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Research Paper | Finance | Volume 15 Issue 5, May 2026 | Pages: 199 - 203 | India
Day-of-the-Week Anomaly in Stock Returns: A Study of Pre- and Post-Merger Analysis of Canara Bank
Abstract: Stock market anomalies such as the day of the week effect challenge the weak form Efficient Market Hypothesis by suggesting that returns can be predicted using past information. This study examines whether a day-of-the-week effect exists in the daily returns of Canara Bank (CANBK) and the Nifty Bank index, and whether the pattern changed after the amalgamation of Syndicate Bank into Canara Bank in April 2020. Using daily closing prices, the study computes daily returns and applies one-way ANOVA across weekdays, as well as independent sample t tests to compare pre and post merger CANBK returns and CANBK versus Nifty Bank returns. Across all tests, the null hypotheses could not be rejected, indicating no statistically significant day-of-the-week effect in either CANBK or Nifty Bank, and no significant difference in weekday patterns before and after the merger or between CANBK and Nifty Bank. These findings support weak form efficiency with respect to day-of-the-week anomaly in the Indian banking segment during the sample period and suggest that simple timing strategies based on weekdays are unlikely to generate abnormal returns in these securities.
Keywords: Day of the week effect, Calendar anomalies, Canara Bank, Nifty Bank, Merger
How to Cite?: Mokshitha Dirisala, Dr. Raghavendra K S, "Day-of-the-Week Anomaly in Stock Returns: A Study of Pre- and Post-Merger Analysis of Canara Bank", Volume 15 Issue 5, May 2026, International Journal of Science and Research (IJSR), Pages: 199-203, https://www.ijsr.net/getabstract.php?paperid=SR26430102500, DOI: https://dx.dx.doi.org/10.21275/SR26430102500