An Examination of Stock Market Anomalies: A Study in the Context of Make in India Movement

Abstract

The existence of calendar anomalies is the violation of Efficient Market Hypothesis (EMH). Stock Market anomalies are the patterns that do seem to lead to abnormal returns more often than not, and since some of these patterns are based on information which is publicly visible, market anomalies present a challenge to the semi-strong form of the EMH, indicating that fundamental analysis does have some value for the individual investor. The existence and predictability of stock market anomalies has been a subject of different studies which detects empirical evidences of abnormal yield distribution. The predictable seasonal returns behavior may lead to profitable trading strategies and in turn abnormal returns. The Day-of-the-Week Effect is the most common tested anomaly in India and abroad. In the current research paper, the main focus is to examine the impact of Make in India Movement on stock market anomalies with reference to BSE Sensex. The closing prices for Sensex have been taken for the purpose of analysis. However, the investor must keep in mind that these anomalies can persist or disappear in a certain course of time. Keywords: