Should you sell stocks in May? No, say analysts – Business Standard

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May is traditionally considered a bad month for equity like Europe and the US as the fund managers there typically go on a long summer vacation. 

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Read more from our special coverage on “MARKETS”Nifty breaks 7,800 as global stocks tumble; ICICI Bank dips 3%Indian markets will see a de-rating in near term: Mahesh NandurkarQuarterly earnings, oil to set market trajectoryMarkets to consolidate in the week aheadNifty settles at 7,850 on first day of May series; global markets dive
In the past 10 years (since 2006), Indian markets have given a positive return on five occasions. In 2009 they rallied 28% when the post the election outcome that saw the United Progressive Alliance (UPA) government take charge for the second consecutive term. May 2014 also saw the markets gain 8% after Narendra Modi-led NDA got an overwhelming mandate post the general elections.
Also Read: FPIs stay glued to Indian market, pump in $2.2 billion in April
 
On the domestic front, some of the factors that will determine the market sentiment this year include the outcome of general elections, status of key Bills in Parliament’s session that concludes on May 13