Increased Trading Hours and its Post-Impact on Market Efficiency: Empirical Evidence from the Indian Stock Market

2010 ◽  
Author(s):  
Ajay Kumar Chauhan ◽  
Khagesh Agarwal
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Empirical Evidence ◽  
Post Impact ◽  
Indian Stock Market

Institutional Herding: Causality and Persistence

2021 ◽  
pp. 227797522110402
Author(s):  
S S S Kumar
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Mutual Funds ◽  
Institutional Investors ◽  
International Markets ◽  
Jel Classification ◽  
Trading Strategies ◽  
Trading Activity ◽  
Indian Stock Market ◽  
Institutional Herding

We investigate the causality in herding between foreign portfolio investors (FPIs) and domestic mutual funds (MFs) in the Indian stock market. The estimated herding levels are considerably higher than those observed in other international markets, and herding is prevalent in small stocks. We find that institutional investors follow contrarian-trading strategies, unlike what was documented in most other markets. Analysis of the aggregate herding measure shows a bi-directional causality between FPIs and MFs. Further analysis using directional herding measures indicate no evidence of causality between institutional herds on the sell-side. But we find causality on the buy-side and it is running in both directions between FPIs and MFs, implying a feedback of information. Given the tendency of institutions for herding in small stocks, adopting contrarian-trading strategies, the observed sell-side causality is perhaps having a salubrious effect. As institutional investors are contrarians, their trading activity will lead to price corrections in small stocks aligning with the fundamentals, thereby contributing to market efficiency. JEL Classification: C23, C58, G23, G15, G40

Day Of The Week Effect: Empirical Evidence From Indian Stock Market

Paradigm ◽  
2004 ◽  
Vol 8 (2) ◽  
pp. 9-13 ◽  
Author(s):  
Mohit Gupta ◽  
Navdeep Aggarwal
Keyword(s):  
Stock Market ◽  
Empirical Evidence ◽  
Day Of The Week ◽  
Indian Stock Market
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