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“Such periods of extreme calm have not necessarily indicated whether the next major move would be upward or downward, but they have often preceded a meaningful increase in market movement,” said Raj Gaikar, equity research analyst at SAMCO Securities. Gaikar analysed 6,630 trading days across 320 calendar months since January 2000 and found only eight months in which the Nifty did not record a single daily move of plus or minus 1% or more. That makes August’s market behaviour a rare event, occurring roughly once in every 40 months. The previous instances were June 2017, July 2018, December 2019, June 2021, April 2023, and July, September and December 2025. All eight occurred after 2017, with no similar episode recorded during the first 17 years of the dataset. Also Read | Value stocks are making a comeback in India. These 10 stocks could benefit Big move, uncertain direction The immediate aftermath of these calm periods was not necessarily dramatic. The Nifty’s average one-month forward return was 1.22%, with the index ending higher in five of the eight instances. The three-month performance, however, was far more volatile. Returns ranged from a decline of 29.34% to a gain of 12.06%. Six of the eight episodes were followed by a move of more than 5% in either direction. That historical pattern makes the current setup less a bullish or bearish signal than a warning about the market’s compressed trading range. “With August 2026 now joining this rare list, the data suggests that the Nifty may be entering another phase where volatility could return after an extended period of consolidation,” Gaikar said. The subdued index performance comes as strategists increasingly expect returns to become more dependent on earnings delivery and individual stock performance. Axis Securities said its investment strategy for September should shift “from index-level positioning towards earnings-led stock selection.” The brokerage said the broader market had already benefited from domestic liquidity and better-than-expected earnings growth. Going forward, it expects companies with visible earnings growth, strong cash flows, credible capital-expenditure plans and improving return ratios to outperform. Axis Securities raised its December 2026 Nifty target to 27,360 after upgrading its Nifty earnings estimates for FY27 and FY28 by 0.3% each. Its target is based on 19.5 times December 2027 estimated earnings. The brokerage remains constructive on Indian equities, citing macroeconomic fundamentals, government capital expenditure, GST 2.0 reforms and an improving corporate earnings cycle. But it also advised investors to maintain diversified portfolios and reduce concentration in expensive stocks. Anand Shah, CIO – PMS & AIF, ICICI Prudential Alternate Investments, echoed that view. “We expect returns to become increasingly earnings-led and stock-specific rather than driven by broad-based multiple expansion,” Shah said. His concerns include higher crude oil prices and currency weakness, which could create imported inflationary pressures. The investment approach, he said, remains focused on companies with visible earnings growth, resilient balance sheets, cash-generative operations and reasonable valuations. Foreign investor activity has also improved after a prolonged period of selling. Arihant Bardia, CIO and founder of Valtrust, said foreign portfolio investors turned buyers in July after four consecutive months of selling and continued buying in August. FPIs bought ₹20,200 crore in July and ₹29,631 crore in August, he said. “If the recent improvement in FPI flows sustains, we could see a meaningful rerating of select large caps, particularly private banks,” Bardia said. That potential return of foreign demand could provide support to parts of the large-cap market. But Bardia also expects earnings delivery, rather than liquidity alone, to drive returns. The same shift is visible across the broader market strategy. While Axis Securities expects Nifty earnings to grow at a 13% compound annual rate between FY23 and FY28, it warned that geopolitical tensions, crude oil volatility and currency movements could still generate near-term turbulence. The message from the market’s unusual August calm is therefore straightforward: the Nifty may be quiet, but the risk environment is not. History does not reveal whether the next move will be higher or lower. It does suggest that the current lack of movement may not last. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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