 "Illustration: Binay Sinha")
A study by Ambit Capital concludes that companies enjoying a political nexus seldom make handsome gains for investors.
It says if a fund manager is mandated to deliver returns over a short time frame, staying away from politically-linked stocks is a sure way to boost risk-adjusted returns.
Its P-75 index, a subset of BSE 500 stocks, conceptualised in 2009, comprises 75 companies whose core competitive advantage by its assessment is on account of 'political connectivity'. "We have repeatedly used the index as a barometer for how much those in power in the country want to help certain corporates," state Ritika Mankar Mukherjee
