On September 11, India’s stock market made history when Nifty 50 reached an impressive 20,000 points, a 1% increase from the day before. 20,000 is not just a number; but happiness for many.
This journey to the 20,000-milestone has taken a long time. Nifty 50 first hit 10,000 on July 26, 2017, and it took years to double that number. Before this, Nifty’s highest point was 19,991.85 on July 20 of this year.
From 10,000 to 20,000, it took 6 years, 1 month, and 16 days. India has come a long way in the last 30 years.
The index has jumped by nearly 11% so far this year and has doubled from the lows it experienced during the pandemic, when it dropped to around 10,000 levels.
With all this excitement, many are wondering the right time to invest.
Amid all the noise surrounding geopolitical issues, global valuations, and FII selloff, the Nifty bulls might be feeling a bit clueless about their next moves. But if you track historical trends, the rally may extend to the next month too.
Here, we’ve got some pretty interesting data that shows the average per-month returns from 2000 to 2022, covering the last 23 years.
Source: niftyindices.com and PrimeInvestor.in
Which months marked the highest and lowest points?
The Nifty has had its ups and downs over the past 23 years.
The best month for Nifty50 returns was in May 2009, with an impressive 28.07%, and October 2007 was also remarkable, with a 17.51% gain. On the flip side, the worst months were October 2008, with a drastic 26.41% drop, and March 2020, with a tough 23.25% decline.
Now, if we shift our focus from monthly to annual returns, 2008 stands out as the toughest year, with a significant 51.8% loss, due to the financial crisis.
But then, Nifty made a comeback, delivering its best-ever annual return in history of a whopping 75.7% in 2009, just a year after the financial crisis. Following this remarkable year, the most recent standout annual returns were in 2017 and 2021, with 28.65% and 24.12%, respectively.
What has October been like in the last 10 years?
Looking back over the last decade, October has proved to be one of the best months for Nifty Bulls. During this time, the Nifty index has given a positive monthly return with an average return of 2.93%.
However, research has shown that the cost of waiting for the perfect moment to invest usually exceeds the benefit of even perfect timing.
Trying to time the market perfectly is nearly impossible, and for most of us, the best strategy is to avoid attempting market timing at all. Instead, it’s wise to make a plan and invest as soon as you can.
Do you still believe there is a best month to invest?
Written By Shivani Singh
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions.
