Measurement of Volatility of Selected IT Companies in Context of National Stock Exchange and Assessment of Risk Factors From an Investor's Point of View

2019 International journal of recent technology and engineering  
Volatility is an important aspect for every investor since it provides with an idea about risk and reward chances in investment portfolio. In the last decade, the benchmark indices have gained seven out of ten times, with the election result as a key driver to the market movement. The market gained by not less than 28 percent when UPA came into power after defeating NDA. They however jumped quickly by almost 16 percent when UPA came to power with the assistance of Left back in 2004.The analysts
more » ... n 2004.The analysts remained bullish on Information sector during this period. This paper investigates and compares the share price volatility of selected Information Technology companies based on their market capitalization in context of Nation Stock Exchange using daily closing price of last 25 months. The average comparison of the sector is understood by the analysis of the companies analysis of the IT sector using mean, beta value and monthly volatility. The paper concludes the inverse relationship between the volatility and returns which would definitely facilitate investors in taking better investment decision and also in earning better returns in the short run.
doi:10.35940/ijrte.c4889.098319 fatcat:tqcq4p4znngcpjg4ggmdwippyi