EFFECT OF ZODIAC SIGNS AND PLANETS ON INDIAN STOCK MARKET

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1 EFFECT OF ZODIAC SIGNS AND PLANETS ON INDIAN STOCK MARKET

2 Dr. Pinkal Shah is presently Associate Professor at The School of Management, Sumandeep Vidyapeeth, Vadodara, Gujarat. His areas of interest have been the Investment Management, Strategic Financial Management & Behavioral Finance. He is having eight year of experience including industry, academic and research. He holds B.Com (Accounting & Auditing) from M.S. University of Baroda, MBA (Finance) from Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat, PG Diploma in Marketing Management from Narsee Monjee Institute of Management Studies, Mumbai. He has completed his Ph.D in area of Financial Astrology from Veer Narmad South Gujarat University, Surat. He has been invited by several academic institutions and investment consultants for seminars as a key note speaker/resource person in area of financial astrology and investment management and training programmes/workshops in area of technical analysis. He has published 8 research papers/articles in various reputed national and international journals &news papers and presented 10 research papers in area of financial astrology & investment management at various national and international conferences. Dr. Jaydip Chaudhari is presently Associate Professor at Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat, Gujarat. His areas of interest have been the Investment Management, ERP, Entrepreneurship& Business Strategy. He is having eighteen years of experience including industry, academic and research. He holds B.E.and MBA from M.S. University of Baroda, Vadodara and Ph.D. from Department of Business & Industrial Management, Veer Narmad South Gujarat University, Surat. To his credit as a dynamic researcher, he has completed several research projects, published 3 books presented more than 25 research papers at different national and international conferences and published more than 40 research papers papers/articles in various reputed national and international journals &news papers. He has produced 10 Ph.D.s and guided more than 200 Dissertations. He has been invited by various academic institutions, chamber commerce and organization as a key note speaker and resource person. He holds various distinguish academic positions in different reputed universities and organizations across the India.

3 EFFECT OF ZODIAC SIGNS AND PLANETS ON INDIAN STOCK MARKET Dr. PINKAL SHAH Dr. JAYDIP CHAUDHARI 2014 Scholars World A Division of Astral International Pvt Ltd New Delhi

4 2014 AUTHORS Publisher s note: Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publisher and author cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the author. The Publisher is not associated with any product or vendor mentioned in the book. The contents of this work are intended to further general scientific research, understanding and discussion only. Readers should consult with a specialist where appropriate. Every effort has been made to trace the owners of copyright material used in this book, if any. The author and the publisher will be grateful for any omission brought to their notice for acknowledgement in the future editions of the book. All Rights reserved under International Copyright Conventions. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written consent of the publisher and the copyright owner. Cataloging in Publication Data--DK Courtesy: D.K. Agencies (P) Ltd. <docinfo@dkagencies.com> Shah, Pinkal. Effect of zodiac signs and planets on Indian stock market / Pinkal Shah, Jaydip Chaudhari. p. cm. Includes bibliographical references (p. ). ISBN Stock exchanges--india. 2. Astrology and business. 3. Stock exchanges and occultism--india. I. Chaudhari, Jaydip, joint author. II. Title. DDC Published by Laser Typesetting Printed at PRINTED IN INDIA : Scholars World A Division of Astral International Pvt. Ltd. ISO 9001:2008 Certified Company 81, Darya Ganj, Near Hindi Park, Delhi Medical Association Road, New Delhi Phone: , Fax: info@astralint.com Website: : APCON, New Delhi : Replika Press Pvt. Ltd.

5 Preface An efficient economy is considered as a heart and soul of any country. The investment is life-blood for any economy to grow and nurture for creating wealth for nation. Financial market is blood-vessel for economic system as it facilitates transformation saving into investment into production and consumption. A well-organized financial market offers different investment avenues consisting various risk free investment alternatives and risky investment alternatives. Out of these bunch of investment alternatives, investment in secondary market segment of capital market, popularly known as equity market or share market or stock market, is prevalent amongst the investors fraternity. Since it is a part of risky investment avenues, it is exposed with risk along with possibilities to earn higher return. Therefore, one has to follow scientific process of investment management before investing into equity market. Security Analysis is considered as very crucial stage in the process of investment management which enables one to take decision related with whether to buy or sell particular security/stock/share. There are five different approaches of security analysis viz. Fundamental Analysis, Technical Analysis, Efficient Market theory, Mass Phycology and Financial Astrology. At present Fundamental Analysis and Technical Analysis are very popular and widely used approaches for predicting share prices. The Fundamental Analysis mainly answers as to which stocks should be bought or sold for long period of time while Technical Analysis mainly deals with the price at which one should enter into the trade and exit the trade with stop loss. But principles of both the theories fail to determine proper timing of entry and exit from trade so that maximum profits are earned or loss is minimized. The approach of Financial Astrology answers this issue. Financial astrology predicts prices in stocks or commodities or foreign exchange (FOREX) market price based on situation of planets, stars and signs. The unique application of financial astrology in share market invokes an interest of researcher to explore the further research opportunities in

6 (vi) area of application of financial astrology in Indian stock market or equity market where it is not very popularly known. Financial Astrology is not scientifically followed like fundamental and technical analysis amongst investors fraternity in India as one of the approaches of security analysis due to lack of research work. Therefore, the topic in area of financial astrology is chosen by the researchers to scientifically understand whether it has its application in Indian share market or not. The main objectives for present research work are: 1. To study the effect of conjunction between the planet(s) or planetary positions and zodiac signs as per Vedic Astrology on overall price movement of Indian Equity Market. 2. To study the effect of conjunction between the planet(s) or planetary positions and zodiac signs as per Vedic Astrology on sector specific price movement. 3. To study whether a particular planetary position in zodiac signs is having significant effect on all the sectors of economy to the same extent or not. In the present research work in the book, different possible combinations from single planet or double planets conjunctions with different zodiac signs are selected and efforts has been made to check their impact on price movement in Indian Equity Market. BSE SENSEX, Banking Sector, Automobile Sector, IT Sector, Metal Sector, Healthcare Sector, FMCG & Retail Sector, Energy Sector and Capital Goods and Infrastructure sectors are selected as a representative Indian Equity Market. The research is based on secondary data. The historical data of planetary conjunctions are collected from Asto-Prophet A Complete Software for Vedic Astrology & of stock prices are collected from Spider Ace Software An authorized data base vendor of BSE & NSE. The time horizon for collected data is from January 1993 to December The collected data are tested for its reliability and validity and are found to be satisfactory. The collected data of above mentioned two sets then are compiled by organizing them in the chronological order from 1 st January 1993 to 31 st December The daily price fluctuation/movement or daily return in prices is calculated considering the percentage change in the closing stock prices. The combinations are then segregated as per their occurrences during eighteen years. Out of 540 maximum possible planetary combinations, 264 combinations/conjunctions possess sufficient amount of observations/data for meaningful statistical analysis.

7 (vii) Then the data of these 264 conjunctions are analyzed by using descriptive statistics, Kolmogorov-Smirnov Test, Two Sample Independent T-Test or Mann-Whitney U Test (whichever is applicable), Chi Square Test, Strike Rate and Average Gain to Average Loss ratio and One Way Analysis of Variance (ANOVA) to achieve the objectives of research. At the end of analysis it is concluded that Some of the planetary conjunctions with zodiac signs have significant effect on price movement in Indian Equity Market. The planetary positions significantly influence the bullish and bearish short term to long term trend in the prices of Indian equity market. The planetary positions have sector specific effect in Indian Equity Market. Majority of the planetary positions are not equally significant amongst the different sectors of economy. The area of financial astrology is highly unexplored area, specifically, in terms of scientific research. Therefore, copious numbers of research opportunities exists in area of financial astrology. By using the art and science of financial astrology, investors can even filter their call to buy or sell which are generated by other approaches of security analysis so that their return will increase at minimum level of risk. It certainly helps the investors fraternity to take buy or sell decisions more precisely for short term to long term time period in managing their investment portfolio. Dr. Pinkal Shah Dr. Jaydip Chaudhari

8 Acknowledgements The research work done in the book is an important destination of our journey to research in area of financial astrology. It needs support of many people. We owe a great many thanks to great many people who helped and supported me during my research work. We express our sincere gratitudes to Dr. A. S. Abani (Sr. Professor & Founding Director, Bhagwan Mahavir College of Management, Surat) for igniting a thought process to pursue a Ph.D. in area of financial astrology. Our sincere thanks go to Dr. Renuka Garg, Professor & Head, Department of Business and Industrial Management, Veer Narmad South Gujarat University, Surat. We express our sincere gratitude to Mr. Rajiv Khatlawala (Founder & CEO Value Trade Academy & Portfolio Consultant, Vadodara), Mr. Harish Panchal (Businessman & Investor in stock market, Vadodara) for his valuable suggestions and ideas. I (P.S.) would like to thank all my colleagues and authorities of Sumandeep Vidyapeeth who helped me in undertaking and publishing this research work. Last but not least my (P.S.) deepest gratitude and indebtedness goes to my family - My Parents and My wife, for their persistent love and support. It is not possible to complete this research work without their care and backing. We shall also thank all those whom we have not quoted unknowingly, but have helped us directly or indirectly. Dr. Pinkal Shah Dr. Jaydip Chaudhari

9 Contents Preface Acknowledgements 1. Introduction 1 2. Conceptual Framework 7 What is Finance? 7 Branches of Finance 9 Financial Management and Investment 19 What is Investment? 19 Investment Management 21 Process of Investment Management 26 Security Analysis 29 About Equity Market (Stock Market/Share Market) 33 About Astrology 40 Economic Astrology 44 Utility of Financial Astrology in Stock Market 50 Financial Astrology - A Global Scenario 51 Flow Chart Demonstrating the Integration of Economics and Astrology into Financial Astrology Review of Literature Research Methodology 72 Research Design 72 Dimensions of The Research 72 v ix

10 (xii) Objectives of Research 75 Hypothesis of Research 75 Data Collection 76 Reliability of Data 77 Validity of Data 77 Tools and Techniques for Analysis of Data 80 Limitations of research Data Analysis and Interpretations 82 Analysis Of Effect On Single and Double Planet Conjunctions With Zodiac Signs Findings of the Research Conclusion 947 Bibliography 957 Annexure 968

International Journal of Management (IJM), ISSN (Print), ISSN (Online), Volume 4, Issue 2, March- April (2013)

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976 ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 2, March- April (2013),