Tag Archives: Sensex

Capital Market Performance during the Five Years of Narendra Modi’s Government

The Narendra Modi government will soon complete its five years in power. With polling underway to elect the next government, India is in election mode. Everyone is discussing politics and predicting the election results. The backers of the current government claim that the return of Modi will provide stability and ensure development. On the other Read more […]

Start Out with Passive Investing

Professionals in varied fields are often too busy to research, plan, and understand the best investment style.  A common worry is the risk associated with equity markets.  Yet this anxiety is primarily due to myth and inadequate knowledge. To protect, add value, and grow their assets, both institutional and retail investors face a myriad of Read more […]

Changes to the S&P BSE SENSEX

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 Read more […]

Do Indian Equity Mutual Funds Generate Alpha When Adjusted for Risk?

Risk-adjusted returns showcase the return accrued for every unit of risk held in a portfolio. If two portfolios have the same returns over a given time period, the one that has the lowest risk will have the better risk-adjusted return. Modern portfolio theory (MPT) assumes that an investment with higher risk should compensate the investor, Read more […]

The Blooming of Passive Investing in India

A few years back on highlighting the benefits of passive investing or index investing; there was skepticism on its ability to get a foothold in Indian financial markets. How the tides have turned! Now, not only do we have the skeptics accepting its value, but also propagating the concept. Undoubtedly, India is still largely an Read more […]

S&P BSE SENSEX During the Modi Administration’s Budget Sessions

Every year in India, the Finance Minister presents the Union Budget, which is perhaps the most important economic activity in the country. “Budget Day” comes with a lot of expectations, and it therefore has a bearing on the capital markets in both the pre- and post-budget sessions. The days before and after the budget session Read more […]

Changes in India’s Investment Sphere – An Overview of 2018

“Change is the only constant,” as quoted by Heraclitus, a Greek philosopher. The recent assembly election results have reiterated this. We saw a leadership change at the Reserve Bank of India (RBI), with Mr. Shaktikanta Das’s appointment as the new RBI Governor, following Mr. Urjit Patel’s resignation. The financial markets have also had their fair Read more […]

Signing Off 2018: India Equity Market Performance

The 2017 calendar year noted significant returns after a couple years with nearly flat returns. Continuing with the excitement from 2017, the 2018 calendar year started with exuberance, as the S&P BSE SENSEX reached more frequent lifetime highs through the end of January 2018. However, it failed to sustain these highs, as immediately after the Read more […]

Getting to Know the S&P BSE 500

Over the past three to four decades, the Indian equity market has witnessed significant growth, on account of increasing foreign capital flows and participation by domestic institutional investors. The expanding depth and breadth has brought a stronger demand from market participants for suitable benchmarks. The S&P BSE SENSEX launched in 1986 and was the first Read more […]

Indexing With Large Caps at the Core

The end of May 2018 marked another milestone in the history of ETF growth in global markets, with the total assets in ETFs crossing USD 5 trillion. Indian ETF markets are also growing significantly. The support from the Indian government via the Employees’ Provident Fund Organisation and Department of Investment and Public Asset Management, which Read more […]