Tag Archives: Indian equities

Apr 13, 2021

S&P BSE SENSEX Indices Reach All-Time Highs in Q1 2021

The S&P BSE SENSEX Index Series comprises three indices, namely the S&P BSE SENSEX, the S&P BSE SENSEX 50, and the S&P BSE SENSEX Next 50. The S&P BSE SENSEX is the oldest and most tracked index in India and comprises the 30 largest, most liquid, and financially sound companies in the S&P BSE 100….

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Jan 14, 2021

Performance of Indian Capital Markets in 2020

Indian capital markets had an exceptional year in 2020. The COVID-19 pandemic initially had an adverse impact on Indian capital markets, as indices across size and sectors fell during the period from February 2020 to May 2020. However, from June 2020 onward, all size and sector indices had a bull run through the end of…

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Oct 22, 2020

Indian Investments in Global Equities: From Zero to Hero

India has been one among many countries that favor a strong home bias in their investment portfolios. There have been many theories put forth on what causes the bias and research has been undertaken to understand it. Whether it is the ease of local information access, regulatory concerns, investor preferences, cost concerns, transactional viability, or…

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Oct 14, 2020

Global Diversification in 2020 – Is India Seeing This Opportunity?

The year 2020 has been unique, with the COVID-19 pandemic bringing unprecedented changes to economic activity that no one was fully prepared for, as well as record levels of volatility in financial markets. But such disruption not only creates innovation, it also gives opportunities to contrarian options and allows new themes to emerge dominant. India…

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Aug 11, 2020

Why the S&P 500 Reduces Portfolio Volatility for Indian Investors

Home bias has been a prominent theme in India since the beginning of the mutual fund industry. Investors historically questioned why they should diversify their high GDP growth portfolio (India) with lower growth economies such as the US. This hypothesis has been tested over the last decade. India has delivered a high GDP growth but…

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Jul 13, 2020

Indian Capital Markets Followed Global Trends in the First Half of 2020

2020 has been overshadowed by the COVID-19 outbreak and the subsequent lockdown across the world. Capital markets have been negatively affected globally as well as locally in India. The lockdown in India began during the third week of March 2020 and has only recently been slightly relaxed. The first half of 2020 was volatile for…

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May 25, 2020

Is Alpha Generation a Zero-Sum Game in Indian Large-Cap Equities?

Globally, as markets have matured, we have seen the institutional share of public equity increasing.[1] Professional managers are continuing to enter the investment management industry, resulting in market research becoming more institutionalized. Hence, more and more industry research analysts are competing against each other and chasing the same set of stocks to generate alpha (or…

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May 21, 2020

Do Management Fees Outweigh the Alpha Generated in Indian Equity Large-Cap Funds?

Without Fees, Do Active Managers Outperform their Benchmarks? The SPIVA® India Year-End 2019 Scorecard shows that, over longer horizons, a large proportion of active funds underperform their respective category benchmarks (see Exhibit 1a). The SPIVA India Year-End 2019 Scorecard evaluates the performance based on net-of-fees returns (i.e., gross returns less the management fees). But do…

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Apr 6, 2020

COVID-19’s Role in the Changing Landscape of Indian Capital Markets

In the past five years, capital markets in India have witnessed bull and bear phases. The bulls accounted for most of the five-year period; however, Q1 2020 completely changed this landscape. Due to the COVID-19 outbreak, capital markets have taken a beating both globally and locally in India. Exhibit 1 and 2 showcase the five-year…

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Jul 18, 2019

Do Active Funds in India Benefit from Higher Active Risk Exposure?

Fund managers typically follow a factor or a style of investing and aim to construct portfolios by balancing active sector exposures and stock-selection risks within a sector. Tracking error is one way to measure a fund’s deviation from its respective benchmark to determine how “active” it is. As measured in the SPIVA® India Year-End 2018…

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