A Study on Analysing Risk and Return Profiles of Top Two Companies in Nifty 50

A Study on Analysing Risk and Return Profiles of Top Two Companies in Nifty 50

Mr. Chidanand M Mulimani

MBA Student, Dept. of MBA, Dr. Ambedkar Institute of Technology

Abstract

This study conducts a comparative analysis of the risk and return profiles of two leading software companies in the Nifty 50 index, Tata Consultancy Services (TCS) and Infosys, over the period from 2019 to 2024. The analysis aims to provide insights into the historical returns, volatility, and risk-adjusted performance of these companies using financial metrics such as standard deviation, beta, and alpha. Through hypothesis testing, the study evaluates correlations between risk and return, examining both companies’ sensitivity to market conditions. Findings indicate that while both firms offer positive alpha and substantial returns, TCS exhibits slightly higher stability, whereas Infosys shows higher volatility. The results provide valuable guidance for investors, highlighting considerations for portfolio diversification and strategic investment in the Indian IT sector.

Keywords: Nifty 50, Risk-return analysis, volatility.