INDIA, June, 2011: (by Anand Kalyanaraman, The Hindu Business) To an observer, it would seem that the powerful and the wealthy are more susceptible to the superstition phenomenon. And omens, superstitions and quirks abound in stock markets. Here’s a list of some interesting ‘can’t-be-proven-but-it-exists’ phenomena which contribute to the song and dance on the stock markets in Mumbai.
Well begun is half-done! So come “Muhurat trading” on the commencement of the traditional New Year during Diwali every year, and the Sensex invariably moves up. Many investors place symbolic buy orders that day to mark their fresh trades. Since 2000, on all occasions but one, the Sensex has risen on Muhurat day. Thus, in the belief that as Muhurat goes, so goes the year.
There are investors who make stock market investments only in the name of the lady of the house (Gruhlaxmi). This applies especially in the case of fresh issues in the market. The belief is that when Laxmi, the Goddess of wealth (symbolized by the lady in the house) makes an investment, the chances of it appreciating are enhanced.
As an extension of the above sentiment, some investors are loath to making sales on Fridays. It is believed that selling on a day Laxmi is traditionally worshipped may not be a good idea. As the thought goes, it just isn’t worth the risk of antagonizing the Goddess of wealth!