JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
Risk and Return Analysis of Selected Top Three Companies Stocks in Nifty Index - A Study
Dr. Vinith H P , Dr. Prakash Rao K S
The research paper, titled "A Study on Risk and Return Analysis on Selected 03 Stocks in Nifty Index" aims to evaluate the risk and return profiles of three leading stocks within the Nifty 50 Index. The primary goal is to provide investors with detailed insights into the performance and volatility of these stocks, enabling them to make informed investment decisions. The scope of the study includes selecting the top 3 stocks based on criteria such as weightage and the key drives to Nifty50 Index. The analysis involves examining the historical performance of these stocks over a two financial year i.e. 2022-23 and 2023-2024, calculating the risks using financial metrics like standard deviation and beta, determining returns through measures opening price and closing price, and determining the correlation. Additionally, the study explores the risk-return trade-off, offering a strategic perspective on portfolio optimization. The methodology employed in this research is a blend of quantitative and qualitative research. Data on stock prices and financial performance are sourced from NSE website and databases analysed using statistical tools. The risk analysis assesses stock volatility and market sensitivity, while the return analysis focuses on growth trends and profitability. This study yields a comprehensive report that details the risk and return characteristics of the three selected stocks. The findings will offer practical recommendations for investors. The research insights will also contribute to the academic understanding of risk and return in the Indian stock market, making it a valuable resource for both investors and scholars. Major outcomes are as follows the return for HDFCBANK was positive at 10.88% in 2022-23, but it saw a sharp decline to -7.98%, RELIANCE had a negative return of -12.15% in 2022-23, which dramatically improved to 23.38% in 2023-24, in 2023-24. ICICIBANK showed consistent positive returns across both years, with 22.57% in 2022- 23 and 21.41% in 2023-24, indicating strong and stable performance. Untimely the study is concluded stating that the selected stocks exhibited a wide range of performances, both in terms of returns and risk (volatility). This diversity shows that different factors, some of industry trends, company performance, and broader economic conditions, had varying impacts on these stocks. The shift in returns and volatility between 2022-23 and 2023-24 suggests that market conditions, possibly including economic recovery, policy changes, or sectoral shifts, played a significant role in the performance of these stocks.
Nifty Index, NSE, Portfolio Optimization, Stock Volatility, Risk and Return Analysis