Why markets may rally in January

Highlights A study of Nifty performance every January from 1997 onwards shows an average return of 2.42 percent during the month  Traders employ leverage of 10x to trade the Nifty, which means fortunes can be made or lost with a 2.42% return on investment in January  A pre-election budget is a liberal, Santa Claus like budget where sops are announced for as many sections of the electorate as possible  Traders are known to build up exposure in anticipation of the budget which usually…