ISSN No - RBS

Deutsche Bank to pick up stake inBPL Ltd. which built up the investor’sconfidence in this stock to asignificant extent. The standarddeviation among all the companieswas highest for AVAYA GlobalConnect Ltd. in pre announcementperiod. This could be due to the reasonthat the profit before interest anddepreciation for this company hadfallen more than to a double rate i.e.from 84.05 crore to 34.4 crore, thusdecreasing the confidence in thisstock. In the post announcementperiod, the maximum standarddeviation was observed for IDEACellular Ltd. This could be due to thereason that in this period it hadlaunched new tariff plans for itscustomers like “per second calling”but these were not very beneficialbecause the company offered theseplans after Airtel and Vodafone. AsAirtel and Vodafone had alreadylaunched these types of plans, in theabsence of competitive strategies andthe investors may not be very keen toinvest in IDEA Cellular Ltd. The t-value results were found significant at1% level of significance for RelianceCommunications Ltd., MTNL, IDEACellular Ltd. and BPL Ltd. in the preannouncementperiod. The MTNL haddepicted the maximum value, it maybe because it is the only company inTelecom sector which is functioning inIndia right from the beginning andthe people have faith in thisorganization. Moreover, the meanCAR in case of MTNL was positivewith very less standard deviationbefore the announcement of dividendshowing consistency in its stockreturns. The results also depicted thatTable 3: Telecom SectorName of theCo.Mean CARBeforeRelianceComm.BhartiAirtelLtd.MTNLIDEACellularLtd.TataTele.AVAYABPLLtd.5.19 -6.08 5.14 7.63 -12.30 4.05 24.55^S.D. Before 3.96 5.37 1.98 5.05 7.97 12.35^ 10.39Mean CARAfter-2.20 0.23 -6.25 5.71 -1.38 -0.47 27.33^S.D. After 11.01 2.39 9.22 18.01^ 4.45 7.23 12.07t-value Before 7.17* -6.20 14.18* 8.28* -8.46 1.80 12.94*t-value After -1.09 0.52 -3.71 1.73 -1.70 -0.35 12.40*z-value 1.44 -4.38 -0.42 4.03* -6.37 1.54 17.98*Note: 1. *, **, *** significant at 1%, 2% and 5% level of significance.2. ^ indicates maximum value.[ 110 ] Rai Management Journal