Title: Value versus growth stocks: sector specific approach in Indian scenario

Authors: Amit Hedau; Sasikanta Tripathy

Addresses: National Institute of Construction Management and Research, Hyderabad, India ' Department of Economics and Finance, College Business Administration, University of Bahrain, Kingdom of Bahrain

Abstract: The investment in the stock market needs a strategy to generate the superior returns. Since, all the stocks cannot qualify to find a place in the portfolio, stock selection is the main task of the investor. The present paper attempt to validate the theory of value investing in the IT, FMCG and banking sector of the Indian capital market. Based on the eight years data, stocks are classified as value and growth stock in all the three sectors. Subsequently, the monthly returns are observed to analyse the performance of value and growth stock portfolio. The risk based adjusted returns are calculated for each sector using CAPM model and statistical significance is tested using Mann-Whitney U test. The results suggest that the value premium exists in the observed data, however the quantum of premium is decreasing in comparison to the earlier empirical evidences. The findings of the paper are an insightful information to the investors of capital market in India.

Keywords: value stock; growth stock; value investing; value premium; Indian capital market.

DOI: 10.1504/IJBIR.2026.153089

International Journal of Business Innovation and Research, 2026 Vol.39 No.4, pp.443 - 457

Received: 26 Oct 2022
Accepted: 03 Jan 2023
Published online: 22 Apr 2026 *

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