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Coimbatore: After performing at par in the month of September, which saw Sensex clocking more than nine percent returns, will the markets steer in a crackling festival bonanza? If we go through the past records, October hasn't really been an exciting month for Sensex.

The data with BSE and domestic brokerage firm Anand Rathi financial services shows that since 1991, the Sensex has declined 11 times out of 18 years in October; it has also given negative returns in nearly two out of three occasions when the economy has opened up. D D Sharma, Senior Vice President, Research, Anand Rathi said, "October would be a volatile month. But even if there is a correction it will not be big. Markets have fallen most of the times either before or after Diwali in the past 15 years."

According to the market observers, barring some pockets of undervaluations, most of the large cap segment is fully valued discounting (2010-11) earnings expectations. Investors get into the exit mode when the results start trickling in and make a re-entry once the earnings get fully reflected. "The onset of the festival season and the announcement of corporate results act as a trigger for booking profits," says Sharma.