How ArthaNiti works
How ArthaNiti measures relative strength and momentum for Indian markets, its benchmarks, data sources, backtest costs and taxes, and the full disclaimer.
What is the ArthaNiti relative-strength score?
A 0 to 100 reading of how consistently an index has beaten (above 50) or lagged (below 50) its benchmark over 3, 6 and 12 months, each adjusted for volatility. 67 or more is strong, 33 or less is weak.
What do the phases mean?
They come from a relative rotation graph on weekly data and describe the last few weeks: Pulling ahead (gaining on the benchmark, and faster), Lead fading (still gaining but the lead is shrinking), Falling behind (losing ground, and faster) and Catching up (behind but starting to gain).
Why can a high score show Lead fading?
The score looks at the past year (3, 6 and 12 months); the phase looks at the last few weeks. Like a runner far ahead in a race who has started to slow down, an index can be strong overall while its lead is shrinking.
Which benchmarks are used?
Asset classes and non-equity instruments are compared with cash (the growth NAV of an overnight money fund); equity segments and indices with Nifty 500 TRI.
Where does the data come from?
indiapassivefunds.com (ETFs, prices, NAV), niftyindices.com (official PRI and TRI), NSE bhavcopy and Yahoo Finance. It updates every trading evening.
Is this investment advice?
ArthaNiti publishes market data and analytics for education. It is not investment advice or a research recommendation, and ArthaNiti is not registered with SEBI as an Investment Adviser or Research Analyst.