Markets gain in May for fifth straight year

Indices gained because of net inflows of over Rs 10,000 crore from foreign portfolio investors

‘Sell in May’ is an oft-repeated adage but it does not seem to apply to Indian equities. This year, the benchmark indices, Sensex and Nifty, have risen 4.1 per cent and 3.4 per cent, respectively. 

It’s the fifth straight year when Indian equities have risen in May, belying the theory that May is a seller's market. In the past 10 years, the market has gained in six out 10 months in May, while in the past 15 years the market has been a gainer nine times in May. 

Indices this May have gained because of net inflows of over Rs 10,000 crore from foreign portfolio investors. The best gains clocked by the market in the past 10 years in the month of May was in 2009, when the Sensex rallied 28 per cent. 

Markets had fallen in May 2008 and for three consecutive years in May from 2010 to 2012.