Effect of Going Green on Stock Prices: A Study on BSE-GREENEX

Environmental concern is becoming an important invest theme for progressive investors the world over. Investors are opting to invest in organizations which utilize environmentfriendly technologies and business practices to reduce their carbon footprint. Such businesses are known as green businesses. Investors are preferring organizations which have environmental concerns built into their vision and mission. To provide these progressive investors with a benchmark to assess the performance of green stocks vis-à-vis the rest of the market, certain green stock market indices have been constructed all over the world which constitute of stocks of companies guided green business philosophy. In India BSEGREENEX is such an index. This paper analyzes the performance of BSE-GREENEX vis-à-vis other broad based indices like the BSE-SENSEX and the BSE-500 to test whether it is financially rewarding too for the investors to invest in green stocks. Moreover this paper also attempts to model the said three indices for prediction over a very short period of a day. The analysis unveils the superior performance of BSE-GREENEX over BSE-SENSEX & BSE-500. General Terms Green Stock Performance, Predictive Modeling.