It’s that time of the year — to bring the tricolor out and be glued to the TV, experiencing goosebumps as the jaw-dropping parade unfolds on Kartavyapath. The roar of fighter jets, the synchronized marching, the vibrant colors – it’s a spectacle that fills your heart with pride and a sense of belonging.
While the nation celebrates the birth of its Constitution, investors have a different kind of parade in mind – the one on the Nifty screen!
For the past five years, 26 January hasn’t just been about national anthems and gulab jamuns; it’s been a day of distinct patterns in the Nifty’s performance. A mix of gains, dips, and surprises as intricate as the Indian flag itself.
Today, we’re raising the national flag on the Nifty’s Republic Day track record. Join us as we beat to the market’s pulse, ready to invest with insight and celebrate not just our nation’s Constitution but also our own financial victory!
Republic Day: Historical Stock Market Trends
| NIFTY50 weekly data of pre and post republic day | |||||
| Year | 1 Week Before 26th Jan (19th ) | 1 Week After 26th Jan 2nd Feb | Diff. % | ||
| 2019 | 10780.55 | 10893.65 | +1.05% | ||
| 2020 | 12248.25 | 11661.85 | -4.79% | ||
| 2021 | 14238.9 | 14647.85 | +2.87% | ||
| 2022 | 17277.95 | 17780 | +2.91% | ||
| 2023 | 17891.95 | 17610.4 | -1.57% | ||
How did the market move during Republic Week?
- The NIFTY50 has shown mixed performance in the week after Republic Day over the past five years. There were two positive returns, 1.05% in 2019 and 2.87% in 2021, and three negative returns: -4.79% in 2020, 0.01% in 2022, and -1.57% in 2023.
- 2019: The NIFTY50 saw a small but positive gain of 1.05% in the week after Republic Day. This could be attributed to factors like upcoming elections.
- 2020: The NIFTY50 witnessed a significant drop of -4.79% in the week after Republic Day. This could be due to factors like geopolitical tensions or global market sell-offs.
- 2021: The NIFTY50 recovered from the previous year’s decline, posting a gain of 2.87% in the week after Republic Day. It could have been due to improved economic conditions or specific corporate announcements.
- 2022: The NIFTY50 remained relatively flat, with a negligible change of 0.01% in the week after Republic Day. This suggested a cautious market sentiment or balancing positive and negative factors.
- 2023: The NIFTY50 experienced a moderate decline of -1.57% in the week after Republic Day. It was due to profit-booking after recent gains or concerns about upcoming events.
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Investing with the Spirit of the Constitution
Every Republic Day, we celebrate the birth of the Indian Constitution, which set the foundation for our democratic journey. But did you know our Constitution’s spirit holds surprising investing lessons? Yes, you read that right!
Let’s break down how some core principles from the document can guide our financial decisions and help us build a stronger India, one rupee at a time.
1. Fundamental Rights: Just like the Constitution guarantees you fundamental rights, responsible investing means respecting the rights of others and the environment. Avoid companies involved in unethical practices or harming the planet. Think of it as voting with your money, choosing businesses that align with your values.
2. Rule of Law: The Constitution ensures a fair and transparent system. Similarly, when you invest, choose regulated markets and platforms. Research thoroughly before putting your money anywhere. If it sounds too good to be true, it probably is.
3. Equality and Justice: Our Constitution strives for a society with equal opportunities. In the world of investing, this translates to seeking out diverse and inclusive options. Don’t let biases or stereotypes guide your decisions. Look for investments that cater to different needs and risk profiles, paving the way for a fairer financial landscape.
4. Secularism: The Constitution respects all faiths. Similarly, your investment strategy shouldn’t discriminate based on religion, ethnicity, or other factors. Focus on the financial merits of an investment, not the background of the people involved.
5. Federalism: Like our Constitution embraces federalism, diversifying your portfolio is key to a healthy financial strategy. Don’t put all your eggs in one basket, sectors, companies, or asset classes. Spread your investments across different asset classes like stocks, bonds, and real estate.
6. Democracy: The Constitution gives us the power to choose our leaders. Similarly, in your financial life, you are the ship’s captain. Take ownership of your investments, research thoroughly, and don’t blindly follow trends or herd mentality.
7. Collective Action: Just as our Constitution unites diverse voices, collective action also promotes healthy investment practices. Support financial literacy initiatives, advocate for consumer protection laws, and join investor groups to share knowledge and best practices.
8. The Golden Rule of Investing: “Do unto others as you would have them do unto you,” the golden rule engraved in our Constitution also applies to investing. Invest ethically, consider the environmental and social impact of your choices. Support companies that value sustainability and fair labor practices. Remember, responsible investments create a better future for everyone, not just you.
By embracing the spirit of our Constitution in our investment decisions, we can become partners in building a more prosperous and equitable India. So, this Republic Day, let’s celebrate the document, learn from its wisdom, and apply it to our financial choices. Remember, every rupee invested in a responsible, informed way contributes to a stronger, brighter future for ourselves and future generations.
Happy Republic Day!
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
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.