Election outcome uncertainty, earnings: Should you sell in May and go away?

Indian markets, experts say, are already pricing in a victory for the Modi-led NDA in the ongoing general elections, albeit with a reduced majority.

The month of May is traditionally considered bad for equity markets in Europe and the US, as fund managers typically go on a long summer vacation. Back home, the outcome of the ongoing general elections, corporate results, oil prices and rupee level are some of the key factors investors will monitor closely at a time when the indices are trading close to all-time highs.

In the past 10 years (since 2008), the S&P BSE Sensex has given a positive return on seven occasions. In 2009 the index rallied 28 per cent post election when the outcome saw the United Progressive