Sustainability of value and growth investment strategies

Value and growth investing strategies have gained more importance in the recent times. The present study examines the performance of value and growth stocks during the rising & falling trends of Indian stock market. The study focuses on the mechanics of different factors putting impact on the returns earned by the categorized stocks for the bearish phases of 2001 & 2009 and bullish phases of 2003 & 2005. Our findings suggest that growth stocks have outperformed value stocks in all phases of the Indian stock market and there are no evidences of Value premium in the Indian economy. Value stocks have been more adversely affected during the economic downturns and also the returns variability have been higher for these strategies.