Title of the study

An Analytical Study on the Volatility of Shares Traded on NSE Nifty with special reference to Aashirvaadh Finanacial Services
Statement of the problem The Indians securities market has always witnessed fluctuations, especially National Stock Exchange (NSE) Nifty have more volatility than the securities traded on the BSE. The study attempts to identify the volatility of shares listed in National Stock Exchange with special reference to 50 Nifty stocks. Moreover this study helps the potential investors make better investment decision based on calculated beta of 50 shares listed in National Stock Exchange (NSE) Nifty. Need and importance of study The stock market in India existed for a well over a century. Now its importance in the mobilization, allocation and efficient use of scare investment resources has not been recognized until the last decade. During the last decade both secondary and primary markets have witnessed phenomenal qualitative and quantitative developments. One of the important characteristics of well functioning stock market is the stability of prices of securities traded on it, which is price volatility. Volatility of securities price has important implications for firms investment and financial decisions, valuations and investors sentiments. Price volatility of securities has consequence for firms decisions on how much capital to issue, type of instrument to be used when to use. Further high price volatility provides opportunities for expropriations between various market players. There for the study of volatility of security is very important contextual as well. Here analytical study of volatility of shares traded on National Stock Exchange is the topic of this project. Objective of the study To study the volatility of securities listed in National Stock Exchange (NSE). To find out the various factors which are responsible for volatility. T o s u g g e s t b e t t e r i n v e s t m e n t d e c i s i o n b a s e d o n c a l c u l a t e d b e t a o f f i f t y companies. Methodology It covers the type of research used in the dissertation, sample size chosen, sample description, data collection. Each will be described separately under the following headings.

Population Size For the study 50 companies have been selected. All the companies are the major players in the economy and are part of Nifty. Sample technique The current study requires no sampling techniques. All the 30 companies in the National Stock Exchange Nifty which appear from December to February are selected. Sample description Code Name Sector

Actual collection of data Basically, the data used in this dissertation are secondary in nature, w h i c h appeared in Economic Times and Business line and from the web site of Bombay Stock Exchange. Past three months (from March to May) daily closing price of all the stock of companies listed in Bombay Stock Exchange Sensex has been used in this dissertationh a v e b e e n u s e d t o t e s t t h e a p p l i c a b i l i t y o f B e t a , S t a n d a r d D e v i a t i o n , a l p h a a n d Coefficient of Correlation, which are used to measure volatility of shares. Techniques used for data analysis Basically whole data analysis has been performed using spreadsheet in Excel byusing different statistical functions inbuilt in Excel. The following statistical functionshave been employed during the data analysis.Average: Calculate the average of a given data.C o r r e l a t i o n : C a l c u l a t e s t h e c o e f f i c i e n t o f c o r r e l a t i o n b e t w e e n M a r k e t R e t u r n s a n d Companies Returns.Slope: Calculates the Beta that shows the price of a security responds to market forcesA l p h a : C a l c u l a t e s t h e risk - a d j u s t e d m e a s u r e o f t h e s o c a l l e d a c t i v e r e t u r n o n a n investmentStandard Deviation: Calculates the standard deviation that measures the risk of an assetfrom the expected value of return.

Limitation of the study

T h e m o s t i m p o r t a n t l i m i t a t i o n o f t h i s s t u d y i s t h a t i t c o n s i d e r s o n l y S e n s e x Companies listed in Bombay Stock Exchange. Only three months duration has been taken for the study from March 2011to May2011.

Chapter Scheme
The first chapter deals with the introduction and back ground of t h e s t u d y responsible for price fluctuations, the types of volatility, statistical tools used for calculation of volatility. The Second chapter deals with the Research design, it includes the title of thestudy, statement of the problem, need and importance of the study, objective of t h e s t u d y , methodology of the study, population size, sample size, samplingtechnique, a c t u a l d a t a c o l l e c t i o n o f d a t a , t e c h n i q u e u s e d f o r d a t a a n a l y s i s , limitation of the study and chapter scheme. The third chapter deals with the industry as well the profile of all the t h i r t y companies are part of sensex. The fourth chapter shows the analyses and interpretation. It includes the graphicalrepresentation of monthly average return of the Company vs Sensex return