Perspectives on Business Management, Economics & Information Technology (PBMEIT) Now also covers research on Psychology

PBME Volume IV ISBN: 978-81-951151-2-9

NIFTY SHARIAH 50 PERFORMANCE DURING COVID-19 FIRST WAVE

Author(s): MUHAMMED SAFWAN K K

Abstract

Shariah-based indexes have gained popularity nowadays, as almost every stock market have their own Shariah indexes like Dow Johns Islamic index and Kaulalmbur Stock exchange sharia index. As there are several sectoral and thematic indexes, nifty sharia is a thematic index in NSE, India. There are several sharia indexes like nifty sharia 25,50 and 500. Several studies are analyzing the performance of sharia indexes using different parameters, the current study focuses on the efficiency of the nifty sharia by comparing its performance with the Nifty 50 during the recent financial crisis, due to the COVID-19 pandemic. For this study, the researcher has taken the daily stock return of the Nifty 50 and nifty sharia. The risk-adjusted return ratios like Sharpe, Treynor, and Jenson’s Alpha have been taken as a proxy for the performance of the indexes. The study found that the nifty sharia has outperformed the Nifty 50 during the COVID-19 pandemic period. Considering the volatility, the Nifty Shariah was less volatile and thereby less risky during the pandemic period.

Keywords: Risk-adjusted returns, shariah index, stock market index, nifty 50, Nifty Shariah

JEL Classification: G14, G15, G10

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