BSE 500 versus S&P 500 Indices Compare 31Mar2023 - vrk100 - 01Apr2023

BSE 500 versus S&P 500 Indices Compare 31Mar2023

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(Update 28Jan2024, with data as of 31Dec2023, is available here)

 

This is an update of two earlier blogs on the topic: 1) Comparison as on  31Dec2022 and 2) Comparison as on 31Dec2021. As we've completed another quarter since the previous update, the following tables provide information, as on 31Mar2023, about how India's BSE 500 index and the US' S&P 500 index stack up.

 

 

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Related blogs on US stocks / ETFs / Mutual Funds:

BSE 500 versus S&P 500 Comparison 31Dec2022 

 

Compare ETFs based on S&P 500, Russell 2000 and MSCI EM 26May2022

 

BSE 500 versus S&P 500 Indices 31Dec2021

 

NSE IFSC Introducing Trading in US Stocks for Indian Investors 10Aug2021

Letter to an Emerging Dabbler 28Jul2021

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Related blogs on Indian Stock Indices: 

Nifty 50 Index Quarterly Movement 31Mar2023

Nifty 50 Index Yearly Movement 31Dec2022

NSE Indices Comparison 31Dec2022 

BSE 500 versus S&P 500 Comparison 31Dec2022

Nifty 50 Index quarterly movement Jun2022

 

Nifty 50 Index quarterly movement Apr2022

Nifty 50 Index Evolution 2011 to 2021

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Fundamentals:  

 

Table 1: Risks, Returns and Valuation parameters >  

 

On a 1-year, 3-year, 5-year and 10-year basis, BSE 500's returns are superior versus those of S&P 500. On a risk-adjusted basis too, BSE 500 provided superior return (3-year Sharpe ratio). (BSE 500 returns are in Indian rupee terms, whereas those of S&P 500 are in US dollar terms).

Top 10 Stocks:  

Table 2: Top 10 stocks and Concentration Risk > 

 

 

Concentration risk is much higher in BSE 500 versus S&P 500 based on the share of top 5 and 10 stocks in the indices. You can compare their share for the latest period to other periods of 2022 and 2021 (blog links provided above). 

 

During the first quarter of 2023, chip-maker Nvidia Corp climbed spectacularly from nowhere to fourth position (if you include Alphabet's two class shares, Nvidia would be at fifth rank) in the S&P 500 index. The share price got a boost in the past quarter due to optimism around ChatGPT developed by OpenAI. ChatGPT was lauched in Nov2022.

 

ChatGPT is a chatbot based on artificial intelligence (AI), built on large language models. ChatGPT gives responses to one's questions based on large information.  GPT is short for generative pre-trained transformer. Some experts predict ChatGPT will be a threat to the business model of Google search engine.

Nvidia's semi-conductor chips are expected to be benefited by the progress of ChatGPT -- as compared to its rival chip-makers, Intel and AMD.

 

 

Top 10 Sectors:  

 
 

Table 3: Top 5 Sectors and Concentration Risk >

 

 

 

Sector concentration risk is slightly lower for BSE 500 as compared to S&P 500, based on the share of top 3 and 5 sectors in the indices. You can compare their share for the latest period to other periods of 2022 and 2021 (blog links provided above).

 

During the first quarter of 2023, BSE 500 delivered a total return (including dividends) of minus 5.66 percent, whereas S&P 500 provided a positive total return (including dividends) of 7.5 percent in the same period.

 

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References and Additional data:

 

S&P Dow Jones Indices - S&P 500 and other US indices monthly factsheets, index methodology and others 

S&P Dow Jones Indices - BSE 500 and other BSE indices monthly factsheets, index methodology and others 

BSE 500 index monthly factsheet - S&P Global

S&P 500 index monthly factsheet - S&P Global

Motilal Oswal Nifty 500 fund - monthly factsheet

iShares Core S&P 500 ETF - monthly factsheet

ICICI Pru BSE 500 ETF - Morningstar India

 

 

 

  

 

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Nifty 50 Index Quarterly Movement 31Mar2023 

Mutual Fund Asset Class Returns 31Mar2023

 

Global Market Data 31Mar2023

 

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Weblinks and Investing

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Disclosure:  I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.

Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets. 

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He blogs at:

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