Stock market to scale new high in Oct? Canara Bank, NMDC, Delta Corp, PFC, REC among stocks in focus

 With the stock market hitting fresh record high every other day, many market participants are anticipating a healthy correction ahead. But if history is to go by, such expectations may be unwarranted, given October's history of delivering positive returns for stock market indices. Canara Bank, Delta Corp Ltd, TVS Motor, ICICI Bank, NMDC Ltd, Power Finance Corporation Ltd (PFC), REC and SAIL are among a few F&O stocks that have historically showed seasonality and delivered solid gains in October.    

Data compiled by JM Financial suggests Nifty has delivered positive returns in eight out of past 10 Octobers, with average return of 1.7 per cent and median return of 2.5 per cent. BSE in fact settled higher in Octobers in nine occasions and delivered an average return of 2.1 per cent and median return of 2.2 per cent.   

Among sectoral indices, Nifty Bank closed higher in nine instances with average and median returns of 3.9 per cent and 3.7 per cent, respectively. Auto (as suggested by NSE Auto), Metals, Energy indices ended higher in 7 Octobers, with 2.5-2.7 per cent average returns. 

FMCG has been the worst sectoral index, falling in seven occasions and delivering an average negative return of 0.6 per cent. 

Among F&O stocks, Canara Bank delivered an average return of 13 per cent in the past 10 Octobers with the probability of it delivering positive return standing at 80 per cent. 

Delta Corp and TVS Motor delivered double-digit returns, on an average, with 80 per cent probability of settling the month on a positive note. ICICI Bank, NMDC, PFC, SAIL, REC, GMR Airport Infrastructure and Manappuram Finance delivered 8 per cent average return each, with probability of closing higher for October at 80-90 per cent.