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Financial expert around the world have developed numerous approaches to estimate the expected return of stock. The objective of this paper is to estimate the expected return and compare 5 different sectors listed in National Stock Exchange (NSE).namely sectors like Nifty Auto, Nifty Energy, Nifty Bank, Nifty FMCG and Nifty IT, 5 securities from each sector is selected for calculating the expected return. Speculation made on securities is dominatingly expanding with developing enthusiasm on Savings and their requirement for an extra income. Financial specialists are prepared to invest on securities to create exceptional yield, yet the vulnerability in the financial exchange is being an obstacle for them to do as such. The serious issue looked by speculator is the absence of information on constructing a Portfolio for their venture. CAPM illustrates that the return on stock is the sum of the risk free rate plus beta times the excess return. However the beta value for the stock estimates the instability of the stock and decides the degree of risk associated with the stock. The beta times the overabundance return in the CAPM formula expresses the significance of the stock beta in their expected return. Here the beta value is measured to determine the movement of stock in their respective market. The data is collected for the securities listed in NSE for the time frame of 10 years from 2010 to 2020 to estimate the expected return on the stock. The ranking of securities are done based on the CAPM expected return for the above specified period. The study further focuses on the determining the coefficient of determination (R2) to find the variance in proportion of dependent variable to that of independent variable.
Keywords:
PM, Beta, NSE, R square, Sectoral indices
Cite Article:
"A STUDY ON PERFORMANCE EVALUATION OF DIFFERENT SECTORAL INDICES IN NATIONAL STOCK EXCHANGE", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.5, Issue 5, page no.6 - 14, May-2020, Available :http://www.ijrti.org/papers/IJRTI2005002.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator