IGI Logo

Ho...Ho...Ho...Indian stock markets are trading at lifetime highs. Santa Claus has come early to Dalal Street this December. However, will he stay till the end? And which sectors will benefit from his arrival? We will figure that out in this report.

Santa Claus Rally is a popular seasonal phenomena observed in financial markets all across the world. Markets tend to rally in the last month of the year. The rally at times also extends for the first two trading sessions of the new year.

It is believed that there are two main reasons behind the rally in western markets. First, is the institutional investors withdrawing for year-end closing. Second is the retail investor buying due to the spillover of an optimistic outlook from the festive spirit. Nobody can pinpoint the reasons with certainty. But the fact remains that markets tend to move up in December.

Indian markets too witness a rally but the reasons here are different. Foreign institutional investors (FIl’s) withdraw from the markets from the second half of the month leading to lower volumes. This makes it easier for domestic institutional investors (DIl’s) to prop up their net asset values (NAV’s) for year-end closing.

December: A Jolly Month for Investors

NiftySO ended on a positive note in December for 80% of the times in last 20 years

December has the highest average monthly returns of 3.2%

What is Santa Claus Rally?

Santa Claus Rally is a seasonal stock market trend that involves a surge in stock prices during the last five trading days of December and the first two days of January

Indices Performance in December

Nifty 500 has given positive returns 80% of the time in the last 10 years, with an average gain of 2%

To Read Complete Report & Disclaimer Click Here
 

Please refer disclaimer at https://www.samco.in/disclaimer
SEBI Reg. No. :  INZ000002535

Above views are of the author and not of the website kindly read disclaimer