Analyzing Sector Rotation Investment Strategi...

Analyzing Sector Rotation Investment Strategies in the Indian Stock Market

Author Name : Ravi Kumar, Poonam Saini

ABSTRACT This study examines the impact of the sector rotation investment strategy on significant stock returns within the National Stock Exchange of India (Nifty 500) from January 2009 to December 2020. To assess the significance of stock returns, the study uses monthly stock prices from a sample of 500 stocks listed on the NSE and independent ttests at a 0.05 significance level. The research reveals that the sector rotation return volatility investing strategy yields superior stock returns as more diversify the investment from Top 1 to Top 6 portfolios. These findings have implications for investors, portfolio managers, and investment advisers since they give information on how to boost returns in the Indian stocks market. Given India's status as a prominent developing market, the study's results have far- reaching consequences for institutional wealth managers and global portfolio flows, therefore contributing to global wealth creation.