April is not only a new month but also the beginning of a new financial year. What can the investors expect during this month from the markets. Zee Business has this exclusive research report from Kushal Gupta. Know here what he reveals to Managing Editor Anil Singhvi.

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Kushal said that his research is backed by the data of the last five years i.e. 206-2020 which has been carefully analysed. He said that NSE Nifty, BSE Sensex and Nifty Auto have given positive returns on all five occasions in April.

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His advice to investors is to keep an eye on all the three indices. Moreover, the average returns of all indices have been positive, he further said. This return is over 3 per cent, he further said.

The Nifty Mid Cap and Small Cap data released in 2020 suggests that the average returns in April were around 13-14 per cent. Meanwhile, Nifty 50 and Bank Nifty have also grown around this level in 2020, Gupta said.

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In 2016-17, while Nifty grew by 1.5 per cent, Nifty Small Ca and Nifty Mid Cap grew between 3 and 6 per cent during the April month. It will be interesting to see if the 2016 performance of Mid Cap and Small Cap is repeated this time around in 2021.

The average returns by Nifty, Bank Nifty and BSE Sensex over the last 5 years were 4.9 per cent, 4.8 per cent and 4.8 per cent respectively.

Average Returns over last 5 years

  • Nifty Small Cap 100 – 6.2 per cent
  • Nifty Mid Cap 100 – 5.7 per cent
  • Nifty FMCG – 3.1 per cent
  • Nifty IT – 4.2 per cent
  • Nifty Pharma – 7.8 per cent
  • Nifty Metal – 5.9 per cent
  • Nifty Auto – 7.7 per cent

He said that on the overall basis, Nifty Auto and Nifty Pharma have been the top performers in the month of April.

Metal is another sector, where the stocks have traditionally done well, he further said.

The Maket Guru has also said that the Mid Cap and Small cap stocks are likely to do well over the April and May months.