Why does the stock market fall during the Kumbh Mela, there is an uproar every time for the last 20 years

New Delhi: Mahakumbh Mela 2025 is one of the biggest religious events in the country, which has started from Monday. According to reports, more than 4 million people have taken the first dip at the Sangam bank. Kumbh Mela is an important religious event not only for the people of India but also for Indian and foreign devotees from all over the world. It is believed that taking a dip in the holy Ganga during the Kumbh Mela purifies the soul and attains salvation. However, an interesting question arises as to why a decline is seen in the Indian stock market during the Kumbh Mela. This is not just a normal thing, during all the Kumbh Melas held in the last 20 years, the condition of the stock market has been bad. Let us try to understand this through statistics.

Sensex falls during Kumbh Mela

SAMCO Securities has studied the performance of the Indian stock market during the Maha Kumbh Mela. Apoorva Seth, Head of Market Perspectives and Research, SAMCO Securities, examined the market performance during six Kumbh Melas in the last 20 years. The report shows that on these six occasions, BSE's key index Sensex witnessed negative returns from the beginning till the end of the Kumbh Mela. Overall, the Sensex fell by 3.4 per cent during the Kumbh Mela period.

Why did the decline occur?

The biggest fall in the Sensex occurred during the Kumbh Mela of 2015, when the Sensex fell by 8.3 per cent between July 2015 and September 2015. The second biggest fall was during the Kumbh Mela in April 2021, when the Sensex fell 4.2 per cent. At the same time, the lowest decline in Sensex was seen in the Kumbh Mela of 2010, which was 1.2 percent. Similarly, there was a decline of 1.3 percent in 2013 and 2.4 percent in 2016. Thus, there has been no such occasion during the Kumbh Mela in the last 20 years when the Sensex has given positive returns.

Positive return after six months

Apoorva Sheth of SAMCO Securities also pointed out that in the six-month period after the Kumbh Mela, the Sensex showed positive returns 5 out of 6 times. On an average, the Sensex registered a growth of 8 per cent in these six months. The biggest rally was seen after the 2021 Kumbh Mela, when the Sensex rose 29 per cent. In 2010 also there was an increase of 16.8 percent. However, after the 2015 Kumbh Mela, the Sensex fell by 2.5 percent. Read Also: Oh my god! There was an uproar in the stock market, investors put their hands on their heads, Rs 12 lakh crores were lost.