The Performance And Volatility Of Islamic Index As Compared To Conventional Index

Abstract

This study aims to investigate whether the Islamic index outperforms the conventional index of India. The BSE TASIS Shariah 50 and Nifty 50 are used as representative of Islamic and Conventional indices, respectively. The study uses daily data for the period 2012-2021. Econometric models such as GARCH model and risk-adjusted measures- Sharpe, Treynor and Jensons Alpha are used to achieve the objective of study. The study found that Islamic index outperforms the Conventional Index but both indexes shows volatility clustering. The study has very important implications for stock exchange, regulator, investors and the policymakers.