Risk and Return Analysis of Prominent Sectoral Indicies of Nse and Nifty 50

Abstract

This principle assumes paramount significance, especially in the context of sectoral indices on the esteemed National Stock Exchange (NSE) and the illustrious Nifty 50 index. These indices stand as beacons, illuminating distinct facets of the market landscape, offering investors invaluable insights into the performance trajectories of various industries. While the Nifty 50 index stands tall as a quintessential benchmark, embodying the pulse of the market with its curation of the 50 largest and most actively traded stocks on the NSE, its focus remains on the returns generated by a representative sample of companies across sectors within the Indian markets. On an aggregate basis, analysis of the key risk and return metrics that are pertinent to these indices would provide an empirical underpinning that enables investors to make informed decisions, optimize resource allocation, and formulate bespoke portfolios that buttress their respective investment profiles.