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2 hours ago
22
As February winds down, investors are turning their attention to what March could bring for Indian equities. A look at historical data suggests that while March hasn’t traditionally been a blockbuster month, certain indices and sectors have consistently managed to stay in the green.
Over the past decade, the Nifty 50 has delivered an average return of 0.8%, making it the strongest performer among the broader indices for March.
The story shifts slightly as one moves down the market-cap ladder:
- Nifty Midcap Index: Average return of 0.3 per cent
- Nifty Smallcap Index: Average negative return of 0.5 per cent
Despite mixed returns, the consistency of gains tells a more nuanced story. The Nifty 50 has closed positive in eight of the last ten Marches, while Midcap and Smallcap indices have finished in the green six times each over the same period.
In sectoral trends, the Nifty FMCG Index stands firmly at the top, clocking an average gain of 2.6 per cent in March across the last decade.
- Energy Index
- PSU Banking
- Metals
- Financial Services
All of these sectors have ended in the green on average over the past ten years. However, not all sectors share this upbeat trend. The Nifty Auto Index has historically dipped by 2 per cent on average, while IT has also tended to end March in the red.
On a more subdued but positive note, Pharma, Realty, and Banking have managed to post marginal but consistent gains.
A closer look at consistency shows that six sectors have delivered positive March returns seven out of the last ten times:
- Nifty Energy
- PSU Banking
- Nifty Bank
- Financial Services
- FMCG
- Metal
These sectors have demonstrated dependable resilience, even in months where the broader market has remained muted.
While March has traditionally been a modest month for equities, the data indicates that Nifty Bank, Nifty, and the Nifty Midcap Index have managed to stay positive more often than not.
For investors, this means the month may not always deliver outsized returns, but several key sectors, and the headline indices, have a track record of offering stability.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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