IIMA-AuraArt Indian Art Index hits new high in Q3
Covid-19 did dampen price momentum in the art market, but the impact was far more muted than in traditional asset classes
image for illustrative purpose
Mumbai: The IIMA-AuraArt Indian Art Index (IAIAI) has hit new high in Q3 at 5,655. Thus, it has grown by 38.64 per cent over last quarter.
IAIAI started with 100 in beginning of 2001 and has grown at CAGR of 18 per cent over a 25-year period.
Talking to Bizz Buzz, Dr Prashant Das, Associate Professor (Finance and Accounting/Real Estate), Indian Institute of Management, Ahmedabad says, “The IAIAI brings fresh excitement to the business of creative products, even though it is built on auctions of master artists. I have applied its pricing model to works by lesser-known painters, and the accuracy in the lower-price segments is striking. As a student of finance, this intersection of art and analytics is genuinely exhilarating.”
Covid-19 did dampen price momentum in the art market, but the impact was far more muted than in traditional asset classes. Since then, the IAIAI has shown a clear upward trend, albeit one accompanied by noticeably higher volatility, he added.
The Q3 results reinforce the value of such a methodology. With auction turnover for the 25-artist basket hitting Rs724 crore, far exceeding the long-term average, IAIAI suggests there’s a broad-based increase in demand and valuations across multiple works. This supports a more durable argument that India’s art market is experiencing structural growth, liquidity, and expanding breadth.
Moreover, there is a classic technical bullish breakout. IAIAI has crossed 2006 peak of around 3,200 in 2022/2023, then witnessed a minor correction - that tested the earlier resistance line (now acting as support) - before continuing with the new uptrend, with renewed vigour,
landmark innovation in India’s art-market ecosystem earlier considered to be a notoriously opaque space.
IAIAI leverages a data analytics model, wherein each artwork’s value is adjusted for multiple characteristics: medium (oil, watercolor, mixed media), size, date of creation, auction house, artist, etc. By controlling for these variables, the index isolates the effect of time, abstracting away from distortions caused by changing mix of artworks offered for sale (for instance, a switch from small sketches to large oil canvases). The index’s quarterly re-calibration, based on actual auction transactions, makes it responsive yet stable, giving collectors, institutions and analysts a reliable benchmark.
Rishiraj Sethi, Director, Aura Art Development, says, “In markets where data is thin and valuations often anecdotal, IAIAI offers much-needed transparency and standardisation.” It demystifies the art-market for both seasoned investors and institutional buyers, encouraging more confidence and participation.
In effect, IAIAI is as much a signal of maturation for India’s art-investing ecosystem as it is a quantitative benchmark. Its growing acceptance can pave the way for more institutional investment, art-financing products, and perhaps even securitisation.
