Volume : I, Issue : XII, September - 2012

Analysis Of Systematic Risk In Select Housing Finance Companies In India

R. Madhavi

Abstract :

The present paper is an attempt to study the impact of volatility and systematic risk in select Housing Finance Companies in India. During the period of rapid melt down of stock markets most of the share prices fell to their lowest levels. The movement of BSE sensex as well as five other top housing companies namely HDFC, LIC Housing Finance, GIC Housing Finance, Dewan Housing Finance Ltd and Canfinhomes were studies for a period of 5 years ie from March 2004 to March 2009 and the fluctuations of share prices during bullish and bearish trends were recorded. The study reveals that the proportion of systematic risk is more in HDFC Limited followed by LIC Housing Finance Limited, Can Fin Homes Limited and GIC Housing Finance Limited. Dewan Housing Finance Corporation Limited has very small proportion of systematic risk associated with it. It indicates that the housing finance companies cannot give greater returns than market returns in a bull market and did not loose more than the market lost in a bear market. The investment in housing finance stocks is stable in nature. It can be concluded that investment in housing finance stocks is more safe in volatile market conditions.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

R.Madhavi Analysis Of Systematic Risk In Select Housing Finance Companies In India Indian Journal of Applied Research, Vol.I, Issue.XII September 2012

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