Key Points
Mumbai: El Nino - a phenomenon that refers to the warming of the ocean surface that leads to lower rainfall - is being seen as a key risk to India's stock market by many..
But historical data of India's market performance following El Nino shows a different picture..
The average three and six-month Nifty returns post-August in these six years are 5.29% and 12.1%, respectively, while the one-year forward returns have been 22.82%, show data from Samco Securities...
"We have observed that the Nifty has generally performed on a positive note for most of the past EL Nino years," said Apurva Sheth, head of research, Samco Securities..
For 2023, India Meteorological Department (IMD) forecasts a normal monsoon and, in anticipation of positive IOD (Indian Ocean Dipole) conditions in the Indian Ocean, limits the monsoon band at a low of 96%...
