Abstract:

The effect of seasonality is well seen in case of production and sales. For example, the increase in sales of rain coat during rainy season. Seasonality is a concept in which the event undergoes predictable and frequent changes during the calendar year. Investors invest in different classes of assets in anticipation of getting good amount of return. This return can be dependent on the factor of seasonality since we have witnessed the increase in return during particular events like Festival session, Budget Announcement, Financial Data announcement and many more. This paper helps us in disseminating information about the effects of seasonality on the return earned in the Indian stock market and give idea whether an investor can earn abnormal returns by taking the advantage of the knowledge of seasonality factor.

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