---
title: Estimating Equity Risk Premium in India: A Multi-Method Analysis of Historical, Implied, and Cross-Sectional Approaches
url: https://www.ml-quant.com/papers/ssrn/5217024/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5217024
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5217024
featured: 2025-04-16
citations: 0
topic: Asset Pricing & Factors
---


# Estimating Equity Risk Premium in India: A Multi-Method Analysis of Historical, Implied, and Cross-Sectional Approaches

A paper reveals a 6-10% variation in India's Equity Risk Premium (ERP) per 1% change in growth assumptions, highlighting the impact of volatile inflation on nominal risk premiums.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5217024
- Identifier: SSRN 5217024
- Released: 2025-04-14
- First featured: Quant Letter No. 93 (2025-04-16): https://www.ml-quant.com/issues/2025-04-16/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Asset Pricing & Factors

## Related

- [Inflation's Impact on Risky Asset Prices](https://www.ml-quant.com/papers/ssrn/5094299/): A study using inflation swap prices shows that inflation sensitivity changes over time, with good inflation decreasing corporate credit spreads and increasing equity values, while bad inflation can have the reverse impact.
- [Real Estate Exposure Analysis](https://www.ml-quant.com/papers/ssrn/4947546/): Research shows both listed and unlisted real estate assets can protect against inflation, with listed real estate more exposed to short-term risk premium shocks.
- [Predicting Asset Prices with Inflation](https://www.ml-quant.com/papers/ssrn/4925404/): The research develops a model using inflation and central bank interest rates to predict US consumption growth and explain stock and bond market characteristics.
- [How Election Shocks Impact Markets: Evidence from Sectoral Stock Prices](https://www.ml-quant.com/papers/arxiv/2504.02731/): Research indicates U.S. presidential election cycles impact sectoral stock markets, with candidate preferences influencing asset prices in energy, defense, and clean energy sectors.
- [Model complexity and the performance of global versus regional models](https://www.ml-quant.com/papers/ssrn/5241880/): Complex algorithms in global models outperform regional models in cross-sectional asset pricing, contradicting previous studies favoring regional methods.
- [Dynamic Factor Correlation Model](https://www.ml-quant.com/papers/arxiv/2503.01080/): A new model with a unique variation-free parameterization of factor loadings shows adaptability and scalability in both small and large asset return environments.