In Oct, sensex down 11 times in 18 years
M Allirajan | TNN Coimbatore: After a spectacular September, which saw sensex clocking more than 9% returns, will the markets usher in a crackling festival bonanza? While there has been much talk about "valuations getting stretched" and a "correction", October hasn't really been an exciting month for sensex in the past. The sensex has given negative returns in nearly two out of three occasions since 1991 when the economy opened up. The benchmark index has declined in 11 out of 18 years in October, data with BSE and domestic brokerage firm Anand Rathi financial services shows. "October would be (a) volatile (month). But even if there is a correction it will not be big," reckons Ajay Parmar, head, research, Emkay Global financial services. "Markets have fallen most of the times either before or after Diwali in the past 15 years," says D D Sharma, senior vice-president, research, Anand Rathi. The onset of the festival season and the announcement of corporate results act as a trigger for booking profits, he explains. "Barring some pockets of undervaluations, most of the large cap segment is fully valued discounting (2010-11) earnings expectations." Investors get into the exit mode when the results start trickling in and make a re-entry once the earnings get fully reflected,” say market observers. Though observers expect the quarter-ending September to be strong as advance tax payments have been buoyant, some believe earnings might lose steam after the festival season gets over. * Rally Faces Correction * After languishing in the red in October for almost the entire 1990s, the benchmark index started giving positive returns only from 2001 The onset of the festival season and the announcement of corporate results act as a trigger for booking profits, says D D Sharma, senior V-P, research, Anand Rathi Sectors like consumer goods and automobiles have been witnessing robust sales in runup to Diwali. But, some remain sceptical whether momentum can be sustained after October --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
