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A Comparative Study on Financial Performance of Shariah Compliant Stocks and Conventional Stocks in India

International Journal of Financial Management

Volume 9 Issue 1

Published: 2019
Author(s) Name: Saidalavi K., MD Rashid Farooqi | Author(s) Affiliation: Assistant Professor, Maulana Azad National Urdu University, Hyderabad, Telangana, India.
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Abstract

Islamic Equity Market consist the companies which follow the Shariah norms in their business activities to be Shariah compliant. The objectives of this study are to examine the performance of select Shariah-compliant shares listed in BSE (Bombay Stock Exchange), India and to compare the performance of Shariah-compliant stocks with select conventional stocks. The study reveals that the performance of Shariah-compliant stocks is better than conventional stocks during the select period of study and the return of Shariah-compliant securities is less volatile than the conventional securities.

Keywords: Islamic Finance, Shariah Indices, Islamic Capital Market

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