31, March 2025

An empirical study of sustainable stock market indices in India: Are they more lucrative than conventional stocks?

VOLUME-11; ISSUE-3; MAR-2025

Author(s): 1. Sakshi Singh, 2. Shivani Singh

Authors Affiliations:

  1. Research Scholar, Faculty of Commerce, Banaras Hindu University, Varanasi, India, 2. Research Scholar, Faculty of Commerce, Banaras Hindu University, Varanasi, India

DOIs:10.2015/IJIRMF/202503027     |     Paper ID: IJIRMF202503027


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The purpose of the research work is to assess sustainable investment indices of the Bombay Stock Exchange (BSE 100 ESG, CARBONEX, and GREENEX) and how they perform as compared to their parent index, i.e., S&P BSE 100. The study uses five years of daily price data of selected indices to assess the correlation between the index and conditional volatility in the dataset. We used the GARCH (1,1) methodology to investigate the volatility clustering. The findings suggest that the four indices have significant levels of volatility in the long run as well as in the short run. The study will benefit investors who wish to invest more in businesses with eco-friendly and sustainable practices. The results conclude that involving environmentally friendly company stocks in the portfolio will give equivalent or even higher returns as against a traditional portfolio, which is a favourable position for investors interested in maintaining society's ecological and social welfare.

socially responsible investments, green stocks, GARCH model, Bombay stock exchange, sustainability index

1. Sakshi Singh, 2. Shivani Singh(2025); An Empirical Study of Sustainable Stock Market Indices in India: Are they More Lucrative than Conventional Stocks?,  International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-3, Pp.170-176.          Available on –   https://www.ijirmf.com/

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