Title: Enhancing investment decisions in Indian stock market through MCDM approach

Authors: Arup Mitra; Arun Kumar Jalan; Prabir Biswas; Sayan Gupta

Addresses: Department of Management Studies, Maulana Abul Kalam Azad University of Technology, Simhat, Haringhata, Nadia – 741249, India ' Basic Science Department, MCKV Institute of Engineering, Liluah, Howrah-711204, India ' Economics Department, Harimohan Ghosh College, Kolkata 700024, India ' Department of Supply Chain Management, Dr. B.C Roy Academy of Professional Course, Fulijhore, Durgapur-713206, India

Abstract: The purpose of this paper is to compare a set of Indian stocks listed in the Morgan Stanley Capital International (MSCI-114) Index. The present paper considers the fundamental performance of the stocks as a basis for comparison. A number of financial ratios have been used as criteria to compare the performance of the stocks. The underlying objective is to formulate a portfolio for investment decision-making. Since the decision-making is based on the performance of the stocks subject to multiple criteria, the current work presents a multiple-criteria decision-making (MCDM) framework. Priority of the criteria is based on objective information, and this study uses the inter-criteria correlation method for deriving the weight. It is compared and ranked as per their performance using a compromise solution-based model that trades off the criteria effect with considerable reliability and stability. Finally, the mean-variance (MV) model is incorporated for identifying adverse risks and optimising the portfolio.

Keywords: decision making; ratio; portfolio; investment; stock market; multiple-criteria decision-making; MCDM.

DOI: 10.1504/IJICBM.2025.147157

International Journal of Indian Culture and Business Management, 2025 Vol.35 No.3, pp.291 - 327

Received: 21 Aug 2023
Accepted: 25 Aug 2023
Published online: 11 Jul 2025 *

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