Objectives of the Study:
– The objective of the Arbitrage Trade Analysis of Stock Trading In NSE and BSE MBA Final Year Project study is to analyze the possibility of taking advantage of arbitrage mechanism of the blue chip scrip’s 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 scrip’s 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.
– The difference in the prices is analyzed for any scope of arbitration.
Conclusion:
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 Continue reading “Arbitrage Trade Analysis of Stock Trading In NSE and BSE MBA Project”







