Seasonal Effect : December

Lets check out Nifty's performance for the December months since 1990. As it can be seen that Santa Claus has been showering gifts to market participants as Nifty's average return since 1990 to 2009 has been just under 4%!

In 2010 till now Nifty has gained 1.5% and looks set for some more. So I would rather disagree with the theory that market participants tend to book some profits and relax to enjoy the vacations! There is something, maybe "portfolio churning" or maybe just festive mood that forces people to BUY! Need to check why 1990 and 1994 had a bad December.

If we were to believe history we are in for some more rally, but is it ever so easy in Markets?

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