An empirical study on construction portfolio with reference to BSE

The main thrust of this study is to construct optimal portfolio using Sharpe single index model with reference BSE Sensex. Portfolio construction an important process for the investors/ managers in capital markets. In paper we made attempt apply Sensex 30 stocks. order stocks 5 years data i.e from June 2016 July 2021 have be considered. proposed method formulates a unique cut-off rate and selects those securities whose excess return beta ratio higher than rate. Study found that nine included highest weightage funds allocated Drreddys Labs. It concluded pre post Covid-19 period Pharmaceutical Financial services companies posted reasonable returns risk period.