3Jun
BTST Tips

Theory Of Sell On May And Buy In October For Current Stock Market Condition

“Sell in May and go away, come back on October Day” is the Indian version of a proverb mostly used in Great Britain. This is very true for the current Indian Stock Trading Tips and strategy. Actually, the economists are assuming that Indian economy will grow positively in not so far future, this assumptions give rise some theories for the investors with maximum possibility of profit. Normally, it is presumed that any purchase in the month of May give negative returns for equities, which is somewhere true for the Asian market but, this time the scenario is completely different. After, the newly formed government came into power the momentum of the stock market changed and we all seen a positive change in the financial reputation of the Indian Market.

The Indian Perspective

In the previous three to four years, market observed 5% returns in the May-October cycle in comparison to the 9% of the November-April duration. While there is no thumb rule or full-proof evidence of this observation but May-October facing summer vacation so the lower trading volumes are seen. On the other hand, November-April facing increased investment due to winters. This will lead to such difference in the general situation.

Currently, India feeling positive financial waves due to new government. Due to the political changes in the country and decisions taken by the concerned ministers, the market become very volatile. This will lead to make the economy of the country more strong which is resulted with positive valuation of the currency, domestic industries. Thus there are some sectors whose shares can be sell at present on the current values and can be re-buy in the month of October when the price goes down. The lowering down of prices is very much sure and predicted by the expert economists.

How to pick out the sectors on whichthe impact can be viewed?

Well! This is really a nice and very important question which can arise in the mind of investors. The answer to the above question is, any financial expert can guide you with Stock Trading Tips so that the investment become easy and fruitful. However, the positive changes on the number of sectors can be assumed by the fact that, all the sections which may be affected by the financial policies of the government which are commodity goods, infrastructure as well as rate sensitive sectors like banking, IT, automobiles and so on. Thus you can plan to sell now and purchase back in the October for fruitful returns in the stock market.

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