Semi Month Effect in Indian Banking Sector with Reference to NSE Bank Index

M.Sudha
Research Scholar, Department of Commerce
Karpagam Academy of Higher Education, Coimbatore-641 021.
ID: sudhajuju@gmail.com
Under the Guidance of
Dr. J.Shanmuganandavadivel
Professor, Department of Commerce
Karpagam Academy of Higher Education, Coimbatore-641 021.
ID: shanmuganandavadivel.jaganathan@kahedu.edu.in

Abstract:The paper explores the occurrence of the semi-month outcome in the banking market of India and to be more exact, the NSE BANK Index (Bank Nifty) during the time interval between January 2016 and December 2025. Semi-month effect refers to systematic changes in the returns of the stock that exist in the first half and second half of every month of the calendar. Data on the analysis is secondary based on the closing prices of the NSE BANK Index, being reported by theNational Stock Exchange (NSE) on a daily basis. Monthly returns were established and then classified based on the first and second half of every month. Return behavior analysis used descriptive statistical methods and Wilcoxon Signed Ranks Test that used due to the non-normality of the data as indicated by Shapiro-Wilk test. The results illustrate that the mean of returns is slightly different in the two and half-month holding periods and the statistical results are obtained based on the Wilcoxon test which shows that there is no statistically significant difference. Thus, this research arrives at the conclusion that the semi-month effect on the NSE BANK Index during the period of the research does not significantly exist. The findings indicate that the Indian banking industry has the traits of weak-ormmarket efficiency and investors are unable to make abnormal returns through semi-month patterns only. Keywords - Semi-Month Effect, Calendar Anomalies, NSE BANK Index, Bank Nifty, Indian Banking Sector, Stock Returns, Market Efficiency, Wilcoxon Signed Ranks Test, Seasonality in Stock Market, Indian Stock Market