Investigating Risk and Return of Selected Companies in Various Sectors in BSE-SENSEX

In the recent times, capital markets are characterized by fluctuations in returns of companies belonging to various sectors. Stocks of few companies tend to be more tandem with that of the market. Investors are facing difficulty in making informed decisions due to high volatility in financial markets. This paper attempts to throw light on the intricacies of risk and return while investing in companies belonging to various sectors in BSE-SENSEX. In this context, Six companies were selected from Automobile, Metal, Consumer goods, IT, Pharmaceutical and Financial sectors. The outcome of the study has provided evidence that the returns of TCS, Sun Pharma and ITC are higher during the study period and are less volatile. The stock returns of Tata Motors, HDFC and Coal India have been lower due to greater volatility and higher levels of systematic risk inherent in them compared to other sector stocks.