March: The Month of Lowest Gains and Highest Losses in NEPSE's History

Tue, Mar 2, 2021 4:31 PM on Stock Market, Exclusive,

Based on its performance since 2011, NEPSE Index has closed higher in 90 % of Jul months. In terms of the actual gain, it has gained the most (7.64 % on average) in Apr month. This is the data of the last 10 years in NEPSE.

Data tells us that NEPSE tends to lose more times than it gains in the month of March. In the last 10 years, the NEPSE index gained only 27.27% of the times in the month of March. When it lost, it lost 2.17% on average, which is the highest average loss for any month in a year.

1) Banking Index

2) Development Banks 

3) Finance

4) Hydropower

5) Life Insurance

6) Non-Life Insurance

7) Microfinance

Key Takeaway

Unlike what an amateur investor believes, corrections are the perfect time to enter a bull market. As the king of investing Warren Buffett put it better, an intelligent investor is fearful when others are greedy and greedy when others are fearful. 

Since the data tells us that stock prices tend to lose in the month of March, value investors and chart readers alike would want to buy stocks when the price is cheap. Similarly, they might want to take profits when the market is gaining in July. 

However, we only analyzed historical data of the past in this article. Like always, stock prices are not obliged to be cyclical or play by the rules. This analysis does not guarantee that the index will fall this March or in the many upcoming months of March, just like it does not guarantee the index will gain in April or July. 

All data is taken from Sharesansar's premium software SSPro. SSPro is a complete package with technical tools, fundamental data, live charting, portfolio tracker, and many more.