The Impact Of The Weekend Effect On Indian Stock Market

Weekend effect is also known as the Friday and Monday effect. A phenomenon in stock market in which stock returns on Monday are comparatively lower than those of the immediate preceding Friday. Some theories explain the effect of weekend by releasing bad news on Friday instead of Monday. Stock market is highly volatile market and it affects the all types of information that investors and tradershave. The trading behavior of investor is not same due to the perception of individual all the investor have different opinion on the weekend trading. Trading strategy of individual investor are affected by the wealth and liquidity and particular interest toward the particular stock
Efficient market stated that stock’s return is indifferent in each

This study identifies the factors affecting the investors on weekend and which factors affect the weekend trading and what is the overall impact on volume of the stock market.
1.1Turn-of-the-month (TOM) effect
This effect means that stocks systematically perform better around the turn of the month (defined as the time from the last trading day in a month through to the fourth trading day of the following month).
1.2The weekend

Both of them confirmed the existence of a weak form of the weekend effect in the Indian market. However, none of them could give a concrete reason to explain the weekend effect in India. The most satisfactory explanation that has been given for the lesser returns on Mondays compared to Fridays is that usually the most unfavorable news appears during the weekends. These unfavorable news have a negative influence on the majority of the investors, causing them to sell on the following