A COMPARATIVE STUDY ON THE EFFECT OF BSE GREENEX & BSE SENSEX ON GREEN STOCKS

One of India's first carbon-efficient indices is BSE-Greenex, which was introduced by the Bombay Stock Exchange. It provides asset managers with a benchmark to create products that direct investor capital into ecologically conscious enterprises by monitoring the carbon-emission performance of 25 companies listed on the exchange. In light of this, the current study, "A Comparative Study on the Effect of BSE Greenex & BSE Sensex on Green Stocks," is highly pertinent to the state of the market. Investors can find companies that use energy-conscious methods by using the Greenex index. The current study is limited to five years and uses micro-level characteristics from BSE-listed data. International metrics have also been taken into account because environmental benchmarking differs among international exchanges. The main goal is to compare Greenex's financial performance to that of the BSE Sensex utilising daily closing values from January 1, 2013, to December 31, 2017. The annual returns for both indices were calculated using these figures and compared year over year. The factors affecting Greenex's mobility during the study period are further examined in this work. The Index of Industrial Production (IIP) and the automobile industry have a greater influence on Greenex's overall carbon-credit standing, according to distance-correlation analysis performed on a few economic indicators. This effect is influenced by changes in crude oil prices during the time period. Greenex also showed notable effects from Agill, Agxl, and Solarx, all of which were connected to the renewable-energy index. This creates more opportunities for studying how the Greenex index in India is shaped by industrial growth and the green transition of the automotive industry.