Nifty Monthly Returns and Performance in 2017

In this article, we will have a look at the Nifty Monthly returns from 1998 to present (May 2017) and its performance in 2017 so far.

Nifty Monthly Returns

Nifty Monthly Returns

Nifty Monthly Returns (1998-2017)

Nifty monthly returns from 1998-2017 have ranged from a lowest -28.06% in October 2008 to the highest +26.6% in May 2009.

Nifty has given positive returns for a consecutive 8 months in the year 2003 and year 2006-2007 followed by consecutive 7 months in the year 2004 and year 2014. In comparison, in 2017 we have 5 consecutive months with positive returns. One cannot be complacent that Nifty has reached a top since historical data suggests that there is still a potential for 3 more months with positive returns.

Nifty Performance in 2017

Here, I compare the Nifty’s performance in 2017 with Nifty’s average performance in last 5 yrs, 10yrs and 16 years. Data is from years 2000-2017.

Nifty Perofrmance 2017 - Nifty Monthly Returns

Nifty Performance 2017

As you can see from the chart, Nifty so far has far outperformed in 2017 compared to average performance in last 5, 10 & 16 years by roughly 16%, 13% & 11% respectively.

If Nifty keeps current pace with slope of the average nifty performance, then we are in for higher levels in Nifty over the next 7 months. We need to see if Nifty will keep outpacing the average Nifty returns or mean revert to the average.

Take Away

Both monthly returns data & average performance of Nifty suggest that we are yet to see a top in Nifty in 2017. So keep trailing the Nifty with stop-loss, we might be in for a bull ride. Of course, this is by no means the final word, anything can happen & can change the outlook suddenly. Keep your eyes open, respect risk & have a good trade.

Posted in Nifty.

2 Comments

  1. Nifty50 Three months return (%) is 4.79; however, Sensex Three months return (%) is 3.31.

    Which means that Nifty’s 3 months return is much higher than Sensex’s 3 month return. Can anyone please let me know the reasons for the same?

    • Both Nifty & Sensex indices have different composition. If the stocks of Nifty50 perform better than stock of Sensex30, then you will see more returns from Nifty than Sensex and vice-versa.

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