Making Money While You Sleep: Fund Manager's Unusual Insight Draws Surprise, Skepticism

In a surprising twist to conventional trading wisdom, a long-term analysis of the Nifty 50 has revealed that the bulk of market returns over the past 25 years have come not during trading hours, but overnight.

A closer look at the return components shows:

• Overnight returns delivered a 5.7% median annual return

• Intraday activity led to a 2.4% annual return

• Dividends added 1.4% annually, providing minor but positive support

"This isn't statistical noise," said Anoop Vijaykumar, Head of Equity at Capitalmind. "It's a persistent phenomenon that has survived multiple market cycles, regulatory changes, and the evolution of India's capital markets."

This pattern has held steady through multiple market cycles and global events including the dot-com crash, 2008 financial crisis, GST implementation, demonetisation, and the Covid-19 pandemic, the report pointed.

Notably, even after the National Stock Exchange introduced a pre-market auction window from 9:00 a.m. to 9:15 a.m. in 2010, the trend has remained consistent.