New Delhi: After reaping huge gains from the recent record-breaking rally on Dalal Street, investors can look forward to even better times ahead with the stock market entering a traditionally bullish phase that begins in November and continues for six months through April.
An analysis of stock market movements over the past decade shows that the market generally remains in a bullish phase during the November-April period, as compared to the preceding six-month period between May and October.
The famous Wall Street adage in the US – Sell in May and go away; But come back in November – has held true across various global markets including India over the years. Market pundits expect this trend to be repeated yet again during the November-April period.
While the market scaled 13,000 milestone for the first time in October this year, the total return of the benchmark Sensex was just eight per cent during May-October period this year. This six-month timeframe also included a sharp downslide of more than 30 per cent between May 11 and June 14.
In comparison, the market gave a bumper return of more than 52 per cent for investors between November 2005 and April this year, while taking the movement in Sensex as a benchmark.
The difference was even sharper in the previous year with a gain of only 0.3 per cent in May-October 2004 against a jump of 8.5 per cent in the Sensex from November 2004 till April 2005.
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