A STUDY ON PORTFOLIO MANAGEMENT IN INDIAN EQUITY MARKET WITH HDFC BANK AT JN FINANCIAL

Abstract

Portfolio management has emerged as a critical discipline for wealth creation in India’s growing equity markets. This study examines portfolio management practices at JN Financial, Hyderabad, a SEBI-registered investment advisory firm managing client portfolios primarily in HDFC Bank and Nifty 50 constituent equities. The research investigates modern portfolio construction techniques including Markowitz mean-variance optimization, Capital Asset Pricing Model (CAPM), Sharpe ratio analysis, and sector-wise diversification strategies applied to HDFC Bank’s stock as a core portfolio holding. Primary data was gathered through structured interviews with portfolio managers and client questionnaires. Secondary data was sourced from NSE/BSE databases, HDFC Bank annual reports (2020–24), SEBI publications, and academic literature. Findings reveal that HDFC Bank constitutes 8–12% of optimally diversified Indian large-cap equity portfolios, consistent with its 7.4% weightage in Nifty 50. Risk-adjusted returns analysis confirms HDFC Bank delivers superior Sharpe ratios of 1.42 compared to the sectoral banking index average of 0.98. The study identifies return–risk trade-offs across portfolio strategies and recommends a core-satellite approach blending HDFC Bank’s stability with mid-cap growth opportunities for Indian retail investors.