The study evaluates a risk-return analysis of the NIFTY FIFTY firms with the goal of determining the relationship between risk and return and providing facts about their performance and investment opportunities. Investors acquire helpful knowledge about their investment strategy by studying return variability and risk levels. In order to study the risk and return behaviour of the NIFTY FIFTY companies few theories like Markowitz’s Modern Portfolio construction measures efficient portfolio for investment. It aims to maximize returns for a given level of risk by analysing historical data from the NIFTY FIFTY Companies. The data comprises of daily stock prices, returns and other relevant financial metrics over a specified period. Using this data, the study calculates the mean returns, standard deviations and correlations between pairs of securities to construct a covariance matrix. It also talks about the benefits of diversification in reducing portfolio risk while maintaining a competitive level of return. The study analyses how different levels of diversification impact the risk and return. It also indicates the impact of external factors such as market conditions, industry trends and economic indicators on the risk-return profile. The findings show the importance of diversity and asset allocation in generating ideal risk-adjusted returns in the Indian stock market.

Kalyani Omprakash Raut, Dr. Ujwala Narkhede, "A Study on Risk and Return Analysis of Nifty Fifty Companies" International Journal of Scientific Research and Engineering Development, V9(5): Page(1922-1937) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.