Value premium in Indian equity market linked to industry performance.
The study looked at whether certain industries in India have a connection to higher stock returns based on their value. They analyzed data from Indian stock market firms between 1999-2020 using different models. They found that the value effect exists in most industry groups, with small-cap value stocks in value- and growth-oriented industries showing the most significant value effect. This means that investors can expect higher returns from companies and industries that face higher risks and challenges.