Underpricing in the initial public offerings (IPOs) is a well documented phenomenon in the stock markets. In this paper T P Madhusoodanan and M Thiripalraju analyse the Indian IPO market for the short-term as well as long-term underpricing. They also examine the impact of the issue size on the extent of underpricing in these offerings and the performance of the merchant bankers in pricing these issues. The study indicates that, in general, the underpricing in the Indian IPOs in the shortrun was higher than the experiences of other countries. In the long-run too, Indian offerings have given high returns compared to negative returns reported from other countries. The study also reveals that none of the merchant bankers showed any better pricing capabilities.
This paper tests whether the carry-forward transactions in different periods have any impact on week-end effect in the Indian stock market during the period January 1990-December 1999. This study uses the daily stock return of 82 companies traded in the Bombay Stock Exchange (BSE) and three stock market price indices, viz., BSE sensitive index, BSE national index, and S&P CNX Nifty index to investigate the weekend effect The results from the subsample period strongly support the existence of week-end effect during the period of ban on carry-forward (badld] transactions. This study also evidenced a reversal in week-end effect, i.e., positive Monday return and negative Friday return in modified carryforward transactions and revised modified carry-forward transactions. This paper further finds that there is consistent positive return on Wednesday and negative return on Tuesday due to possible impact of National Stock Exchange (NSE) on the week-end effect.
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