How profitable is the Indian stock market?

Paresh Narayan (), Huson Ali Ahmed, Susan Sharma and Prabheesh K.P.

Pacific-Basin Finance Journal, 2014, vol. 30, issue C, 44-61

Abstract: In this paper, using a range of technical trading and momentum trading strategies, we show that the Indian stock market is profitable. We find robust evidence that investing in some sectors is relatively more profitable than investing in others. We show that sectoral heterogeneity with respect to profitability is a result of the gradual diffusion of information from the market to the sectors. Specifically, we show that while the market predicts returns of sectors, the magnitude of predictability varies with sectors. Our results are robust to a range of trading strategies.

Keywords: Momentum; Technical trading; Profits; Sectors; Stock market; India; Predictability (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 G17 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:30:y:2014:i:c:p:44-61

DOI: 10.1016/j.pacfin.2014.07.001

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