assessment utilizing five years of data. The daily
variations in these firms' stock values reflect the underlying market volatility, which
provides both risks and possibilities for investors.
b) We examined the amount of risk connected with each company's stock using
indicators such as standard deviation and beta. At the same time, the return analysis
enabled us to comprehend their past performance in terms of average yearly returns.
c) The risk-return trade off was plotted to identify companies with high or low risk
and potential for high or low returns. It is essential to understand that higher-risk
investments offer the potential for larger returns, while lower-risk investments may
offer more stability.
71
d) To mitigate risks, diversification across different companies and industries is
recommended. However, It is essential to remember that past results do not
guarantee future outcomes, as the stock market is influenced by various
unpredictable factors.
72
CHAPTER – 5
FINDINGS, CONCLUSION AND SUGGESTIONS
5.1 FINDINGS
1. L&T demonstrated a Over the observed years, there was mixed performance with
significant volatility, showcasing a positive return of 6.83% in 2018-19 but also
encountering a significant negative return of -41.25% in 2019-20. It managed to
recover with positive returns in subsequent years, including a noteworthy 78.42%
in 2020-21.
2. ITC exhibited volatile performance with positive momentum, recording a positive

return of 18.74% in 2018-19, followed by a significant negative return of -44.46%
in 2019-20. However, it regained ground with positive returns of 33.78%, 18.27%,
and 58.00% in the subsequent years.
3. Asian Paints displayed a generally positive performance with some fluctuations,

posting positive returns in 2018-19 (34.40%), 2019-20 (12.07%), and 2020-21
(54.04%). However, it experienced a dip with a negative return of -10.28% in 2022-
23.
4. Tata Motors' performance was highly volatile, marked by a significant negative

return of -49.09% in 2018-19 and an even larger negative return of -59.71% in
2019-20. The investment staged a remarkable recovery with a strong positive return
of 330.84% in 2020-21, followed by mixed trends in subsequent years.
5. Infosys Ltd. displayed a mixed performance pattern with a strong positive trend,
recording a positive return of 31.43% in 2018-19, a significant negative return of -
9.43% in 2019-20, and impressive positive returns of 119.76% and 40.35% in 2020-
21 and 2021-22, respectively. However, it experienced a negative return of -24.95%
in 2022-23.
73
6. Reliance Industries had a mixed performance, having positive and negative
tendencies. It recorded a positive return of 52.78% in 2018-19, a significant
negative return of -18.23% in 2019-20, and positive returns of 80.77% and 30.91%
in 2020-21 and 2021-22, respectively. However, it experienced a negative return of
-14.92% in 2022-23.
7. Vedanta's performance displayed extreme fluctuations, with a negative return of -

30.67% in 2018-19 and a substantial negative return of -63.39% in 2019-20. It saw
a significant positive return of 266.54% in 2020-21 and a positive return of
101.46% in 2021-22, followed by a negative return of -10.49% in 2022-23.
8. HCL Technologies exhibited mixed performance with periods of both positive and
negative trends. It posted a positive return of 12.89% in 2018-19, a significant
negative return of -19.01% in 2019-20, and strong positive returns of 129.71% and
20.94% in 2020-21 and 2021-22, respectively. However, it experienced a negative
return of -3.92% in 2022-23.
9. Mahindra & Mahindra displayed mixed performance with substantial recovery,

recording a negative return of -11.41% in 2018-19 and a significant negative return
of -56.73% in 2019-20. It demonstrated a strong positive return of 183.84% in
2020-21 and positive returns of 1.72% and 42.52% in 2021-22 and 2022-23,
respectively.
10. HUL's performance exhibited periods of both positive and negative trends, posting
positive returns of 29.65%, 35.82%, and 7.66% in 2018-19, 2019-20, and 2020-21,
respectively. However, it experienced a negative return of -14.96% in 2021-22 and
rebounded with a positive return of 25.83% in 2022-23.
74
5.2 SUGGESTIONS
1.Diversification: Given the varying performance of different investments, consider

diversifying your portfolio across multiple assets or industries. Diversification can help
mitigate the impact of poor-performing investments on your overall portfolio.
2.Risk Management: Evaluate the risk tolerance and adjust the investment allocation
accordingly larger volatility investments may have a chance to provide larger profits, but
they also carry a higher risk. Balance high-risk investments with more stable options to
manage overall portfolio risk.
3.Long-Term Perspective: While short-term fluctuations are common, taking a long-term
perspective can help smooth out the impact of market volatility. Consider your investing
horizon while making decisions so that they are in line with your long-term financial goals.
4.Review Asset Allocation: Periodically review and adjust your asset allocation based on
varying market circumstances and your personal financial situation. Rebalancing your
portfolio can help ensure that it remains aligned with your goals and risk tolerance.
5.Consider Professional Advice: If you're unsure about making investment decisions on
your own, consider seeking advice from a financial advisor. They can help you tailor your
investment strategy to your specific needs and provide expertise on market trends.
6.Monitor Market Trends: Keep up with industry trends, economic trends and world
affairs that may have an influence on your assets. You may use this knowledge to make
better judgments and change your portfolio as necessary.
7. Leverage Investment Tools: Utilize investment tools such as stop-loss orders or limit
orders to manage potential losses or lock in gains. These tools can aid in the automation of
your trading approach and the reduction of emotional decision-making.
8. Avoid Overreacting: Avoid making impulsive decisions based solely on short-term
performance. Investment markets can be volatile, and knee-jerk reactions may lead to
missed opportunities or unnecessary losses.
9.Review Investment Goals: Regularly assess whether your investment goals and
objectives have changed. Life events, financial needs, and personal circumstances can
influence the suitability of your investment choices.
75
11. Stay Patient: Remember that investment success often requires patience and discipline.
Markets can go through cycles, and maintaining a long-term perspective can assist you
weather temporary downturns.
12. Evaluate Tax Implications: Consider the tax implications of your investment
decisions. Different investment choices may have varying tax consequences, and
optimizing your tax strategy can enhance your overall returns.
13.Regular Portfolio Reviews : Set up a regular portfolio review routine to analyse the
effectiveness of your resources and make any required modifications depending on your
financial goals.
5.3 CONCLUSION
Analysis of the submitted investment data highlights a diverse range of performance

outcomes. Some investments, like TATA Motors and Infosys Ltd., have shown remarkable
recoveries after periods of substantial losses, underlining the potential for long-term
growth. However, volatility is evident in others, such as Vedanta and Reliance Industries.
Diversification is crucial to manage risk, as performance variations across industries are
apparent. Investors should align their choices with individual goals and risk tolerance,
while also considering professional advice for optimal portfolio management. A long-term
perspective, continuous monitoring, and disciplined decision-making remain essential in
navigating the dynamic investment landscape.
76
BIBLIOGRAPHY
1) Dr.Sonali Yadav (2019) Explores The Evolving Weak Form Efficiency Of The Indian
Stock Market.
2) S. Ponmuthumari, M. Senthil Mathi The Study On Risk Tolerance Level Of Individual
Investors And Comparing To Various Investment Avenueshttps //Www.Ijrte.Org/Wp-
Content/Uploads/Papers/V7i6s5/F10340476s519.Pdf
3) Sushma K S, Charithra Cm, Dr. Bhavya Vikas - A Study On Risk And Return Analysis
Of Selected Financial Services Companies Listed On Nse International Education &
Research Journal- July 2019, Volume 5, Issue 7.
4) Suresh A.S And Sai Prakash.L(2018): Study On Comparison Of Risk Return
Analysis Of Public Andprivate Sector Banks Listed On Bank Nifty. Journal Of
Business Management And Economic Researchvol.2, Issue.1, 2018 Pp.1-8
Doi: 10.29226/Tr1001.2018.
5) Yadav, Sameer. (2017). Stock Market Volatility - A Study Of Indian Stock Market.
Global Journal For Research Analysis. 6. 629-632.
77

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Chandru M K-4jn21ba026 - Report

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CHAPTER -1

1.1 INTRODUCTION TO THE PROJECT

A focused and time-bound endeavour aimed at exploring a specific business challenge or

An economic market serves as a platform where individuals exchange financial assets at

Post-independence reforms (1950s-1980s) enacted the Securities Contracts Regulation

e) Dividend Stocks: Regular dividends attract investors seeking steady income.

g) Small, Mid, Large-Cap Stocks: Categories based on company size.

1.2.5 RISK-RETURN RELATIONSHIPS

1.2.7 MEANING OF STOCK MARKET

Securities traded - 1.Shares 2.Derivative 3.Bonds

Key Players in the Stock Market:

• Brokers and Dealers

a) Company Performance: The financial performance and The value of a company's

1.2.9 FUNCTIONS OF STOCK EXCHANGE

a) Facilitating buying and selling

1.2.10 MAJOR STOCK EXCHANGES ARE

1. NATIONAL STOCK EXCHANGE (NSE): The National Stock Exchange of

e. Encouraging Innovation: NSE introduces new financial products and mechanisms to

2. BOMBAY STOCK EXCHANGE (BSE) : The Bombay Stock Exchange

a. SEBI protects investors' interests in the securities sector.

PURPOSE FOR STOCK MARKET :

1. Larsen & Toubro Ltd. :

Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate based in

Table 1.1 Information About Larsen And Toubro

Revenue ₹183234 Cr (2023)

Products, Services And Competitors

L&T offers engineering and construction services encompassing infrastructure

It operates in various sectors, including fast-moving consumer products, hotels,

Revenue ₹76518 Cr (2023)

PRODUCT AND SERVICES AND COMPETITORS

Table 1.3 Information About Asian Paints

Revenue ₹ 34489cr (2023)

(Source : Company website)

Products, Services And Competitors

Table 1.4 Information About Tata Motors

Revenue ₹ 345967 Cr (2023)

Infosys continued to evolve, emphasizing digital transformation, artificial intelligence,

Revenue ₹146767 Cr (2023)

PRODUCTS, SERVICES AND COMPETITORS

Infosys Limited is an Indian multinational corporation that provides a range of IT

Reliance Industries Limited (RIL) is a Mumbai-based Indian conglomerate with diverse

Table 1.6 Information About Reliance Industries

Revenue ₹ 892944 Cr (2023)

In 2003, Vedanta underwent a major restructuring, creating Vedanta Resources Limited as

Despite challenges and controversies, Vedanta remains a significant player in India's

Table 1.7 Information About Vedanta Ltd.

Revenue ₹146767 Cr (2023)

Products, Services And Competitors

Having a significant involvement in mining, Vedanta Resources Limited is a major global

HCL Technologies is a well-known international provider of IT services and consulting

Table 1.8 Information About HCL Technologies

Revenue ₹146767 Cr (2023)

Products, Services And Competitors

HCL Technologies provides a range of services including software development,

Table 1.10 Information About Mahindra And Mahindra

Revenue ₹146767 Cr (2023)

Products, Services And Competitors

10. HINDUSTAN UNILIVER LIMITED

Revenue ₹146767 Cr (2023)