The bogey of Oct Effect: 'Month of market crashes' spooks trading community

The average daily trading volume (ADTV) for the National Stock Exchange's equity cash segment has declined sequentially in seven of the 11 years

For something that started out as a throwaway line, the ‘Mark Twain Effect’ has taken on a life of its own. This line ‘October: This is one of the peculiarly dangerous months to speculate in stocks’ is often referred to when the stock market reports slower returns in the month of October — often striking fear that a downturn is on the horizon when the autumn weather begins to roll in.

Market activity during Diwali tends to be heavy-footed — particularly if the Festival of Lights falls in October, reveals an analysis by ICICI Securities.

The average daily trading volume