The Nifty rallied 8.7 percent last month — its best monthly performance since November 2020. The rally cemented July’s tag as the best calendar month for the markets, however, data shows that markets generally slack off in August after posting strong returns in July, a report by Business Standard stated.
Sample this: the month of July has delivered an average 3 percent gain in the past 10 years, noted BS. Interestingly, returns have been negative in July only once in nine years, it added.
However, the exuberance in July follows a much quieter August, informed the report. In the past decade, the average Nifty returns in August were 0.6 percent, said BS.
In 2021, however, there was a role reversal, with the Nifty rallying 0.3 percent in July and 8.7 percent in August, it added.
Meanwhile, the data also showed that in the last 10 years February has been the worst performing month of the year, giving an average return of -1.36 percent followed by March with an average 0-year return of 0.2 percent.
However, apart from July, the months of April, May and October have an average 10-year return of over 2 percent each.
According to experts, markets jumped in July on the back of consolidation in commodity prices, decent earnings by India Inc, and positive growth commentary by the US Fed as well as the RBI. Also, the foreign investors turning net buyers for the first in July since October 2021 also aided the positive sentiment.
