Market outlook: Should you sell stocks in May and go away?

Since 2010, the S&P BSE Sensex has given a positive return on six occasions in May, data show. In May 2014, it surged 8 per cent - the biggest percentage-wise gain in May in the last decade

The month of May is traditionally considered bad for equity markets, especially in Europe and the US, as fund managers typically go on a long summer vacation – and hence the adage “Sell in May and Go Away.” 

As markets head into May, most analysts remain cautious and expect the Indian markets to remain volatile – taking cues from global (oil prices, bond yields, policies of global central banks) and domestic (rising Covid cases, pace of vaccination, extension of lockdown and mobility curbs across key states) developments.

Since 2010, the S&P BSE Sensex has given a positive return on six