Winning Bizness Desk
Mumbai. Believe it or not, the analysis of the data obtained from the regulator, the months of November and December usually proved to be great for those investing in the stock market. Data for two decades indicates that the average returns of the stock market in the last two months of the year are much higher than the rest of the months. On the other hand, the domestic markets have generally been giving negative returns between January-March. That is, investors incur losses during this period. Besides, this year also, the domestic market can give strong returns in November-December. Foreign investors have started buying. According to NSDL data, between October 20 and November 4, foreign institutional investors have invested Rs 24,552 crore in the Indian stock market.
Highest average return of 2.85% in December
According to stock analytics and financial education services platform Trade Brains, the domestic stock market has given the highest average return of 2.85% in December for the last 22 years. November is second in this regard with an average return of 2.70%. In contrast, between January and March, stock investors have suffered an average loss of 0.24%. For the past two decades, the average returns for May and October have been less than 1%. In fact, in the last months of the year, foreign investors make heavy purchases.
16% return annually since 1999
According to the historical data of the stock market, the Nifty 50 has given an average return of 15.91% annually from 1999 to 2021. However, due to inflation, rising interest rates and the Russia-Ukraine crisis, this year's returns are also expected to be slightly below average. The decline in the domestic market for two days ended on Friday. Sensex closed at 60,950 with a gain of 114 points and Nifty gained 64 points at 18,117. Sensex rose 990 points and Nifty 330 points this week. On October 28, they were at the level of 59,960 and 17,787 respectively.