Tag Archives: Sensex

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 […]

30 Year old S&P BSE SENSEX conquers the 30,000 mark

The much awaited 30,000 mark was conquered by the S&P BSE SENSEX on Apr. 26, 2017 where the index level closed at 30,133.35, while the total return index level closed at 42,503.33. It took 557 trading sessions to go from the 29,000 level to cross the 30,000 level.  The S&P BSE SENSEX was launched on Read more […]

Diversification and Risk Management

Recently, I attended a session by an expert on good health.  I was pleasantly surprised to learn that besides diet and exercise, emotional and spiritual health is essential to a holistic lifestyle. When there are many elements to achieving a certain goal, it is of primary importance that each of those elements is included and Read more […]