Street signs: July-rebound theory fails, index funds get popular, and more

Most shares have declined in July amid sharp sell-off by foreign portfolio investors (FPIs) hurt by the increase in tax surcharge

July-rebound theory fails

 

Before the start of this month, a theory doing the rounds was that investors should build long positions as the markets tend to jump sharply in July from their June lows. In the past 26 years, the benchmark Sensex has jumped an average 12.3 per cent from its June lows to July highs. Investors who placed bets based on this theory, however, are caught on the wrong foot this year. The Sensex difference between June 2019