  This chapter presents a calendar rebalancing approach to portfolios of stocks
in the Indian stock market. Ten important sectors of the Indian economy are
first selected. For each of these sectors, the top ten stocks are identified
based on their free-float market capitalization values. Using the ten stocks in
each sector, a sector-specific portfolio is designed. In this study, the
historical stock prices are used from January 4, 2021, to September 20, 2023
(NSE Website). The portfolios are designed based on the training data from
January 4, 2021 to June 30, 2022. The performances of the portfolios are tested
over the period from July 1, 2022, to September 20, 2023. The calendar
rebalancing approach presented in the chapter is based on a yearly rebalancing
method. However, the method presented is perfectly flexible and can be adapted
for weekly or monthly rebalancing. The rebalanced portfolios for the ten
sectors are analyzed in detail for their performances. The performance results
are not only indicative of the relative performances of the sectors over the
training (i.e., in-sample) data and test (out-of-sample) data, but they also
reflect the overall effectiveness of the proposed portfolio rebalancing
approach.
