Historically, March has been a volatile month for the Indian equity markets. For starters, it marks the end of a financial year, wherein there is some compulsive portfolio rebalancing trade by large funds, both domestic and foreign. Retail investors, too, prefer to 'cash-in' on their gains and losses before the financial year runs out.
That apart, markets also look to price-in the potential growth in corporate earnings for the last quarter of the fiscal (fourth quarter of the financial year) and the guidance the companies may give for the upcoming financial year.
A look at the Nifty's performance in the