Main Article Content
Abstract
In India securities trading mainly takes place in two important stock exchanges: the Bombay stock exchange (BSE) and the National stock exchange (NSE). Almost all the important company’sstock in India are listed on both the exchanges. Different types of securities of companies like equity shares, preference shares, debentures, warrants, bonds, mutual funds etc are being traded in the stock exchanges. Investors use this platform for purchasing and selling of shares with the expectation of earning additional income out of it. Every investment involves two important factors: return and risk. There is no complete safe investment, therefore a certain amount of risk is inevitable in any kind of investment. A rational investor always looks for highest return at a minimum amount of risk. This paper is an analysis of risk and return of selected stocks in Indian IT sector based on the CAPM (Capital Asset Pricing Model) .CAPM model have been used to predict the stock price movement in the near future in order to give some valuable suggestions for the investors in IT sector to whether buy or sell the securities at this particular point of time based on the analysis.