Tag Archives: Sensex

Capital Market Performance During the Four Years of Narendra Modi’s Government

On May 16, 2014, Lok Sabha election results were announced, and Narendra Modi’s Bharatiya Janata Party got a clear mandate to form the government. Narendra Modi was sworn in as the 14th Prime Minister of India on May 26, 2014, and his government recently passed the four-year mark of being in power. This government has Read more […]

The Evolution of Indian Indices

A recent stipulation by SEBI for the mutual fund industry outlines how to treat size classifications and suggests that funds need to be very explicit in their stock selection and fund categorization when it comes to stock sizes. SEBI laid down rules for categorizing funds based on component stock sizes and fund houses have to Read more […]

How Do Single Factors Perform in Different Market Regimes in India?

In continuation to our previous blog titled “Factor Investing 101,” this blog investigates the performance of single factor indices in the Indian equity market. Over the period from October 2005 to June 2017, portfolios for all risk factors we examined—low volatility, momentum, value, quality, dividend, and size (small cap)—outperformed the S&P BSE LargeMidCap (see Appendix Read more […]

S&P BSE SENSEX During Budget Sessions Under Mr. Narendra Modi’s Rule

On May 16, 2014, the Lok Sabha election results were announced and Mr. Narendra Modi’s Bharatiya Janata Party got a clear mandate to form the government. Narendra Modi was sworn in as the Prime Minister of India on May 26, 2014. Since taking charge, the Narendra Modi government has made several landmark policy decisions. Some Read more […]

Performance of Indian Capital Markets in 2017

Capital markets in India had a bull run in 2017 and gave exponential returns across size, segments, and sectors. In this blog, we will analyze how capital markets in India have performed in 2017. Exhibit 1 and 2 showcase returns for India’s four leading size indices in 2017.  Exhibit 1: One-Year Absolute Returns of Size Read more […]

Performance of Capital Markets in India Since Demonetization

On Nov. 8, 2016, Mr. Narendra Modi came on national television and announced that at the stroke of midnight, 500 and 1,000 rupee notes would no longer be legal tender.  These notes constituted 86% of the total currency in circulation.  This announcement was by far one of the boldest economic decisions taken in recent years.  Read more […]

The Growth of Small Caps in India

Over the past few decades, Indian capital markets have matured, and a large number of Indian market participants are now looking at capital markets as an investment avenue.  Investment in capital markets has grown substantially among all types of market participants—retail, institutional, and even government institutions, where recently the Employee Provident Fund Organization has started Read more […]

Sector Diversification through Index Linked Products

The proverb “do not put all your eggs in one basket” is what diversification achieves when it comes to investment.  A portfolio can be diversified by investing in multiple asset classes, such as stocks, bonds, real estate, commodities, etc.  A diversified portfolio helps improve the risk/return profile of the investments. In capital markets, diversification refers Read more […]

MidCap: A Sweet Spot in the Indian Equity Market

The mid-cap space has often been described as the “sweet spot” of equity investing—and with good reason.  Mid-cap companies tend to offer a balance between the high growth (and high risk) offered by small caps and the stability (but relatively slower growth) of large caps.  Additionally, Indian mid-caps have a more diverse sector representation than Read more […]

Managing Risk While Heading for Returns

Returns are definitely one of the key influencers of investment decisions.  However, poor governance can result in failures, as too much emphasis on returns may result in ignoring the need to understand and manage the potential risk.  It is important to understand the risks associated with an investment strategy.  Risk can have different interpretations depending Read more […]