A Study on the Indian Banking Sector Stock Performance Over the Decades

This research study has mainly focused on understanding how the banking sector stocks listed on the NSE have performed over the past 20 years. The main objective is to determine which type of banking sector companies, i.e., whether the big or small companies or whether the banks with better valuations have performed well or not. This is done by performing a regression analysis on various portfolio combinations constructed using the Fama-French three-factor model, which helps us in building the 6 types of portfolios based on factors such as market cap, price-to-book value, etc. The findings confirm that the coefficient tagged with the small minus big variables has always given better returns compared to the stocks that are valued low or high.