May, The Month of Curse for Street
Bangalore: The market bulls from all over the world fears the month of May. Since 1996, in the month of May of every even numbered year, investors are left poorer with the sensex recording a negative close in each of these years.
Dalal Street has gone through a period of extreme pessimism during 1998, 2000, 2008, a respectable bull run on 2002, 2004 and an overt optimism bordering on irrational exuberance 2006.
Although it is a bit worn out notion but they believe – ‘Sell in May and go away.’ Dalal Street also holds this cliché partially.
You can also call it a coincidence but even the two worst market crashes took place in the month of May of last decade. One was 17th May, 2004, the index market crashed over 11 percent in a single session, immediately after top left political leaders said that they did not care if the market ‘goes to hell’.
