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Day of The Week Effect In Indian IT Sector With Special Reference To BSE IT Index

Author(s):

J.Sudarvel , KARPAGAM ACADEMY OF HIGHER EDUCATION; P.Dhanu, KARPAGAM ACADEMY OF HIGHER EDUCATION; Dr. R. Velmurugan, KARPAGAM ACADEMY OF HIGHER EDUCATION; Dr. A. Dharmaraj, KARPAGAM ACADEMY OF HIGHER EDUCATION

Keywords:

Anomalies, Day of the Week Effect, BSE IT Index, Automobile Sector and Efficient Market Hypothesis

Abstract

This study investigates the existence of the day of the week effect in India’s IT sector. The study uses the Daily return data of the Bombay Stock Exchange’s IT Index for the period from September 2005 to March 2015 for analysis. After examining the stationarity of the return series, we specify Descriptive statistics and Ordinary Least Square (OLS) Regression model to find the day of the week effect in stock returns in India. The results confirm the existence of seasonality in stock returns in India and the day of the week effect. The findings also confirm Day of the week effect does exists in Indian BSE IT index. The results of the study imply that the stock market in the Indian automobile sector is inefficient, and hence, investors can time their share investments to improve returns.

Other Details

Paper ID: IJSRDV3I80544
Published in: Volume : 3, Issue : 8
Publication Date: 01/11/2015
Page(s): 706-708

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