It’s pertinent to note that the February 2016 pattern in Sensex and Nifty has more or less been similar in the last decade. The BSE Sensex has given negative returns on six occasions, while Nifty 50 has surged on five occasions.
The month of Union Budget proved depressing for the markets, with an ailing global economy and increasing volatility. Both benchmark indices, Sensex and Nifty 50, have posted their second worst loss in the current month since 2007. Both have crashed 6.90% and 7.05% respectively in February 2016. In 2007, both had plunged 8.18% and 8.26% respectively.
It’s pertinent to note that the February 2016 pattern in Sensex and Nifty has more or less been similar in the last 10 years. The BSE Sensex has given negative returns on six occasions, while Nifty 50 has surged on five occasions. For the last 10 years, February Sensex returns have been as follows: 0.61% (2015), 2.95% (2014), -5.19% (2013), 3.25% (2012), -2.75% (2011), 0.43% (2010), -5.65% (2009), -0.39% (2008) and -8.18% (2007). The Nifty 50 mixed bag has been similar: 0.40% (2015), 3.06% (2014), -5.66% (2013), 3.57% (2012), -3.13% (2011), 0.82% (2010), -3.86% (2009), 1.67% (2008) and -8.26% (2007).
Recovery ‘March’
Though the Union Budget has invariably led to a jittery stock market on many occasions, March has consistently emerged as a stabilizer, in fact a savior. In the last decade, both benchmark indices have bounced back strongly on six occasions in March. Moreover, Nifty 50 has outperformed BSE Sensex in March returns.
Experts believe the current global slowdown and shattered investor confidence in worldwide equity markets have taken a toll on Indian stock markets. To make matters worse, India’s domestic scene is far from rosy. Contrary to what the trend says, the Union Budget 2016 is expected to restore the lost enthusiasm in Indian stock markets. All eyes and ears would be on the Feb 29 budget bytes …
It’s pertinent to note that the February 2016 pattern in Sensex and Nifty has more or less been similar in the last 10 years. The BSE Sensex has given negative returns on six occasions, while Nifty 50 has surged on five occasions. For the last 10 years, February Sensex returns have been as follows: 0.61% (2015), 2.95% (2014), -5.19% (2013), 3.25% (2012), -2.75% (2011), 0.43% (2010), -5.65% (2009), -0.39% (2008) and -8.18% (2007). The Nifty 50 mixed bag has been similar: 0.40% (2015), 3.06% (2014), -5.66% (2013), 3.57% (2012), -3.13% (2011), 0.82% (2010), -3.86% (2009), 1.67% (2008) and -8.26% (2007).
Recovery ‘March’
Though the Union Budget has invariably led to a jittery stock market on many occasions, March has consistently emerged as a stabilizer, in fact a savior. In the last decade, both benchmark indices have bounced back strongly on six occasions in March. Moreover, Nifty 50 has outperformed BSE Sensex in March returns.
| Indices post budget | ||
| March | Sensex (%) | Nifty (%) |
| 2015 | -4.78 | -4.61 |
| 2014 | 5.99 | 6.8 |
| 2013 | -0.13 | -0.18 |
| 2012 | -1.96 | -1.66 |
| 2011 | 9.09 | 9.38 |
| 2010 | 6.68 | 6.63 |
| 2009 | 9.18 | 9.31 |
| 2008 | -11 | -9.36 |
| 2007 | 1.03 | 2.03 |
Experts believe the current global slowdown and shattered investor confidence in worldwide equity markets have taken a toll on Indian stock markets. To make matters worse, India’s domestic scene is far from rosy. Contrary to what the trend says, the Union Budget 2016 is expected to restore the lost enthusiasm in Indian stock markets. All eyes and ears would be on the Feb 29 budget bytes …
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