Analysis of Indian Banking Sector-A Study

Banking sector is the backbone of the county’s economy and this sector has contributed good returns for the investor in the past. Risk and return are important variables while making an investment and one cannot ignore either of the two. This study is an attempt to uncover the practical aspect of ‘risk-return theory’. Risk and Return analysis plays a very important role in individual decision making process. If the investor wishes to earn more return investor should be in the position to accept higher risk. This paper analyses the performance of banking sector taking Bank Nifty Index as benchmark. The study is based on secondary data collected from NSE. This study shows the returns and risks of banking stocks listed on Bank Nifty and to identify the best stocks to invest and the worst stocks to be ignored.