“WEEK-END EFFECT”: WHAT IS HAPPENING AFTER MODI GOVERNMENT CAME INTO POWER?

The returns in stock market can be attributed to fundamental factors and non-fundamental factors. The effect of fundamental factors such as P-E ratio, dividends and ROI can be explained using current theories. However, there are some non-fundamental factors whose effect on the stock market is difficult to be explained. One among the non-fundamental factors that have an anomalous effect on the stock market is the ‘Weekend effect’. Weekend effect is used to describe the phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday. This research employs data pertaining to index based securities of National Stock Exchange, from 01-06-2014 to 15-04-2016. This is to determine whether weekend effect is evident in the Indian stock market after the present government came into power and to further validate whether weekend effect can be considered as a possible decision making variable for day traders and short term investors in the present economic and political scenario.