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Charts & Analysis

Chart Of The Day: Nifty Drops 9% in November

Look at the Monthlies:

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As @chondhe points out on twitter, December has traditionally been good for the Index, with the last negative December being way back in 2001, and that too less than 1% down. The only bad December for the Nifty was 1994 (but that was the year it started!) The Sensex has however seen a –12% December in 1990.

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But then, like I was saying, this is quite big on tail risk – that there’s hardly anything special about December other than that FIIs run away for Christmas. This time, I doubt that also happens as the Greek/Italian/Spanish messes unravel on a weekly basis now!

  • Mark Twain once made a very famous comment on dangerous months in stock markets –
    “October: This is one of the particularly dangerous months to invest in stocks. Other dangerous months are July, January, September, April, November, May, March, June, December, August and February.”
    As far as the comprehensive data of your post shows, we have had one of our worst Novembers.

  • Aniruddha Pant says:

    Very interesting compilation. Did not think Dec has been so good traditionally. What I am surprised about is the standard deviation being of the same order of magnitude as return for Dec. Very few quant trading systems would have this on monthly level….