International Journal of Innovative Research and Development

Abstract

This paper investigates calendar anomalies in stock returns which occur due to deviation in normal behaviors of stocks with respect to time periods. The anomaly under study is one of the most common calendar anomaly detected in various International markets, the January effect. The research used secondary data from the stock market. The empirical research is conducted using daily logarithmic percentage returns of the S&P CNX Nifty. It is taken as a proxy of National Stock Exchange because it represents about 66.17% of the free float market capitalization of the stocks listed on NSE as on March 31, 2015. The data is taken over a period of twelve years (April 2002 – March 2014) and divided into two equal sub-periods, one from April 2002 – March 2008 as sub-period I& other from April 2008 – March 2014 as sub-period II, to take the impact of the crisis into account and to check the robustness of the results. Analysis part contains descriptive statistics of the variables, graphical representation of means of variables, cross-correlation among the variables, unit ischolar_main test to check the stationarity of time series data for the applicability of a regression model. A regression model using dummy variables is run to test the presence of these seasonal effects as used by NPR Deyshappriya in his paper in all the above mentioned three periods separately, but the results provide no support for the existence of January effect in the Indian Stock returns except significant negative October effect in sub-period II.

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Abstract

With the formation of International Monetary Fund, Forex market was emerged as a unique services market. It is a distinct trading market where awareness about market is the only way to make money to contribute in your concerned economy. Since inception of this market, US Dollar was the central unit of account and vehicle currency for settlement of international transactions. Still US Dollar has an unbeaten dominance with around 87% share in global Forex market.

In India, examples of forex trades in ancient period are businesses through silk route, export of carpets to Arabian countries or export of spices to European continent. But a formal Forex market existed since 1973 when India introduced the Foreign Exchange Regulation Act (FERA). Now the market has completed almost four decades, but still its share in global market is non recognizable.  

In this paper we explore the dynamics of Indian forex market.  We will analyze global presence of this market after FERA /FEMA regime. We will explore the possibility to promote Rupee-dominated export to make this market more vibrant along with the awareness of Indian citizen about this more profitable product.

The analysis has several limitations that should be kept in mind when giving the conclusion. One of such limitation is limited availability of authentic data on global foreign exchange market. We plan to address this limitation in our future work. We expect that the basic intuition developed in this paper will offer an opportunity to more research on the concerned topic.

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