I have often seen many scrips not reacting according to the expectations of the majority of the traders/investors when the company has a news, some corporate action or earnings report on a particular day, due to which they incur unnecessary losses. Simple explanation for it is that market participants in that particular stock become sentimental especially during a news and no fundamental/technical analysis works on that day. Each participant has different expectations of a company’s earnings report/corporate action. So buying/selling in heavy quantities is expected which can disrupt the normal price action of the stock. Hence, its better to avoid trading in such stocks on their event day. One recent example of it was Bank of Baroda scrip which came under selling pressure right when its earnings report was announed on 6 May '25.
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