The January Effect is a seasonal market anomaly describing the historical tendency for stock prices—particularly smaller companies—to outperform in January compared to other months. This pattern is often attributed to tax-loss selling in December, where investors sell underperforming stocks to offset capital gains, followed by reinvestment of those funds in January. In India, a somewhat similar seasonal effect plays out around March-end (the close of the financial year) as investors book losses and rebalance before reinvesting in April. While the effect has weakened as markets have become more efficient, it continues to influence tactical positioning among some active traders.
For android only
