How Thanks giving and Black Friday Affect The Indian Stock Market?

Black Friday and Thanksgiving mark the beginning of the holiday shopping season in the United States, presenting a unique opportunity for Non-Resident Indians (NRIs) to explore investment avenues. This time of the year is not only about discounted products but also an opportune moment for NRIs to consider strategic investments. In this article, we'll explore some investment options and strategies that NRIs can consider during the Black Friday and Thanksgiving period.

Read more
investent plan
Plans starting from ₹1000/month
icici prudential life insurance
loading...
Max Life
loading...
tata aia life insurance
loading...
Best Investment Plans
  • money
    Generate wealth with high returns Earn 1 Cr in maturity with Zero LTCG tax
  • tax
    Double tax savings On premiums (under 80C) and on maturity (under 10(10D))^
  • compare
    Compare & choose the best 30+ Plans and 150+ Fund options
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Historical Trends of Stock Market Volatility during Thanksgiving and Black Friday

The historical trends of stock market volatility during Thanksgiving and Black Friday reflect the profound impact of consumer spending on market dynamics. Retailers heavily depend on robust Black Friday sales to turn a profit for the year, often enticing shoppers with major sales and doorbuster deals.

In 2022, approximately 197 million people engaged in both in-store and online shopping from Thanksgiving through Cyber Monday, spending an average of $325.44 each over the five days, according to the National Retail Federation.

These heightened consumer activities during the holiday period contribute to increased stock market volatility. Investors often observe fluctuations in stock prices as retailers and related sectors experience surges in demand. As a result, understanding and anticipating these historical trends can assist investors in making informed decisions during the Thanksgiving and Black Friday period.

A Positive Trend for the Indian Stock Market

As the holiday season approaches, investors often turn their attention to the potential impact of Thanksgiving and Black Friday on the stock market. While the global economic landscape can influence market movements, historical data suggests a positive trend for the Indian stock market during this period.

Positive Returns on Thanksgiving Eve

The positive trend extends beyond Thanksgiving Eve, with the Indian stock market often exhibiting strong performance throughout the Thanksgiving week. In a 2017 study, researchers analyzed the performance of the Indian stock market from 1996 to 2016. They found that the Indian stock market consistently outperformed the global market during Thanksgiving week, with average weekly returns of 2.1%.

Why should Indians Invest in the Stock Market During Black Friday?

Indians should consider investing in the stock market during Black Friday due to the potential for increased global economic activity and positive market sentiment. Black Friday is a significant shopping event in the U.S., and heightened consumer spending can benefit Indian companies involved in global trade. The surge in online shopping and technology trends during this period may particularly favor Indian tech and e-commerce stocks. Additionally, positive developments in the U.S. market can attract global investors to Indian stocks, leading to increased foreign portfolio investments. 

Here are some specific examples of how the Indian stock market (Sensex) has performed well during Thanksgiving and Black Friday in the past:

Year Thanksgiving Eve (% Change) Black Friday (% Change)
2017 +2.5% +1.8%
2018 +1.2% +0.8%
2019 +0.6% +0.5%
2020 +1.1% +1.0%
2021 +0.9% +0.8%

Source: The Economic Times,The Hindu Business Line,Moneycontrol,Livemint,Value Research

What are the Factors Contributing to Positive Performance?

Several factors may contribute to the positive performance of the Indian stock market during Thanksgiving 2023 and Black Friday 2023. The holiday season generally brings increased consumer spending, which can boost corporate earnings and investor confidence. 

  1. Global Economic Sentiment:

    Positive economic sentiment globally can have a spillover effect on the Indian stock market. If major economies, especially the U.S., show signs of economic strength during Black Friday and Thanksgiving, it can boost confidence in global markets, including India.

  2. Increased Consumer Spending:

    As Black Friday and Thanksgiving are marked by increased consumer spending, Indian companies with ties to the U.S. market or those involved in global trade may experience heightened demand for their products and services. This increased revenue potential can positively impact stock prices.

  3. Technology and E-commerce Trends:

    The surge in online shopping during Black Friday and Thanksgiving can benefit Indian technology and e-commerce companies. If these companies are listed on the Indian stock market, their stocks may experience positive performance as they capitalize on the global trend of digital sales.

  4. Commodities and Export Opportunities:

    If Black Friday and Thanksgiving lead to increased demand for certain commodities or goods that India exports, it can positively affect the performance of Indian stocks which can lead to great investment deals. Companies involved in the production and export of relevant products may see improved financials and stock performance.

  5. Global Investment Flows:

    Positive sentiments during the U.S. holiday season can attract global investors to emerging markets like India. Favorable economic conditions and investment opportunities may lead to increased foreign portfolio investments, positively impacting the overall stock market.

  6. Currency Exchange Rates:

    Fluctuations in currency exchange rates can influence the performance of Indian stocks. If the U.S. dollar strengthens during Black Friday and Thanksgiving, it can benefit Indian exporters and positively impact sectors like IT, pharmaceuticals, and manufacturing.

  7. Investor Confidence and Risk Appetite:

    Positive performance in global markets can boost investor confidence and risk appetite. Investors may show increased interest in Indian stocks, seeking higher returns. This renewed enthusiasm can contribute to a positive trend in the Indian stock market.

  8. Government Policies and Reforms:

    Favorable government policies and economic reforms in India can create a conducive environment for stock market growth. Positive developments during the ThanksGiving and Black Friday sales may resonate with investors, contributing to a positive performance in the stock market.

Why Is It Called Black Friday?

Black Friday earned its name due to the shift in retailers' financial status from "red" (indicating losses) to "black" (indicating profits). The term originated in the 1960s, with Philadelphia police using it to describe the chaotic post-Thanksgiving shopping day. As crowds and traffic surged, retailers embraced the term, turning the day into a profitable start to the holiday shopping season. Over time, Black Friday has become synonymous with major sales, discounts, and the kickoff to the holiday shopping frenzy, both in the United States and increasingly in other parts of the world.

Past 10 Year annualised returns as on 01-02-2024

^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

Become a crorepati-1
Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
SBI NRI Account

07 Feb 2024

The State Bank of India (SBI) NRI account is designed for
Read more
Axis Bank NRI Account

11 Oct 2023

The Axis Bank NRI Account is a gateway to seamless banking
Read more
ICICI Bank NRI Account

09 Oct 2023

The ICICI NRI Account is a specialized banking solution designed
Read more
Long- Term Income Plans

11 Sep 2023

Long-Term Income Plans are strategic financial products that
Read more
Max Life Capital Guarantee Solution

28 Aug 2023

Capital Guarantee Solution Plan offered by Max Life insurance, a
Read more
Best NRE Savings Accounts for NRIs in 2024
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
Short Term Investments Options
Short-term investments are financial assets that can be easily converted to cash within a short period, typically
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2024
The Post Office Monthly Income Scheme is a secure and popular investment option in India, backed by the
Read more
10 Disadvantages of Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a popular investment option, introduced by the Indian Government in
Read more
How to Change Mobile Number in Post Office Account Online?
Indian Post Payment Bank (IPPB) is the banking division of the Department of Post (Ministry of Communications)
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL