There are three main Indices in Indian Stock Market - Nifty 50, SENSEX and Nifty 500. Nifty50 has 50 large Capital stocks and SENSEX has 30. Nifty 500 index which covers about 96.1% of the stocks traded. SENSEX and NIFT50 both essentially track each other with Nifty50 somewhat outperforming both SENSEX. and Nifty 500; Hence we consider Nifty50 as our bench mark to construct portfolios that beat Nifty50.
In our portfolio construction we consider all stocks in Nifty 500 stocks since that takes care of 96% of the equities in the Indian stock market and construct portfolios out of these 500 that is expected to beat Nifty 50.
If you are new to investing, click For Indian beginners. This will give you step by step instruction how to start trading Indian stocks.
The risk tables for 2022-10-01 are given in Ind_risktable_2022_10
Use this and the procedure to construct stock portfolio as explained in Portfolio Management to construct your own portfolio.
You can use the following figure obtained from applying our method to historic data 2007-2020, as a guide line to determine which risk you are comfortable with.
An example portfolio for 2022-10-01, created using Steps 1-4 in Portfolio Management is given below. with the risk range of our choice. Use this example to construct portfolio of your risk choice and the amount of money you want to invest.
Ticker risk file for 500 Indian stocks > Ind_risktable_2022_10
Risk range: .751 to .83, average .793,
No. of stocks for the portfolio = 15,
Total Initial investment = Rs.100000.
Investment/stock = 100000/15 = Rs. 6667
The following table shows the securities chosen for the portfolio. Columns 1-4 give the ticker symbol, company name, risk value and the current price, for each security. Noting that an equal amount of money is to be invested in each security, the number of shares bought for each security is given in column 5.
The information and tools provided here (including the links) are research tools to help self-directed investors evaluate securities. The criteria and inputs entered are at the sole discretion of the user, and all strategies with pre-selected criteria are solely for the convenience of the user. Information supplied on this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation. EntropicDynamics makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.