JANUARY EFFECT IN INDIAN BANKING SECTOR WITH REFERENCE TO BSE BANK INDEX

The study investigates the existence of the January effect in India'sBanking sector. The study uses the monthly return data of the Bombay Stock Exchange's Bank Index for the period from January 2002 to June 2015 for analysis. The collected data have been analysed by making use ofDescriptiv...

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Bibliographic Details
Published in:International journal of management research and reviews 2015-11, Vol.5 (11), p.1066
Main Authors: Sudarvel, J, Velmurugan, R
Format: Article
Language:English
Subjects:
Banking industry
Banks
Stock exchanges
Studies
Volatility
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Summary:The study investigates the existence of the January effect in India'sBanking sector. The study uses the monthly return data of the Bombay Stock Exchange's Bank Index for the period from January 2002 to June 2015 for analysis. The collected data have been analysed by making use ofDescriptive statistics and Regression model to find the monthly effect in banking sector stock returns in India. The results confirm the existence of seasonality in stock returns banking sector in India and the existence of January effect. The results of the study suggest that the stock market in Indian banking sector is inefficient, and hence, investors are advised to sell their shares in September, December and April and buy shares in February and June.
ISSN:2249-7196