How Indian stock market fared in December over last decade
What's the story
As the year nears its end, investors are keenly observing the Indian stock market's performance in December. Historically, this month has been a mixed bag for the Nifty 50 index. According to available data, the index has given positive returns in six out of 10 years with an average gain of over 1.6%. The best December rally was seen in 2023 when Nifty gained a whopping 7.94%.
Yearly analysis
Nifty 50's performance in December: A decade-long overview
The Nifty 50 index has had its ups and downs over the years. It ended positively in 2015, 2017, 2019, 2020, 2021, and 2023. However, it also witnessed declines in four years: 2016 (-0.47%), 2018 (-0.13%), 2022 (-3.48%), and most recently in December last year (-2.02%). The index's performance has been influenced by various market factors during these years.
Index performance
Midcap and smallcap indices outperform Nifty in December
The Nifty Midcap index has outperformed the Nifty 50 with positive returns in seven out of 10 years, averaging a return of 2.1%. The Nifty Smallcap index has also beaten the benchmark index with an average return of at least 2.8% in eight out of 10 years. These indices have shown resilience and growth potential during December over the past decade.
Sectoral gains
Sector-wise performance
Sectorally, the IT, Metal, and Real Estate sectors have given the best December returns with average gains of 3.7%, 4.3%, and 3.9% respectively. The FMCG, Energy, Auto, Pharma and Banking sectors have also witnessed decent gains during this month over the past decade.