{"title":"New moon day anomalies of Amavasya and Muhurat trading: Gestalting the role of culture and institutions","authors":"Avinash Ghalke , Satish Kumar , Ram Kumar Kakani , Kameshwar Rao V.S. Modekurti","doi":"10.1016/j.iimb.2023.05.003","DOIUrl":null,"url":null,"abstract":"<div><p>We study the socio-cultural ecosystems, along with cross-country investments and global flow of foreign capital in a local milieu, India, having multiple stock exchanges and listed firms. India's varied investor profiles exhibit a marked preference for certain “special” days given their religious beliefs. This study tests the abstinence hypothesis to examine the “new moon day” effect, considered inauspicious by the local dominant investing community, and the duality of minds, based on India's annual festival, Diwali, considered auspicious to make investments and commence any wealth-generating activity (<em>Muhurat</em> trading). We find that the Indian markets generate a significant negative return on a Friday new moon day and a significant positive return on the Muhurat trading day. We propose a profit-making trading strategy that exploits the impact of the new moon day.</p></div>","PeriodicalId":46337,"journal":{"name":"IIMB Management Review","volume":"35 2","pages":"Pages 137-148"},"PeriodicalIF":1.7000,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"IIMB Management Review","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0970389623000526","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
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Abstract
We study the socio-cultural ecosystems, along with cross-country investments and global flow of foreign capital in a local milieu, India, having multiple stock exchanges and listed firms. India's varied investor profiles exhibit a marked preference for certain “special” days given their religious beliefs. This study tests the abstinence hypothesis to examine the “new moon day” effect, considered inauspicious by the local dominant investing community, and the duality of minds, based on India's annual festival, Diwali, considered auspicious to make investments and commence any wealth-generating activity (Muhurat trading). We find that the Indian markets generate a significant negative return on a Friday new moon day and a significant positive return on the Muhurat trading day. We propose a profit-making trading strategy that exploits the impact of the new moon day.
期刊介绍：
IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.
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