INTRODUCTION

Definition APT. An alternative asset pricing model to the Capital Asset Pricing Model. Unlike the Capital Asset Pricing Model, which specifies returns as a linear function of only systematic risk, Arbitrage Pricing Theory may specify returns as a linear function of more than a single factor. STOCK STRATEGIES -: Learn about various strategies for investing in stocks, including the buy and hold approach, analyzing market timing, and estimating a companys potential for growth. MUTUAL FUND FEATURE -: There have been many successful arbitrage schemes launched in the Indian Mutual Fund Industry, but JM Financial Mutual Fund is the pioneer in this segment. It launched its first arbitrage scheme - JM Equity & Derivative Fund - and introduced the concept across the country in 2005. After an overwhelming response to this scheme, where the Company collected around Rs 823 crores, it has now come up with a new fund offering called Arbitrage Advantage Fund. The objective of this Scheme is to generate income through arbitrage opportunities emerging out of mis-pricing between the cash and the derivatives markets and through deployment of surplus cash in fixed-income instruments. Arbitrage Advantage Fund is an extended version of the JM Equity & Derivatives Fund, which According to the new guidelines by SEBI can hedge the entire position of its equity stock, opposed to earlier when a mutual fund scheme could buy/sell futures for only up to 50% of the corpus. Therefore in this new scheme, there is a mandate to deploy up to 80% of the corpus into equity shares and hedge equivalent futures

by allocating the balance 20% towards margins. This will enhance the returns of an arbitrage scheme phenomenally, just as the Company delivered 7% per annum returns in the past; and with the new Scheme, the returns to investors would be higher, at 8.5-9% a year. Scheme Feature Asset Allocation Instruments Risk Profile Min-Max Equity & Equity-linked instruments Medium-High 65-80% Derivatives, including stock futures and stock options# Medium-High 65-80% Debt Securities, Money Market Instruments Medium-High 20-35% JM Arbitrage Advantage Fund 14th June 2006 A market-neutral strategy ARBITRAGE STRATEGIES -: Arbitrage is a strategy involving a simultaneous purchase and sale of identical or equivalent instruments across two or more markets in order to benefit from a discrepancy in their price relationship. It is a risk-free transaction, as the long and short legs of the transaction offset each other exactly. Thus, arbitrage engages in a strategy in order to reduce risk of loss caused by price fluctuations of securities held in the portfolio. It involves buying and selling of equal quantities of a security in two different markets, with the expectations that a future change in price will offset by an opposite change in the other. Daily turnover in the derivatives segment is around 3.5 times the cash market volumes and is to the tune of Rs 30,000 crores. Arbitrage activity is largely concentrated in single stock futures, while index arbitrage is not very popular, although it contributes about 25-30% of the total stock futures volumes. In India, stock borrowing in the cash market is cumbersome, making the Sell Stock buy Futures strategy difficult; hence, almost the entire arbitrage activity is concentrated in Buy Stock-Sell Futures.

ADVANTAGES OF ARBITRAGE STRATEGY -: Capitalises opportunities of mis-pricing (cost of carry) between cash and derivatives. It is safe, as it does not carry equity market risk, as all equity positions are completely hedged. Potential returns are higher than comparable investment avenues with similar risks. Benefits of investing in an Arbitrage Fund Since the arbitrage fund is categorized as equity fund, there will be no tax on Long-Term capital gains; Dividends are also tax-free. Potential returns are higher than those in comparable investment avenues with similar risks like bank Fixed-deposits or liquid schemes. It does not carry risk equivalent to the equity market risk, as all equity positions are hedged.

HISTORY
BOMBAY STOCK EXCHANGE (BSE) -: Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and preeminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956, BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broadbased. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals.

HISTORY OF THE BOMBAY STOCK EXCHANGE -: The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

NATIONAL STOCK EXCHANGE OF INDIA LIMITED INTRODUCTION

THE ORGANIZATION -: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on

Establishment of New Stock Exchanges, which recommended promotion of a

National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. The National Stock Exchange of India Ltd. is the largest stock exchange of the country. NSE is setting the agenda for change in the securities markets in India. The last 5 years have seen us play a major role in bringing investors from 363 cities and towns online, ensuring complete transparency, introducing financial guarantee of settlements, ensuring scientifically designed and professionally managed indices and by nurturing the dematerialization effort across the country.

OUR TECHNOLOGY -: Across the globe, developments in information, communication and network technologies have created paradigm shifts in the securities market operations. Technology has enabled organizations to build new sources of competitive advantage, bring about innovations in products and services, and to provide for new business opportunities. Stock exchanges all over the world have realized the potential of IT and have moved over to electronic trading systems, which are cheaper, have wider reach and provide a better mechanism for trade and post trade execution. NSE believes that technology will continue to provide the necessary impetus for the organization to retain its competitive edge and ensure timeliness and satisfaction in customer service. In recognition of the fact that technology will continue to redefine the shape of the securities industry, NSE stresses on innovation and sustained investment in technology to remain ahead of competition. NSE's IT set-up is the largest by any company in India. It uses satellite communication technology to energies participation from around 320 cities spread all over the country. In the recent past, capacity enhancement measures were taken up in regard to the trading systems so as to effectively meet the requirements of increased users and associated trading loads. With up gradation of trading hardware, NSE can handle up to 6 million trades per day in Capital Market segment. In order to capitalize on in-house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999. This is expected to provide a platform for taking up new IT assignments both within and outside India NSE.IT is a state-of-the-art client server based application. At the server end, all trading information is stored in an in-memory database to achieve minimum response time and maximum system availability for users. The trading server

software runs on a fault tolerant STRATUS main frame computer while the client software. The telecommunications network uses X.25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading member's office, anywhere in India. The trading members on the various market segments such as CM / F&O , WDM are linked to the central computer at the NSE through dedicated 64Kbps leased lines and VSAT terminals. The Exchange uses powerful RISC -based UNIX servers, procured from Digital and HP for the back office processing. The latest software platforms like ORACLE 7 RDBMS, GUPTA - SQL/ORACLE FORMS 4.5 Front - Ends, etc. have been used for the Exchange applications. The Exchange currently manages its data centre operations, system and database administration, design and development of in-house systems and design and implementation of telecommunicatiosolutions. NSE is one of the largest interactive VSAT based stock exchanges in the world. Today it supports more than 3000 VSATs. The NSE- network is the largest private wide area network in the country and the first extended C- Band VSAT network in the world. Currently more than 9000 users are trading on the real timeonline NSE application. There are over 15 large computer systems which include non-stop fault-tolerant computers and high end UNIX servers, operational under one roof to support the NSE applications. This coupled with the nation wide VSAT network makes NSE the country's largest Information Technology user. In an ongoing effort to improve NSE's infrastructure, a corporate network has been implemented, connecting all the offices at Mumbai, Delhi, Calcutta and Chennai. This corporate network enables speedy inter-office communications

CAREERS WITH US -:
The National Stock Exchange of India Ltd. is the largest stock exchange of the country. NSE is setting the agenda for change in the securities markets in India. The last 5 years have seen us play a major role in bringing investors from 363 cities and towns online, ensuring complete transparency, introducing financial guarantee of settlements, ensuring scientifically designed and professionally managed indices and by nurturing the dematerialization effort across the country. NSE is a complete capital market prime mover. Its wholly-owned subsidiaries, National Securities Clearing Corporation Ltd. (NSCCL) provides clearing and settlement of securities, India Index Services and Products Ltd. (IISL) provides indices and index services with a consulting and licensing agreement with Standard & Poor's (S&P), and NSE.IT Ltd. forms the technology strength . Today, we are one of the largest exchanges in the world and still forging ahead. At NSE, we are constantly working towards creating a more transparent, vibrant & innovative capital market. This invariably implies that our need for competent people is continuous. As the leading stock exchange and fiscal entity in the country, we believe in recruiting the finest of talent in the industry. We are looking for talent to be developed into future leaders of our organization by cross-departmental exposure, continuous self-development opportunities and ongoing reinforcement to develop & enhance customer orientation & leadership potential. Awaiting you is an excellent compensation package including medical benefits, super-annotation benefits and a reward system designed to promote merit and professionalism.

TRADING -: NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market.

RISK MANAGEMENT -:
A sound risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets. NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. The Clearing Corporation ensures that trading member obligations are commensurate with their net worth. Risk containment measures include capital adequacy requirements of members, monitoring of member performance and track record, stringent margin requirements, position limits based on capital, online monitoring of member positions and automatic disablement from trading when limits are breached, etc. MARKET UPDATES -: IISL provides to specialized clients facts and figures, reports and equity market updates on regular intervals. This is a paid service.

LISTING -:
NSE plays an important role in helping an Indian companies access equity capital, by providing a liquid and well-regulated market. NSE has about 1016 companies listed representing the length, breadth and diversity of the Indian economy which

includes from hi-tech to heavy industry, software, refinery, public sector units, infrastructure, and financial services. Listing on NSE raises a companys profile among investors in India and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, each and every NSE listed company is required to satisfy stringent financial, public distribution and management requirements. High listing standards foster investor confidence and also bring credibility into the markets.

OBJECTIVES OF THE STUDY

The objective of the study is to analyze the possibility of taking advantage of arbitrage mechanism of the blue chip scrips of core sectors of Indian economy, traded in BSE and NSE. Ten blue chip scrip of five core sectors are studied for evaluation. The share prices of these scrips are being taken for analysis for the period of two months, October 2007 and November 2007. Closing prices of each share in the two exchanges are taken for analysis.

DATA ANALYSIS
CORRELATION -: Correlation is a statistical technique, which measures and analyses the degree or extent to which two or more variables fluctuate with reference to one another. Correlation thus denotes the inter-dependence amongst variables. The degrees are expressed by a coefficient, which ranges between 1 and +1. The direction of change is indicated by (+) or (-) signs. The former refers to a sympathetic movement in a same direction and the later in the opposite direction. Karl Pearsons method of calculating coefficient (r) is based on covariance of the concerned variables. It was devised by Karl Pearson a great British Biometrician. This measure known as Pearson an correlation coefficient between two variables (series) X and Y usually denoted by r is a numerical measure of linear relationship and is defined as the ratio of the covariance between X and Y (written as Cov(X,Y) to the product of standard deviation of X and Y Symbolically r = Cov (X, Y) SD of X, Y = xy/N N = XY

SD of X, Y

Where x =X-X, y=Y-Y xy = sum of the product of deviations in X and Y series calculated with reference to their arithmetic means. X = standard deviation of the series X. Y = standard deviation of the series Y

ARBITRAGE PRICE DIFFERENCE BITWEEN BSE AND NSE FOR THE MONTH OF NOV-07 Close Price s.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov 22-Nov 23-Nov 26-Nov 27-Nov 28-Nov 29-Nov 30-Nov BSE 927.95 930.4 915.05 927.9 925.2 911.95 913.9 871.2 905.2 926.7 945.95 936.55 947.85 907.9 870.5 822.75 868.65 891.9 897.95 879.5 881.85 943.9 Close Price NSE 934.3 931.15 914.5 927.2 927.95 910.1 913.2 871.15 905.6 927.55 949.1 937.25 948.1 908.35 869.55 820.15 868.5 892.15 900.45 882 880.65 944.4 difference -6.35 -0.75 0.55 0.7 -2.75 1.85 0.7 0.05 -0.4 -0.85 -3.15 -0.7 -0.25 -0.45 0.95 2.6 0.15 -0.25 -2.5 -2.5 1.2 -0.5

SUMMARY OF STATISTICS -: mean max min maxprice min price GRAPHICAL REPRESENTATION -:
GRPHICAL REPRESENTATION OF ARBITRAGE PRICING OF DLF
4
DIFFERENCE

-0.575 2.6 -6.35 949.1 820.15

2 0 -2 -4 -6 -8 S.NO 1 3 5 7 9 11 13 15 17 19 21 Series1

The above table and graph represents arbitrage pricing analysis of DLF stock trading in BSE and NSE.Here arbitrage price difference of DLF stock can be got by subtracting NSE from BSE.In the month of NOV-2007 DLF stock consists minimum value is -6.35 and maximum value +2.6 and Mean is -0.575. The above differences can shows that there is no scope for arbitrage as profit exists below five percent.

ARBITRAGE PRICE DIFFERENCE BITWEEN BSE AND NSE FOR THE MONTH OF OCT-07 Close s.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Date 1-Oct 3-Oct 4-Oct 5-Oct 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct 29-Oct 30-Oct 31-Oct Price BSE 441 438.6 442.3 433.2 412.3 426.7 424.8 430.8 429.9 430.3 430.25 420.15 421.85 416.55 415.6 425.6 429.1 429.75 425.15 422.95 414.85 427.05 Close Price(nse) 442.1 439.05 442.35 433.1 412.6 428.75 425.6 431.6 430.9 429.7 430.6 420.15 418.55 416.45 415.35 425.7 428.75 428.5 426.05 423.3 414.7 426.15 difference -1.1 -0.45 -0.05 0.1 -0.3 -2.05 -0.8 -0.8 -1 0.6 -0.35 0 3.3 0.1 0.25 -0.1 0.35 1.25 -0.9 -0.35 0.15 0.9

SUMMARY OF STATISTICS mean max min maxprice min price GRAPHICAL REPRESENTATION
GRPHICAL REPRESENTATION OF ARBITRAGE PRICING OF RANBAXY
4 3 2 1 0 -1 -2 -3

-0.05682 3.3 -2.05 442.35 412.3

DIFFERENCE

Series1 1 3 5 7 9 11 13 15 17 19 21

S.NO

The above table and graph represents arbitrage pricing analysis of RANBAXY stock trading in BSE and NSE.Here arbitrage price difference of RANBAXY stock can be got by subtracting NSE from BSE.In the month of OCT-2007 RANBAXY stock consists minimum value is -2.05 and maximum value +3.3 and Mean is +.0.0568. The above differences can shows that there is no scope for arbitrage as profit exists below five percent.

ARBITRAGE PRICE DIFFERENCE BITWEEN BSE AND NSE FOR THE MONTH OF NOV-07 Close Price Close Price s.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov 22-Nov 23-Nov 26-Nov 27-Nov 28-Nov 29-Nov 30-Nov BSE 435.85 438.55 436 429.45 427.2 430.9 432 426 424.85 427.9 423.65 411.7 415.8 413.85 398.6 393 392.45 398 394.6 389.35 378.95 387.15 NSE 435.5 439.05 436.25 428.4 428.1 431.3 432.75 426.15 424.9 428.1 424.2 411.75 415.25 414.2 397.75 392.5 392.35 398.95 394.1 388.65 377.6 385.75 difference 0.35 -0.5 -0.25 1.05 -0.9 -0.4 -0.75 -0.15 -0.05 -0.2 -0.55 -0.05 0.55 -0.35 0.85 0.5 0.1 -0.95 0.5 0.7 1.35 1.4

SUMMARY OF STATISTICS -: mean max min maxprice min price 0.102273 1.4 -0.95 439.05 377.6

GRAPHICAL REPRESENTATION

GRPHICAL REPRESENTATION OF ARBITRAGE PRICING OF RANBAXY

2

DIFFRERENCE

1.5 1 0.5 0 -0.5 -1 -1.5 S.NO 1 3 5 7 9 11 13 15 17 19 21 Series1

The above table and graph represents arbitrage pricing analysis of RANBAXY stock trading in BSE and NSE.Here arbitrage price difference of RANBAXY stock can be got by subtracting NSE from BSE.In the month of NOV-2007 RANBAXY stock consists minimum value is -0.95 and maximum value +1.4 and Mean is +0.102. The above differences can shows that there is no scope for arbitrage as profit exists below five percent.

ARBITRAGE PRICE DIFFERENCE BITWEEN BSE AND NSE FOR THE MONTH OF OCT-07 Close s.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Date 1-Oct 3-Oct 4-Oct 5-Oct 8-Oct 9-Oct 10-Oct 11-Oct 12-Oct 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct 29-Oct 30-Oct 31-Oct Price BSE 453.95 470.65 461.3 461.15 469.65 489.3 503.15 488.1 486.45 491.9 486.25 485.9 496.45 500.55 494.6 492.2 486.35 496.35 499.95 509.65 509.7 504.8 Close Price(nse) 454.25 470.4 462.05 460.15 469.5 489 503.3 488 486.8 492.2 485.75 488.3 493.8 499.95 495.25 492.55 486.3 496.9 499.85 509.85 510.65 507.15 difference -0.3 0.25 -0.75 1 0.15 0.3 -0.15 0.1 -0.35 -0.3 0.5 -2.4 2.65 0.6 -0.65 -0.35 0.05 -0.55 0.1 -0.2 -0.95 -2.35

SUMMARY OF STATISTICS -:

mean max min maxprice min price

-0.16364 2.65 -2.4 510.65 453.95

GRAPHICAL REPRESENTATION -:
GRPHICAL REPRESENTATION OF ARBITRAGE PRICING OF WIPRO
3

DSIFFERENCE

2 1 0 -1 -2 -3 S.NO 1 3 5 7 9 11 13 15 17 19 21 Series1

The above table and graph represents arbitrage pricing analysis of WIPRO stock trading in BSE and NSE.Here arbitrage price difference of WIPRO stock can be got by subtracting NSE from BSE.In the month of OCT-2007 WIPRO stock consists minimum value is -2.4 and maximum value +2.65 and Mean is +0.163. The above differences can shows that there is no scope for arbitrage as profit exists below five percent.

ARBITRAGE PRICE DIFFERENCE BITWEEN BSE AND NSE FOR THE MONTH OF NOV-07 Close Price s.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Date 1-Nov 2-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov 12-Nov 13-Nov 14-Nov 15-Nov 16-Nov 19-Nov 20-Nov 21-Nov 22-Nov 23-Nov 26-Nov 27-Nov 28-Nov 29-Nov 30-Nov BSE 499.4 492.05 484.95 487.35 477.35 469.7 460 457.45 441.05 471.2 456.45 458.3 457.4 448.65 436.55 437.95 442.05 452.7 457.75 449.45 450.5 460.3 Close Price NSE 499.4 491.8 484.75 486.9 477.25 471.55 459.5 456.4 442.15 472.95 457.2 460.85 458.65 448.3 436.75 437.85 441.45 453.15 457.8 449.75 448.1 460.65 difference 0 0.25 0.2 0.45 0.1 -1.85 0.5 1.05 -1.1 -1.75 -0.75 -2.55 -1.25 0.35 -0.2 0.1 0.6 -0.45 -0.05 -0.3 2.4 -0.35

SUMMARY OF STATISTICS -: mean max min maxprice min price -0.20909 2.4 -2.55 499.4 436.55

GRAPHICAL REPRESENTATION -:

GRPHICAL REPRESENTATION OF ARBITRAGE PRICING OF WIPRO

3
DIFFEERENCE

2 1 0 -1 -2 -3 S.NO 1 3 5 7 9 11 13 15 17 19 21 Series1

The above table and graph represents arbitrage pricing analysis of WIPRO stock trading in BSE and NSE.Here arbitrage price difference of WIPRO stock can be got by subtracting NSE from BSE.In the month of NOV-2007 WIPRO stock consists minimum value is -2.55 and maximum value +2.4 and Mean is +0.209. The above differences can shows that there is no scope for arbitrage as profit exists below five percent.

RESEARCH METHODOLOGY
INTRODUCTION Research methodology is a very to systematically solve the research problem in common place refers to a search of knowledge Research in an original contribution to the existing state of knowledge making for its advancement. The role of research in several field is business on economy as a whose, has greatly increased in modern times. Meaning and Scope : Research in command plaice refers to a search for knowledge in fact research in an art of scientific investigation the meaning of research can be stated as a careful investigation or inquiry though search for nun gales in branch of knowledge. According to Different Woody: Research and reeling problems formulating defining and redefining

problems, formulating hypothesis a suggested solution collection organizing and evaluating data marketing deductions research conclusion at lost carefully testing the conclusion to determines whether they fit the formulating hypothesis. Research is an original contribution to the existing stock of knowledge marketing for its advancement in hurt the research for knowledge through objective and systematic method of grinding solution to a problem in research. Research Design: A research design in purely and simply the framework or a plum

for a study that guides the collations and analysis of the data. A good research design has the characteristic viz problem definition,

specific method of data collection and analysis time required for research project and estimator of expenses to incurred it may be worthwhile to mention here that a

research design is nothing more than frameworks for study so that Secondary data is second hand in formation on the other hand on includes those data which are collected for same earlier research work and are applicable or usable in the study research has presently undertaken to collect additional information I made use of secondary data like magazines websites, newspapers etc. Sampling procedure : In this research work the sampling designing adapted was definite sampling in such sampling design a sample is chosen at out discretion and every sample has an equal chance of being selected. 1. Sampling Unit Service Provider

Sampling Plan: The foremost and most important step in a successful research is to define and divide the universe on population as it is not feasible to study the whole universe in single period for present research universe chose comprises of grinds neighbors consumers customer in Sagar for the purpose I divided Sagar into many regions Field work. The field work was carried out during afternoon , evening and even holidays on summers Customer wholesalers were contacted for the survey in the evening time so that reduced the chance of non- response and students were contacted in the afternoon time in their compus centre. Statistical Steps : With the helps of schedule developed and with the selection of interviews or stratified sampling method variety of data was obtained. The need now to convert these meaning full tallies full tallies for analysis and interpretation. This required following statistical :-

1. ii. iii. iv.

Data Cleaning Data Classification. Tabulation of Data Analysis of data.

Data cleaning involves identification of relevant information and leaving a side the rest. Further the data was classified and allowing them for discussion Like consumer retailer and wholesales at the almost priority etc and this followed by tabulating of data is a part technical procedure of practical the data in on order gar combustion them with existing information and extracting meaning from them simple of data analysis were adopted as the problem in hand is more informatory in nature then analytical. ADVERTISEMENT CONCEPT Advertising is multi dimensional. It is a form of mass communication, a powerful marketing tool, a component of economic system, a means of financing the mass media, a social institution, an art form, an instrument of business management , a field of employment and a profession. Advertisement has both a forward & backward linkages in the process of satisfaction across the entire spectrum of needs. The explicit function of advertisement is to make the potential audience aware of the existence of the product, service or idea which would help them fulfill their felt needs and spell out the differential benefits in a competitive situation. Advertising is not a panacea that can restore a poor product or rejuvenated a declining market. It only help in selling through the art and business of persuasive communication. WHY ADVEERTISEMENT IS NEEDED ? Advertising is a communication channel , which enables consumers in making choice from the best available alternative in the market,

 Advertisement makes product adoption process smooth. Advertisement expands markets, builds up volume, gives a market share and profitability and produces prices. IMPORTANCE OF ADVERTISEMENT PLANNING : Some basic elements of advertisement planning are : Advertisement Budget Media Planning Creative Strategy Advertisement Effective.

ADVERTISEMENT EVALUATION Pre- testing & Post - testing method : The testing can be related to the ad. copy in terms of its message, idea, theme, slogan & contents or slat can be related to products in which impact of message on product awareness or buying intention is measures. Measures can be broadly classified into two categories : Laboratory Measures Real- world measures. The following are the laboratory erasure of pre-testing which are ads related 1. Consumer jury 2. Portfolio test 3. Readability tests 4. Physiological measures 5. Eye- camera 6. Tachistocope

SCOPE OF ADVERTISING

Consumer is THE central point in every business now-a-days attracting and satisfying customers is more difficult than producing the goods , for any product many brands are available in the market. Every company wants to increase its market share. Now buyers dominate the market. So sellers has to make lot of efforts to attract and to persuade the persons to purchase his products and services. Advertising is an important means to influence the potential customers. It is an important tool of communication and promotion. Companies ranging from multinational corporations to shall retailers increasingly rely on also started giving due importance to advertising while making purchase divisions.

Evidence of increasing importance of advertising is clearly reflected from the increase in advertisement expenditure of almost all business units advertisings influences consumer attitudes and purchase behaiour. Advertisements increase brand familiarity develop brand image and help the organization in increasing its market share Advertising is to invest resources in purchasing time or space in mass media such as TV radio newspapers magazines that helps to promote the companies products r services.

ADVERTISEMENT STRATEGY

Advertisement Strategy is a link between advertisement analysis objectives plan strategy also make to implementation place goals there are size possible strategy from which have been taken the are panting a product emphasis benefits put areas as a rand build image of her arrange of products users of the product objectives new use for existing product. In my advertisement I have think to use the strategy of emphasis benefit that is given the product lower price them other advertisement. posting of the product : The advantage Fan is middle union group of customer even than lower customer. Promotion Mix : As the marketers use are united in the mix of united promotion mix. ambition of advertising, Publishing personal selling, Sales Promotion. Advertisement Budget : The total amount be spend are the advertisement of fan be divided the basic of advertisement.

LIMITATION
Limited Time : As there was only one month to prepare and in that also there were many festivals due to which time was limited as required y project. Family life : This is somewhat associated with odd working hours. Evenings are the best time to spend quality time with your spouse and children and those are actually your working hours. Health issues : Sleep disorders, heart disease, eyesight problems and depression are just a few issues surrounding the share market jobs. Abusive Clients : Many of the customers you speak with can actually get very abusive or angry. They are often able to guess from you accent that you are located in India and many customers are anyway unhappy about their work being outsourced to India.

CONCLUSIONS
The study shows that none of the studied ten scripts give any scope for arbitration. The reason is explained below. The scripts are studied for arbitration for a period of two months OCT-07 and NOV-07 ICICI stock prices in Oct-07 are in the range of rs 1016 and rs 1257, the difference in prices are rs 6.65 and rs 8.75.The maximum difference is less than 1 percent, so not beneficial for arbitration purposes. ICICI prices in Nov-07 are in the range of rs 1103 and rs 1333, the difference in prices are 18.45 and 6.95.The difference is more than 5 percent, so beneficial for arbitration purposes. HDFC stock prices in Oct-07 are in the range of rs 1357 and rs 1653, the difference in prices are rs 13.90 and rs 3.15.and in Nov-07 are in the range of rs 1475 and rs 1770, the difference in prices are 14.65 and 4.30.The difference is more than 5 percent, so beneficial for arbitration purposes. TCS stock prices in Oct-07 are in the range of rs 757 and rs 830, the difference in prices are rs 7.65 and rs 5.60.and in Nov-07 are in the range of rs 686 and rs 755, the difference in prices are 4.80 and 4.10.The difference is less than 1 percent, so not beneficial for arbitration purposes.

AIRTEL prices in Oct-07 are in the range of rs 928 and rs 1127, the difference in prices are 10.15 and 5.15.The difference is more than 5 percent, so beneficial for arbitration purposes AIRTEL prices in Nov-07 are in the range of rs 833 and rs 948, the difference in prices are 4.1 and 3.9.The difference is less than 1 percent, so not beneficial for arbitration purposes ESSAR prices in Oct-07 are in the range of rs 51 and rs 61, the difference in prices are 0.2 and 0.2. and in Nov-07 are in the range of rs 54 and rs 242, the difference in prices are 1.9 and 0.35.The difference is less than 1 percent, so not beneficial for arbitration purposes ONGC stock prices in Oct-07 are in the range of rs 939 and rs 1247, the difference in prices are rs 6.80 and rs 2.65 .The maximum difference is less than 4 percent, so not beneficial for arbitration purposes. ONGC prices in Nov-07 are in the range of rs 1141 and rs 1366, the difference in prices are 6.00 and 3.90.The difference is less than 2 percent, so not beneficial for arbitration purposes. NTPC prices in Oct-07 are in the range of rs 200 and rs 240, the difference in prices are 1.45 and 0.6.and in Nov-07 are in the range of rs 227 and rs 278, the difference in prices are 0.7 and 1.9.The difference is less than 1 percent, so not beneficial for arbitration purposes DLF prices in Oct-07 are in the range of rs 767 and rs 963, the difference in prices are 2.05 and 4.0.and in Nov-07 are in the range of rs 820 and rs 949, the difference in prices are 6.35 and 2.6.The difference is less than 1 percent, so not beneficial for arbitration purposes RANBAXY stock prices in Oct-07 are in the range of rs 379 and rs 439, the difference in prices are rs 0.95 and rs 1.40.The maximum difference is less than 3 percent, so not beneficial for arbitration purposes.

RANBAXY prices in Nov-07 are in the range of rs 415 and rs 442, the difference in prices are 2.05 and 3.30.The difference is less than 1 percent, so not beneficial for arbitration purposes. WIPRO stock prices in Oct-07 are in the range of rs 454 and rs 511, the difference in prices are rs 2.65 and rs 2.40.The maximum difference is less than 1 percent, so not beneficial for arbitration purposes. WIPRO prices in Nov-07 are in the range of rs 436 and rs 499, the difference in prices are 2.55 and 2.40.The difference is less than 1 percent, so not beneficial for arbitration purposes.

BIBLIOGRAPHY
Books Security Analysis & Portfolio Management - Fishers & Jordon Financial Management M.Y. Khan Financial Management Prasanna Chandra News Papers Business Line Times of India Magazines Week Business Daily Websites www.amfiindia.com www.sebi.com www.google.com

ENCLOSURE

Page 1

SUGGESTIONS
1. Firstly we have to open a demate account for doing investments in stock market. So, the share market companies have to help the customers by giving information to them about shares . 2. Our government have to permit more channels for telecasting more effective and efficient business and share market news and information on their channels . 3. Share market brokers have to give the over all information regarding the share market and investments to their clients . 4. Share market have to increase their website and online trading . 5. Share market employees have to increase their national customers rather than foreigners .