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Optimal Returns in Indian Stock Market during Global Pandemic: A Comparative Study

Author

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  • Pradip Debnath

    (Department of Applied Science and Humanities, Assam University Silchar, Cachar 788011, Assam, India)

  • Hari Mohan Srivastava

    (Department of Mathematics and Statistics, University of Victoria, Victoria, BC V8W 3R4, Canada
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan, China
    Department of Mathematics and Informatics, Azerbaijan University, 71 Jeyhun Hajibeyli Street, Baku AZ1007, Azerbaijan
    Section of Mathematics, International Telematic University Uninettuno, I-00186 Rome, Italy)

Abstract

This research is an extension of our previous work [Debnath and Srivastava (2021)]. In that paper, we designed a portfolio based on data taken from National Stock Exchange (NSE), India, during 1 January 2020 to 31 December 2020 and performance of that portfolio in real-life situation was examined during 1 January 2021 to 21 May 2021 assuming investments were made according to the proposed model. We observed that our proposed portfolio was efficient enough in that period to beat the performance of most of the in-demand mutual funds. It was also conjectured that this portfolio would be sustainable post the second wave of COVID-19 in India. In the present paper, our aim is to validate this conjecture. Here, we examine the performance of this portfolio during the period 1 January 2021 to 18 October 2021 using the same previous data set. We also investigate the performance of this portfolio if it was blindly adopted without applying the stock selection methodology during 1 January 2019 to 31 December 2019. Using paired t -test between the difference of means of the performances in the year 2019 and the year 2021, we show that the performance in 2021 was significantly enhanced because of selecting the stocks applying our proposed model.

Suggested Citation

  • Pradip Debnath & Hari Mohan Srivastava, 2021. "Optimal Returns in Indian Stock Market during Global Pandemic: A Comparative Study," JRFM, MDPI, vol. 14(12), pages 1-13, December.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:592-:d:697507
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    References listed on IDEAS

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