The methodology of the S&P BSE SENSEX has seen many changes over the last 30 years. In October 2018, it was again modified after an extensive market consultation. The recent changes brought new clarity to the boundaries for entry and exit of stocks in the index. Constituents are selected by size and liquidity. Now, any…
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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…
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…
Since the introduction of ETFs, the dynamics of investing has changed dramatically. Apart from being more transparent, with lower costs and improved tax efficiency, ETFs have helped create the opportunity for smaller investors to access asset classes previously available only to institutional investors. Emerging markets tend to be riskier than developed markets, but can also…
The ability to measure, and to quantify what has been measured, is important for advancement. It gives us a sense of the current state of things and helps us to gauge the amount of improvement that can be attained. For example, it does not help if a runner only knows that she runs fast, but…
High Yield Bond Market – Outlook has changed to the positive, away from the recent stories of overvaluation and fund withdrawals. The S&P U.S. Issued High Yield Corporate Bond Index returned 1% last week and a 0.43% the week before to recover the loss incurred the last week of July (-1.38%). Year-to-date the index is…
Indexing is an investment approach which simply tracks an index to provide exposure to a market or segment of a market. For the three reasons listed below, it may be a viable complement or substitute to actively managed investments. Firstly, indices outperform the majority of actively managed funds. The SPIVA Australia Scorecard, which is published…
As markets are becoming more advanced and mature, investment strategies are incorporating different styles and methods to achieve desired returns. There are growth and value styles, fundamentally driven strategies, tactical allocation strategies, sector-based strategies and the list goes on. We never know when a trend toward a certain style or strategy may take off and…
A consideration to take into account when reviewing preferreds is the fact that they are sensitive to changes in interest rates. The reasoning behind this is due to the structure of preferreds, as many issuances pay a relatively high dividend based on a percentage of par in perpetuity. Like bonds, preferreds generally exhibit a negative…
The recent launch of our S&P Dow Jones Indices India Index Dashboard brought to my notice the S&P BSE Small Cap Index. While the month’s report card was mostly green for the Indian indices due to the optimism in the Indian stock markets, the S&P BSE Small Cap Index did shine through. The S&P BSE Small…
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