Comparative Analysis of Banking StocksBSE BANKEX vs. NEPSE

Title

Comparative Analysis of Banking StocksBSE BANKEX vs. NEPSE

Creator

Ravichandran, K.; Ajitha, S.; Punniyamoorthy

Description

Equities may also be termed as shareholder's equity that make the holder an owner of corporate equity and empower him to vote in the annual general meeting of the company. Equity, both in its common and preferred form, is used by investors to understand risk and reward patterns in order to identify and minimize losses, and equally, to maximize gains. Relative to the risk-return trade off, this paper seeks to examine the Indian and Nepali banking equities performance. Currently the banking industry holds a large part of the GDP of the two trading partners; in Nepal it accounts for 18% and in India it accounts for 7.7%. Nepal is a very import oriented economy and the most part of this import money is made through remittances while India has diverse industries that constitute its economy. The empirical analysis is based on the five selected commercial banks; three banks from BSE Bankex of India and two banks from NEPSE Banking Sub-Index of Nepal based on market capitalization. Employing the historical data of five years (from April 2017 to March 2022), it can use Mean, Standard Deviation, Correlation, Regression, and ANOVA to make analysis. Analysis reveals that Indian banking equities exhibit better returns than the Nepali equities over the comparable period. Annualized returns help identify benchmark banks including ICICI Bank and NIC Asia Bank. However, there is more risk in Indian equities because they offer the capacity of higher returns. Thus, the Nepali banking equities have lower risk but produce only mediocre returns with several banks even negative returns. Indian banks provide much better investment opportunities and higher returns even though they are more risky. It helps investors determine profitable equities based on thorough risk-return assessments for equities. 2026 selection and editorial matter, Dr. Harold Andrew Patrick and Dr. Ravichandran Krishnamoorthy; individual chapters, the contributors.

Source

Applied Research for Growth, Innovation and Sustainable Impact;pp.208-213

Date

01-01-2025

Publisher

Taylor and Francis

Subject

and Nepse banking sub-index; Arising from the analysis are risk; BSE bankex; Correlation; Index points; P-value; Returns

Coverage

Ravichandran K., Faculty of Management Studies, CMS Business School, JAIN (Deemed-to-be-University), Bangalore, India; Ajitha S., Faculty of Management Studies, M S Ramaiah University of Applied Sciences, Bangalore, India; Punniyamoorthy, School of Business and Management, Christ (Deemed to be University), Bangalore, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 978-104075308-8; 978-104116441-8;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1201/9781003684657-36

https://www.scopus.com/pages/publications/105032963642?origin=resultslist