It is that time of the year when the country is amid the monsoon season, and households deck their homes to welcome one special guest – Lord Ganesha- on the auspicious occasion of Ganesh Chaturthi 2023.
Many people wait for this auspicious day to start something new, and many consider it an excellent time to make new stock market investments.
Investors and financial analysts often speculate about the market’s behavior during this festive season. Using historical data and trends, let’s look at how the market has traditionally performed during Ganesh Chaturthi.
To see how the stock market has performed during Ganesh Chaturthi, we have analyzed the last five-year performance of the Nifty50 index. What was the Nifty 50 level on the day of Ganesh Chaturthi, 30-days before and after? As the Indian stock market is closed on Ganesh Chaturthi, we took the Nifty 50 closing level one day before Ganesh Chaturthi.
Last Five Years Performance Nifty 50 Index During Ganesh Chaturthi
|Ganesh Chaturthi||30 Days Before Chaturthi||Close Before Chaturthi||30 Days After Chaturthi||1-Year Return|
|13th Sept 2018||11355||11369||10472 (▼7.88%)|
|2nd Sept 2019||10997||11023||11359 (▲3.04%)||▼3.04%|
|22nd Aug 2020||11132||11371||11153 (▼1.91%)||▲3.15%|
|10th Sept 2021||16280||17369||17895 (▲3.02%)||▲52.75%|
|31st Aug 2022||17158||17759||17094 (▼3.74%)||▲2.24%|
The table above shows that the market’s performance in the past during Ganesh Chaturthi has been mixed. The stock market gave negative returns in three of the last five years. The market experienced a significant downturn, with a decline of more than 7% in the 30 days following the festival in 2018.
The mixed returns before and after the festival show that the performance depends on factors like ongoing domestic and global market trends, corporate earnings, and the economy’s condition.
However, the market’s chances of providing a higher return increase over time. The table above shows that the returns have been largely positive over more than one year. The Nifty 50 index increased by more than 50% between August 22, 2020, and September 10, 2021.
The day of Ganesh Chaturthi is considered auspicious for beginning anew and revamping your investment strategy. Here are some investing strategies to follow in Ganesh Chaturthi 2023
Your investment decisions and strategies should not be based on short-term trends of the market, tips, and recommendations. Much like Lord Ganesha’s head symbolizes wisdom and intelligence, trust in your discernment when making investment choices. Invest in companies with solid fundamentals, good cash flows, and impressive return metrics while maintaining a long-term view.
Just as Lord Ganesha’s four hands symbolize various aspects, including desire retrenchment, enlightenment, ambition pursuit, and blessings, your investment strategy should focus on achieving balance. Building a diversified investment portfolio with a balanced exposure between high-risk and low-risk asset classes would be best. It will help you navigate diverse market conditions and cycles effectively.
Lord Ganesha is also called Chinteshwara because of his small yet sharp eyes. It helps him focus on tasks without distractions. Similarly, you must keep a hawk-eye on market developments and stay informed about market news. It is crucial to make well-informed decisions, particularly during market uncertainty. It not only helps to minimize losses but also increases the chances of making profits on investments.
So, as we prepare to celebrate the auspicious day of Ganesh Chaturthi 2023, let us embrace the qualities of humility, adaptability, flexibility, and limiting ourselves to specific ideas. Research asset classes and align your investments with your financial objectives and aspirations.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.