Since the installation of Narendra Modi as India’s prime minister in May 2014, there has been a general air of optimism in the business community. In the months following the formation of his government, the stockmarkets have been on fire. Now this raises some fundamental questions: what role has Modi played in this market rally? Is there a basket of stocks that would be the best indication of Modi’s economic worldview? How has this basket compared with indicators like the Sensex?

So Outlook presents ModX—the Narendra Modi Index—through which we will track the stockmarket performance of companies that are either seen as ‘friendly’ with Modi or those that stand to ‘benefit’ from his policy focus, or...