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Asian Journal of Management
Year : 2018, Volume : 9, Issue : 3
First page : ( 1077) Last page : ( 1084)
Print ISSN : 0976-495X. Online ISSN : 2321-5763.
Article DOI : 10.5958/2321-5763.2018.00171.3

A Study on Beta Stability in the Indian Stock Market

Mrs. Shetty Soumya1,*, Dr. Dsouza Janet Jyothi2

1Assistant Professor, Dept. of Business Administration, Shreedevi Institute of Technology, Jnana Gangothri Campus Kenjar, Mangalore

2Assistant Professor, Dept. of Business Studies, Ballari Institute of Technology and Management, Ballari, janetjyothidsouza@gmail.com

*Corresponding Author E-mail: shettysoumya8509@gmail.com

Online published on 30 January, 2019.

Abstract

Measurement of risk plays an important role for any investment decisions because risk can be eliminated to some extent but not completely. The degree of risk varies from one sector to other sector based on company's internal and external influences. The risk has been categorised as unsystematic risk (company risk) or systematic risk (market risk). Most of the investors are taking beta as the measurement to know the market risk for the any of the investment securities. The purpose of this paper is to find out the stability of beta for different sectors of Indian economy over last 10 years. The period of analysis covered for this study is September 2007 to October 2017. For CPSE indices data available only from July 2008 and Infrastructure indices from May 2014 and for India manufacturing indices from June 2015. In this study I have used regression techniques to find out risk factor as well as descriptive statistics to know data structure. The sector wise indices from Bombay stock exchange of India are used for the purpose of analysis. The sectors which have been considered for the study are Auto, Bankex, Capital goods, Consumer durables, energy, Fast moving capital goods, consumer goods, Finance, Healthcare, India infrastructure index, Information technology, Industrials, S and P BSE Technology, S and P BSE Telecommunication, S and P BSE Utilities, S and P BSE Carbonex, S and P BSE Greenex, S and P BSE Quality index, S and P BSE PSU, S and P BSE Oil and Gas, S and P BSE Realty, S and P BSE Mid cap, S and P BSE Small CAP, S and P BSE Basic materials, S and P BSE CPSE, Large cap. It is found that Capital goods, Consumer durables, Finance, India infrastructure Index, Industrials, S and P BSE Telecommunication, S and P BSE Greenex, S and P BSE PSU, S and P BSE Realty, S and P BSE Mid cap, S and P BSE Small CAP, S and P BSE Basic materials are aggressive stocks indices and rest all are the defensive sectors.

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Keywords

Beta, Risk, Investment, Indices.

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