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Ramadhan effect towards Nifty Shariah indices in India

Kokila Kalimuthu (VIT Business School, Vellore Institute of Technology, Chennai, India)
Saleem Shaik (VIT Business School, Vellore Institute of Technology, Chennai, India)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 13 June 2024

Issue publication date: 12 July 2024




This paper aims to analyse the weekday effect on the Nifty Shariah indices as per the Islamic calendar. The study is intended to know about the return and volatility of these indices during Ramadhan and non-Ramadhan days.


The study focuses on analysing the Nifty Shariah indices and Sensex daily returns collected from NSE India and BSE India, respectively, during the period of 1 August 2016 to 31 July 2022. Descriptive statistics are used to analyse the data, while the Ordinary Least Square method is used to determine the impact of weekdays on the Nifty Shariah indices. Additionally, the study applies the GARCH statistical model to examine the influence of Ramadhan on the returns and volatility of the Nifty Shariah indices.


All of the Nifty Shariah indices produced positive returns during the overall sample period. According to the study, Tuesday index returns outperform other weekdays. The GARCH model indicated that the coefficient values for the Nifty 50 Shariah and Nifty 500 Shariah indices were negative. Ramadhan has a strong negative effect on volatility, according to this study.


The outcomes of the research are beneficial for investors aiming to exploit daily or weekly price fluctuations, rather than pursuing extended investment periods. Furthermore, fund managers can employ these findings to shape trading strategies, and academics can examine the performance of Shariah indices in the Indian context. This enables devout investors to make significant financial choices, thus advancing ethical values in society and upholding standards of both public and private morality.



Kalimuthu, K. and Shaik, S. (2024), "Ramadhan effect towards Nifty Shariah indices in India", Journal of Islamic Marketing, Vol. 15 No. 8, pp. 2086-2103.



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