December’s +2% Takes Nifty To +6.8% in 2013

1 Comment » Written on January 2nd, 2014 by
Categories: MonthlyMoves

December 2013 was, as December’s go, a good December. The Nifty clocked over 2% to end the year at +6.8%.

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As we can see, the markets favour December, and we have had positive Decembers in 9 of the last 10 years. (And 16 of the last 20)

2013 ended reasonably for the Nifty, considering it was the year of the lowest GDP growth in 8 years, very high inflation, and the drop of the dollar of about 10%.

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This is an election year. The last three election years (1999, 2004 and 2009) have seen reasonably positive results (+67%, 10%, +76%). Will we see a great time ahead too?

January tends to be extremely volatile - with average returns of -0.1% but a standard deviation of 8.5%. It’s not useful to predict direction based on months of the year anyhow, but this is great eye-candy. And with the increase of foreign investor participation, the calendar year becomes significant as new allocations (or de-allocations) happen for India as a country.

For the sake of completeness, here’s the Sensex:

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What’s your thought on where January takes us?

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About the Author:
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.

One Response to “December’s +2% Takes Nifty To +6.8% in 2013”

Thanks Deepak, this monthly roundup satisfies my OCD ;)

A tiny request, could you plot a chart with the Nifty/sensex against the companies’ revenues & profits?

TIA!


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