Nifty May outlook: What history suggests; HAL, PNB, M&M, BOB & BOI among stocks to watch 

JM Financial in its latest note said the Nifty has exhibited only an average price seasonality in the month of May, as the NSE benchmark has closed in the green on six out of past 10 occasions, with an average return and a median return of 1.5 per cent and 2 per cent, respectively.

Nifty Mid-cap index has exhibited a similar momentum, as it settled higher on six occasions with an average return and a median return of 0.4 per cent and 1.2 per cent, respectively. Out of past 10 instances, the midcap index has outperformed the Nifty on six occasions with an average underperformance of 1.1 per cent but a median outperformance of 0.4 per cent, JM Financial said.

Among sectoral indices that historically fared well in May, NSE Auto index has outperformed the Nifty on eight occasions with an average outperformance and a median outperformance of 2.4 per cent and 2.5 per cent, respectively. The NSE FMCG and NSE CPSE indices have outperformed the Nifty on seven occasions each with an average outperformance of 1.5 per cent and 0.2 per cent, respectively.

Underperforming indices included the NSE Metals and NSE Pharma, which have underperformed the NSE barometer Nifty on eight occasions each, with an average underperformance of 2.9 per cent and 4.2 per cent, respectively

NSE Energy and NSE Media indices have also underperformed the Nifty on 7 occasions each with an average underperformance of 1.8 per cent and 1.5 per cent, respectively.

Emkay Global remained constructive on Indian equities and sees the current run sustaining. It said a majority of the clients concurred with its positive view on India. "The RBI easing puts India in a more favorable cyclical position, especially as worries around a deep recession in the US abate. This is also resulting in India seeing disproportionate flows vs other emerging markets. Our sectoral calls faced push-back, though. Financials remains the favored sector, though our low-growth argument resonated with some specialists. SMID private banks are seeing interest, to play easy liquidity and the MFI turnaround," it said.

Among stocks, Mahindra & Mahindra, Kotak Mahindra Bank, Container Corporation of India, KEI Industries and Hindustan Aeronautics are some of the F&O names that closed in the green with a probability of over 80 per cent and an average positive return of over 5 per cent. 

On the flip side, stock such Bank of India (BOI), Steel Authority of India (SAIL), Punjab National Bank
(PNB), IIFL Finance and Bank of Baroda (BOB) settled in the red, with a probability of over 70 per cent and an average negative return of over 3 per cent, JM Financial noted.