Tag Archives: S&P BSE SENSEX .

Capital Market Performance during Three Years of Narendra Modi Government

On May 16, 2014, Lok Sabha election results were announced and India gave a clear mandate to Narendra Modi’s Bharatiya Janata Party to form the government.  Narendra Modi was sworn in as the 14th Prime Minister of India on May 26, 2014, and his government recently completed three years of being in power.  In these Read more […]

Know your Price Return versus Total Return Indices

Recently, the S&P BSE SENSEX closed above 30,000 (and 31,000 as of 26th May 2017) for the first time, recording a lifetime high in its 31 years of live history.  Immediately, print and online media were flooded with news articles discussing various milestones of the S&P BSE SENSEX. There were columns explaining how market participant Read more […]

In Which Market Cycles Do Active Funds Add the Most Alpha?

Those who invest in active funds may expect portfolio managers to deliver excess returns over their benchmark indices for the fee they paid.  However, results from the SPIVA® (S&P Indices Versus Active) India Scorecard suggest this may not always be the case.  The scorecard, which is a biannual report, attempts to capture the performance of Read more […]

Tracking the Effect of Demonetization on Capital Markets in India

November 9, 2016, was the day when the world witnessed two big unexpected events—one was Mr. Donald Trump winning the U.S. presidential election, and the second was the Indian Prime Minister Mr. Narendra Modi announcing that 500 and 1,000 rupee notes would no longer be considered legal tenders.  Both of these events were expected to Read more […]

S&P BSE SENSEX Performance during Budget Sessions over the Past Decade

The S&P BSE SENSEX acts as an indicator of the economic growth of the Indian economy.  Any national or international change in economic activity has an impact on the S&P BSE SENSEX.  In India, market participants are interested in knowing how movements in the S&P BSE SENSEX are related to various changes in economic activities. Read more […]

How Did Indian Equities and Fixed Income Fare in 2016?

What a year 2016 was—from concerns about slowing down of the Chinese economy and a surprise vote by the UK to exit the EU to a continued trend of low-to-negative interest rates among major economies globally, demonetization in India, the shocking victory of Donald Trump in the U.S. presidential election, and finally, the U.S. Federal Read more […]

Passive Investing – Myth or Reality? Part 2

Active management, success always? As we discussed before, the success of active management is directly related to its outperformance of the benchmark it is comparing itself with.  In order to ensure consistency, active managers are reluctant to deviate from standards that include this comparison.  This leads them into situations where they may have to hold Read more […]

Passive Investing – Myth or Reality? Part 1

Indexing is certainly not a myth, and while active investing is a popular reality in Indian markets, we are seeing the slow and steady rise of indexed products.  In a recent article, John C. Bogle, the founder of Vanguard Group, said, “We are in the middle of a revolution led by indexing.”[1]  John C. Bogle’s Read more […]

India: Market Update for Q3 2016

Buoyed by a good monsoon season, an increased inflow of funds by foreign portfolio investors (FPIs), the passage of a goods and services tax (GST) bill in the upper as well as lower house, and the possibility of an interest rate cut due to low to moderate inflation, the Indian capital market posted its second-best Read more […]

A Closer Look at the SPIVA India Year-End 2015 Scorecard

In 2015, the S&P BSE SENSEX remained volatile and ended in the red, at -3.68%.  In contrast, the S&P BSE India Government Bond Index ended the year in the black, at 8.33%.  The net investment by domestic mutual funds in the Indian equity and debt markets was significantly higher than the net investment by foreign Read more […]