Vol. 3, Issue 2, Part D (2017)

Abstract
The capital market in India is a very strong and has undergone drastic changes in the last more than two decades and now became more transparent than ever. Stock markets in general are considered volatile. Volatility plays an important role in measuring the risk–return. There are so many factors that make the stock market volatile; it is of general interest to understand if the volatility of the stock market in India in line with the volatility of the different sectors in India. Bank stocks have been major contributors to the fluctuations in the stock market index. Volatility is a measure of variability from the mean values. Given this basis, the banking sector is chosen in this study to see if the movement of the banking sector is in tandem with the national stock movements as reflected in the NSE Nifty. As per the study All the banks shows higher rate of growth when compare to public sector bank. Kotak Mahindra Bank has a growth rate of 65, followed by HDFC bank 15.38. HDFC bank also shows a growth rate of 16.6 in the stock price during the last one year. All the banks show high positive correlation with Nifty PSU Bank index. All banks show high positive correlation with Nifty Private Bank Index.