Abhijit Powar No Comments

As we approach the final trading week of 2023, a palpable excitement is brewing among traders and investors, fueled by the prospect of witnessing an official Santa Claus Rally.

Santa Claus rally is a seasonal phenomenon that involves a rise in stock prices during the last 5 trading days in December and the first 2 trading days in the following January. It refers to the jump in stock prices in the week between Christmas and New Year’s Day.

Since 1950, the S&P 500 index has gained an average of 1.3% during Santa Claus rally periods. Now the S&P 500 index teeters on the brink of a record-shattering feat, a mere 1% shy of surpassing its highest close. This air of anticipation is not just confined to Wall Street; it resonates across the globe.

Indian Market Triumph: A Year of Stellar Gains

In the vibrant markets of India, the year has been marked by a remarkable ascent, with a formidable 17% gain in Nifty so far. This impressive rally didn’t just materialize out of thin air; its seeds were sown twelve months ago. Those pivotal seven days at the year’s dawn saw the Indian markets leap by 1.4% in 2022, setting the stage for a year of robust financial growth.

Since 2000, average monthly return of Nifty is 1.09% whereas average return during Santa Claus Rally periods is 2.32%. In last 23 years, Nifty gave negative returns just 3 times during this period.

Looking Ahead: Hopes for a Prosperous 2024

As we stand on the cusp of 2024, there’s a collective hope for a verdant conclusion to this year, laying the groundwork for yet another bullish surge in the markets. This anticipation isn’t just about numbers and percentages; it’s a reflection of the enduring spirit of the market, resilient and ever-evolving, mirroring the hopes and aspirations of its myriad participants.

For a comprehensive understanding and more insights, please go through our detailed report.